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The united States, at this time has an unemployment rate of 6. 2 percent according to the U. S. Bureau of Labor and Statistics (“Employment Situation,” 2014, p. 1), which is a slight decrease from the 6. 7 percent rate in March 2014, and a great decrease from the unemployment rate of 10. 0 percent in October 2009. This had a direct effect on the inflation rate. In 2004 he inflation rate was 3. 3 percent, and reached a high of 4. 1 percent in 2007, which is the highest it had been in the previous ten years.
As of July 22, 2014 inflation rate as 2. 1 percent, which is a vast improvement from the rates listed above, but still not as low as the rate of 0. 1 percent in 2008. (“Inflation Rate,” 2014, p. 1) The economy has been showing growth over the past five years, in area such as domestic product growth, but wage gains have not kept up with economic growth. From the second half of 2013 and the beginning of 2014, there has been improvement in the economic market and the country continues to move into economic recovery.
The Gross Domestic Product (GAP) defines aggregate output as the monetary values of all final goods and services that are produced within the borders of a given country during a specified time frame which is usually a year (McConnell, 2012). To obtain an accurate measure, all goods and services produced during a year must be counted only once. By doing this, those products that have to go through many production stages before they reach the market for sale, as many Of these parts may have been bought and sold several times prior to becoming final goods.
The current downward trend for interest rates should help to expand the economy; however, loans are hard to come by and lowering the interest rate has little impact if businesses that need capital can’t obtain loans. The FOMCL(Federal Open Market Committee), the 12 member committee that makes decision for the US Federal Reserve, is trying to stimulate the economy through printing money and purchasing treasuries. Fifth politicians could do something to figure out how to lower the debt ceiling, and the Fed could intention with the downward trend of interest rates, this would help ease the burden for all of us, especially those who are unemployed.
Continuing to provide incentives to U. S. Companies to employ those who are unemployed, providing assistance to those who are small business owners, would also be a great help in getting the economy to flourish again. Conclusion The macroeconomic status of this country needs the help of politicians, both Republican and Democrat, to bring this country out of debt and return it to the economic super power that it used to be.