Essay about Economic: Economics and Moderate Unemployment Rate

Submitted By RhondaBrown1
Words: 616
Pages: 3

The economy of the United States is the worlds largest national economy.
The bubble burst, the fund rate has been down to zero since then. The unemployment rate has kept rising from under 5% to more than 10% and back to 8.3%. The F.E.O said, 8.3% was great and QE has been effective. The dollar has been devalued more than 40%, but the deficit current account has been solved. The economy shrank to negative figure, but improved within a year. Now we have slow growth and inflation. The economy of the United States ia a mixed economy and has maintained a stable overall GDP growth rate, a moderate unemployment rate, and a high levels of research and capital investment. It has been the world's longest national economy since at least the 1890's. An interest is the cost of borrowing money. Amoung the many industries affected by fluctuations in interest rates. Real estate and banking are perhaps the most directly impacted. When interest rate increase borrowing becomes more expensive dampening consumer demand for more ages and other loan products and nagatively affecting residental real estate prices. There has been a spike in the number of house being sold interest rates have hit rock bottom, and record weakening in the federal budget balance within our economy, it is still not where it needs to be. The economy take more credit for investment and the increasing the investment will lead to increase the employment opportunties and allow higher consumption and investment expenditure in the country. In the same way, reducing the reserve requirments and purchasing bonds will lead to greater availability of money with the bank that will help to increase the money supply and investment in the country. Two important factors affect the feds decision to raise rate inflation and the overall health of the economy. When inflation is too high or increasing too rapidly. Natural monopolies can be particularly beneficial. This is because of their ability to attain lower cost of production, often far lower than would be possible with competitive firms producing the same product in the same region. However, it is almost always necessary for such monopolies to be regulated by a relatively uncorrupted government in order for society to obtain the potential benefits. This is because such monopolies by themselves, as is the case with all monopolies, have little incentive to charge…