Problem 1
What is the current level of unemployment? Is the economy at full employment? Is the
current low level of unemployment an indication that the labor market is in good shape?
According to Harriet Torry’s article:” The unemployment rate fell to 4.9%, falling below
5% for the first time since February 2008 just as the recession began” (para. 2). However,
there are concerns as the number of jobs available to the citizens at that time dropped as
well due to the high wage offerings. In the current state of the view, the labor market is
tighten, also, that could be harm the ability of more people who want to find a job in the
future. As the Torry’s article, the economy is in the good performance. However, basis on
the labor market, most of businesses cannot afford the uptake of more employees in future.
The economy may static for a certain period.
What measure is commonly used to determine the inflation rate and what does that
measure indicate about the current level of inflation? Is this is high or low rate of inflation
and is it considered to be good for the economy? Why?
In my opinion,“ Rising prices” is the commonly to measure the inflation. In Sussman’s
article:”Consumer price is an index to determine the inflation rate by reflecting the price
changes for a basket of selected market items”( para. 1). The economy of the U.S. is
growing is good, cause the indication of the inflation rates are falling and so is the overall
cost of living. The indicate level of the economy is slightly higher than the anticipation of
the bank of lowering it further. So, the current status is good for the economy but not
satisfactory to the authorities.
What was the growth rate of the economy in fourth quarter of 2015? Is this a good rate of
growth? How does it compare to the growth rate of the economy earlier in 2015? Which
sectors of the economy are attributed with leading economic growth in the fourth quarter?
Which sectors created a drag on economic growth?
Jeffrey Sparshott written:” The growth rate of U.S. economy in the fourth quarter of 2015
was 0.7% in its GDP, and the economy had advanced 2% in the third quarter and 3.9% in
the second”(para.2 ). The growth rate of the economy is good, but too low level as this one
keep the economy at risk in the event of a recession. The economic sectors that take credit
