Since the trough of the last recession in 2009 the United States has experienced one of the longest business cycle expansions on record although until recently the upswing has been characterized by relatively low rates of economic growth. Outline and discuss two macroeconomic issues/challenges facing the United States that could end the expansion possibly create a recessionary gap? You may want to consider the challenges posed by the growing budget and trade deficits that are discussed in your text. Utilize the GDP equation (GDP=C+I+G+X-M) as the framework for crafting your answer.
Following 2 challenges:
Rising government obligation: U.S. is drawing nearer close to 100%
that is transforming into unsustainable. it's anticipated that
legislature would lessen its consumption to adjust spending plan.
Subsequently, G is most likely going to fall in future. that may
diminish total national output.
Gross domestic product = C+I+GM
Here G can fall which can cause different fall in total national
output.
Falling work support rate: when monetary retreat, work interest has
debilitated significantly in USA. Fall being born investment has
overstated work cost in USA. Rise being born cost could diminish
venture and fares.
(I) will be contrarily influenced.
Ascend in cost of creation and swelling can adversely affect the
fare (X).
Since the trough of the last recession in 2009 the United States has experienced one of...
What do current economic data tell us about the health of the economy? Assess the current health of the U.S. economy by evaluating the key economic indicators that we have looked at in this course. How close is the overall economy to potential GDP and the natural rate of unemployment? The relevant economics statistics include the growth rate of real GDP, the unemployment rate, and the inflation rate at a minimum. You are encouraged to discuss and evaluate other economic...