Christopher Nieto, Veronica Rodriguez,
Reynaldo Morales, Vanessa Monge
Mr. Frank Vigil
Economic Advisement Paper
There are different schools of thought about how the economy arrived at its current state. Conversely, there are different schools of thought on how to restore the economy. There are some who would advocate that going back to the same economic policies that created the currents conditions of the economy. In the following paragraph of this paper team B will discuss the current state of the United States economic recovery from the prospective of Unemployment, Consumer income, Interest rates, and Expectations respectively. This information will be summarized and recommendations …show more content…
With an unemployment rate at 7.3 percent, the future expectations for the economy do not look good. Even though the unemployment rate went from 7.4 to 7.3 percent, it does not represent a gain for the U.S. economy. That .1 percent was due to individuals who stopped looking for jobs or who stopped working.
With a high unemployment rate individuals will only use their money in necessary stuff for their households like milk, cereal, and eggs. As a business owner, there is the choice of investing more or less in this economy. The expectations for the owner of a fast food restaurant may look unfavorable in the future. As a result, the owner will invest less. On the other hand, the owner of a grocery store will invest more in this economy due to the certain food that is been sold mostly.
When a business owner expects demand to be higher in the future, he will invest more in the economy. The productivity capacity, investment demand, and aggregate demand will increase. Business owners are taking in mind two important shift factors, the future output and future prices. With the positive expectations of a business owner the aggregate demand will curve to the right.
When consumers have a negative