Week 3, Learning Team - Aggregate Demand and Supply Models - Economic Critique Essay Example
An Economic Critique of Aggregate Demand and Supply Models
An Economic Critique of Aggregate Demand and Supply Models The recent fall of the United States economy has created a society of fear, insecurity, and doubtful investors, retirees, and consumers world-wide. Economists from around the world have come together to solve world-wide economic issues and bring stability back to businesses, households, and the government. Economics teaches you how to approach problems; it does not provide what is right or what is wrong, nor does it provide you with a definitive answer. Consistent evaluation of economic factors like unemployment, economic expectations, consumer income, and interest rates, can prove to be highly effective.
Unemployment Rate The unemployment rate steadily has declined over the last three years; there was a difference of 1.6% from July 2011 to July 2013. In July 2011 the unemployment rate was at 9% while in July 2013 it was reported at 7.4% so there was a decline of 1.6% (Bureau of Labor Statistics: The Employment Situation, 2013). The unemployment rate lowering over the last three years has been a positive thing for the United States economy because it means more jobs were created in 2013 and thus more people are working. The positive upturn in the unemployment rate would means that the household income has increased and there is more spending money power available. Even though there is some positive feedback in the unemployment rate numbers there are still other issues that affect the economy and still need to be dealt with like the government budget cut, which could produce more businesses taxes. The economy is on a slow but steady up-swing do to job creations, which has caused the unemployment rates to lower for the last three years. Some job markets have created new jobs like the retail and service market but other have not improved at all like the manufacturing and health care markets. The important thing is that there are more
An Economic Critique of Aggregate Demand and Supply Models The recent fall of the United States economy has created a society of fear, insecurity, and doubtful investors, retirees, and consumers world-wide. Economists from around the world have come together to solve world-wide economic issues and bring stability back to businesses, households, and the government. Economics teaches you how to approach problems; it does not provide what is right or what is wrong, nor does it provide you with a definitive answer. Consistent evaluation of economic factors like unemployment, economic expectations, consumer income, and interest rates, can prove to be highly effective.
Unemployment Rate The unemployment rate steadily has declined over the last three years; there was a difference of 1.6% from July 2011 to July 2013. In July 2011 the unemployment rate was at 9% while in July 2013 it was reported at 7.4% so there was a decline of 1.6% (Bureau of Labor Statistics: The Employment Situation, 2013). The unemployment rate lowering over the last three years has been a positive thing for the United States economy because it means more jobs were created in 2013 and thus more people are working. The positive upturn in the unemployment rate would means that the household income has increased and there is more spending money power available. Even though there is some positive feedback in the unemployment rate numbers there are still other issues that affect the economy and still need to be dealt with like the government budget cut, which could produce more businesses taxes. The economy is on a slow but steady up-swing do to job creations, which has caused the unemployment rates to lower for the last three years. Some job markets have created new jobs like the retail and service market but other have not improved at all like the manufacturing and health care markets. The important thing is that there are more