Question

How has the U.S. economy been doing in recent years? Why do you think that is? Gather relevant economic statistics, such as the growth rate of real GDP, the unemployment rate, and the inflation rate, to support your case. • Did any of the data from the project surprise you? Which data? Why? Does this data indicate a growing, stagnant or declining economy? What does this data tell you about the health of our economy? Why? Find a current news or journal article that describes our current economy and that supports your opinion.

Answer 1

Overall, the economy is doing good though there is downside risk of slowdown & recession due to coronavirus related lockdown in almost all its trading countries.

The current economic growth rate of US economy is 2.1% as of Q4, 2019

This economic growth is in the ideal range of 2-3% , enough to provide employment opportunities without causing inflation or asset bubble. However, due to coronavirus related global lockdown, US economic growth is expected to slide to below 2% in 2020 and 2021

The unemployment rate is expected to average lower 3.5% in 2020, 3.6% in 2021 and 3.7% in 2022, lower than Fed's targetted 6.7%, but nature of job for many would degrade and hence, structural unemployment is expected to rise.

Inflation rate is expected to be 1.9% in 2020, 2% in 2021 & 2022. The core inflation rate will average 1.9% in 2020, 2.0% in 2021, and 2.0% as well in 2022.

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Yes, the unemployment rate seems to surprise as despite the downside risk to economy growth of US economy, the unemployment rate is lower of 3.5%, below Fed's targetted 6.7% unemployment rate.

This shows that the economy is declining as the unemployment rate of 3.5% indicate that people tend to get pr-occupied with some odd and low-paying jobs due to global lockdown and contraction of world market due to coronavirus epidemic.

The data indicate declininge economy and that the economy is entering recessionary phase. It is very unfortunate that after a long time since financial crisis of 2008-09, the US economy has revived and now is forced to enter recessionary phase due to coronavirus epidemic.

The health of the economy is in staggering state. It require huge governmental stimulus to ensure the economy remains up & running.

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A news article that talks about US economy in current & near future is: Business Today article: US stuck in death vs economy situation amid coronavirus crisis.