ECO100 Week 9 Assignment
The Fiscal and Monetary Policy and Economic Fluctuations
Sarah Ferreira
ECO100
Dr. Phyllis Isley
December 08, 2014
The Fiscal and Monetary Policy and Economic Fluctuations
Discuss the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation and the unemployment rate in your explanation.
Five (5) years back in 2008 interest rates were curbed several times in an endeavor to economic stimulation. The rates of interest commenced on January 2008 at 3.5% and by the climax of the year in December 2008 the rates of interest had been brought down to 1%. At present, the rates of interest are said to be the three-quarters of one percent lessened resting at 0.25% as per the Fed. As per the Consumer Price Index (CPI) the procuring power of the dollar has grown over the previous five years. 2008 saw the buying power of a dollar had the same value. However, that same dollar possesses different buying power in the year 2013. The dollar’s purchasing power bill in 2013 is currently worth $1.08.The present situation of the economy in the United States is that the unemployment is continuing at its original rate. The economy is constant to progress since the time of recession but, at a lesser rate than what society seemingly expects. According to Time Business & Money, the growth rate of the economy did not exceed than 2.25% and in the fresh quarter it has gone down a per cent. Although the economy has been rising at a minimum rate, but steady unemployment level decreased during this process. The new job rates that are being summed up to the economy is less of what is required to pull down the unemployment at a rate that is acceptable (Floyd Norris, 2012). According to the Bureau of Labor and Statistics U.S. Department of Labor the present unemployment rate is 7.3%and the unemployed resting at 11.3 million is yet a large amount of U.S. citizens being unemployed. Five years back in 2008 the unemployment rate ranged between
Sarah Ferreira
ECO100
Dr. Phyllis Isley
December 08, 2014
The Fiscal and Monetary Policy and Economic Fluctuations
Discuss the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation and the unemployment rate in your explanation.
Five (5) years back in 2008 interest rates were curbed several times in an endeavor to economic stimulation. The rates of interest commenced on January 2008 at 3.5% and by the climax of the year in December 2008 the rates of interest had been brought down to 1%. At present, the rates of interest are said to be the three-quarters of one percent lessened resting at 0.25% as per the Fed. As per the Consumer Price Index (CPI) the procuring power of the dollar has grown over the previous five years. 2008 saw the buying power of a dollar had the same value. However, that same dollar possesses different buying power in the year 2013. The dollar’s purchasing power bill in 2013 is currently worth $1.08.The present situation of the economy in the United States is that the unemployment is continuing at its original rate. The economy is constant to progress since the time of recession but, at a lesser rate than what society seemingly expects. According to Time Business & Money, the growth rate of the economy did not exceed than 2.25% and in the fresh quarter it has gone down a per cent. Although the economy has been rising at a minimum rate, but steady unemployment level decreased during this process. The new job rates that are being summed up to the economy is less of what is required to pull down the unemployment at a rate that is acceptable (Floyd Norris, 2012). According to the Bureau of Labor and Statistics U.S. Department of Labor the present unemployment rate is 7.3%and the unemployed resting at 11.3 million is yet a large amount of U.S. citizens being unemployed. Five years back in 2008 the unemployment rate ranged between
References: Ferrara, P. (2013, February 07). The Worst Five Years Since Great Depression. Retrieved December 6, 2014, from Forbes Magazine: http://www.forbes.com/sites/peterferrara/2013/02/07/the-worst-five-years-since-the-great-depression Norris, F. (2012, December 29). In a 5 Year Comparison, the US recovery fares well. Retrieved December 6, 2014, from New York Times: http://www.nytimes.com/2012/12/29/business/us-recovery-fares-well-in-a-5-year-comparison.html? r=0 O 'Sullivan, S. P. (2014). Survey of Economics: Priciples, Applications, and Tools. Upper Saddle River: Pearson. Powers, S. (2014, March 15). Fiscal policy and Monetary Policy. Retrieved December 6, 2014, from Small Business: http://smallbusiness.chron.com/explainin-difference-between fiscal-policy-monetary-policy-3873.html