Econ Assignment 2 Essay

1480 Words6 Pages
1. Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis. Considered to be the worst recession since the Great Depression also the longest lasting 18 months the economy collapsed in five quarters, including four quarters in a row. Two quarters dropped more than 5% and in 2008 quarter two shrank a staggering 8.9% when the GDP turned positive in quarter 3 of 2009 the recession ended due to the economic stimulus spending. All though the National Bureau of Economic Research concluded that the recession officially came to an end in June of 2009, the rate of unemployment continues to remain persistently high, holding at 9.1% in July of 2011. Some economists believe there is an estimated relation among variations in the supply of money and changes in inflation. Even though the relationship between money and inflation is not specific, few economists believe that considerable increases in the money supply will not lead to large increases in cost. Economists are not concerned about this relation in the short run, because they believe that while the economy is less than at full capacity that monetary expansion will not result in inflation. But as the economy recovers and output and employment recover, inflation is likely to rise. Unemployment Rates Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Annual | 2007 | 4.6 | 4.5 | 4.4 | 4.5 | 4.4 | 4.6 | 4.7 | 4.6 | 4.7 | 4.7 | 4.7 | 5.0 | | 2008 | 5.0 | 4.9 | 5.1 | 5.0 | 5.4 | 5.6 | 5.8 | 6.1 | 6.1 | 6.5 | 6.8 | 7.3 | | 2009 | 7.8 | 8.3 | 8.7 | 8.9 | 9.4 | 9.5 | 9.5 | 9.6 | 9.8 | 10.0 | 9.9 | 9.9 | | 2010 | 9.7 | 9.8 | 9.8 | 9.9 | 9.6 | 9.4 | 9.5 | 9.6 | 9.5 | 9.5 | 9.8 | 9.4 | | 2011 | 9.1 | 9.0 | 8.9 | 9.0 | 9.0 | 9.1 | 9.1 | 9.1 | 9.0 | 8.9 | 8.7 | 8.5 | | 2012 | 8.3 | |
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