Economic Conditions Paper
- Submitted by: szkola
- Views: 820
- Category: Politics: Economics
- Date Submitted: 11/29/2010 03:05 PM
- Pages: 4
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The US economy is combined of many leading factors influencing the dynamics of the market conditions. They affect how the markets respond with respect to their statistics and implementations. The economic conditions are influenced by to the rate of unemployment reflecting economic growth, and the measurement of the Gross Domestic Product (GDP). The government is using fiscal policy to create expenditures and revenue collections to influence the economy, as well as actions to control the money supply to the markets by implementing monetary policy by Federal Open Market Committee (FOMC).
High rate of unemployment
There is a high rate of unemployment which seems to be more of a problem than the high rate of inflation. The reason it seems that unemployment is such a problem is because if the citizens do not have income, there will be an increase in poverty and the funding available for benefits will be decreased sooner than later. Not to take anything away from the high rate of inflation which is also a problem, but without the jobs to make money there will be nothing to spend it on no matter the cost. According to the Bureau of Labor Statistics, the March 2010 rates for unemployment reflected an increase for forty four states including District of Columbia based on a year earlier (Bureau of Labor Statistics).
Economic growth
Economic growth is defined as a positive change within the production of goods and services by a country during a defined period of time. Economic growth is normally measured as a percentage with the difference or change in real GDP (Gross Domestic Product) from one period to the next. (Guardian) In the text, the author discusses the GDP for thirteen countries with a chart to show the differences from one country to the next and an overall outlook. The GDP is used to measure both the total income earned within the economy along with the total expenditure based on the output of goods and services. (Mankiw)
Fiscal Policy
When the...
High rate of unemployment
There is a high rate of unemployment which seems to be more of a problem than the high rate of inflation. The reason it seems that unemployment is such a problem is because if the citizens do not have income, there will be an increase in poverty and the funding available for benefits will be decreased sooner than later. Not to take anything away from the high rate of inflation which is also a problem, but without the jobs to make money there will be nothing to spend it on no matter the cost. According to the Bureau of Labor Statistics, the March 2010 rates for unemployment reflected an increase for forty four states including District of Columbia based on a year earlier (Bureau of Labor Statistics).
Economic growth
Economic growth is defined as a positive change within the production of goods and services by a country during a defined period of time. Economic growth is normally measured as a percentage with the difference or change in real GDP (Gross Domestic Product) from one period to the next. (Guardian) In the text, the author discusses the GDP for thirteen countries with a chart to show the differences from one country to the next and an overall outlook. The GDP is used to measure both the total income earned within the economy along with the total expenditure based on the output of goods and services. (Mankiw)
Fiscal Policy
When the...