Demand And Supply In The Macroeconomy

2372 words - 10 pages

Demand and Supply in the Macroeconomy

ECON 372

Demand and Supply in the Macroeconomy

The current state of our economy in the United States is no secret to anyone. In the United States over the past couple years, the economy has been lower than ever and not increasing as it should. Gas prices are at an all time high, home prices are at an all time low, and unemployment rates continue to stay on the rise. We’re still the largest and most powerful country in the world and our GDP holds steady at $47,200. That is an increase of 1.9% for the first quarter in 2012. The consumer spending rate has increased, although still not at a high for the United States. The current consumer ...view middle of the document...

In today’s economy the unemployment rate according to (Zukerman, 2013) it is about 14%, not 7.5% as the news headlines put it. Zukerman, say the 14% is due to the government not adding all the unemployed people who are actively looking for work or those that are not looking. If the government were to put these type of numbers it might slow down our progress even more because organizations and employers will not want to hire workers due to the lack for demand of supplies therefore slow production on goods and services. In terms of unemployment and the affects it has on the economy, as just mentioned unemployment affects the supply and demand. The aggregate supply and demand curve would shift to the right left because of less people working, meaning there is people with less money and therefore they cannot go out and spend money on things like a day in Disneyland or going to a restaurant to have a nice dinner. What does this mean in the economy, it means the country’s Gross Domestic Production(GDP) is low, according to (Zuckerman, 2013) the current GDP is around 2% very low for the country, it should be trending between 7-10% to be effective and put the country’s economy out of recession or at least back to the starting line.
Currently within the US economics news reported by PNC Financial group for the month of July 2013 is a slightly improved Jobs outlook but still has slow GDP growth. The current growth was revised down to a 1.8 percent for the second quarter (Another Good Employment Report despite Soft GDP Growth). The expectations for the third quarter are to see much of the same and although economic optimism is slowly improving we will not see and major game changers in 2013. Therefore demand will remain stagnant with looming uncertainty in healthcare, regulatory, taxes, and consumer confidence This uncertainty especially within the fiscal policy regarding regulations, the Affordable Healthcare act, and unresolved tax implications has a very real look of contractionary fiscal policy. No new stimulus is proposed as the administration wrestles with scandals and policy arguments over immigration. This lack of focus on any new federal stimulus will take the shape of moving the aggregate demand curve to the left as demand will remain weak with companies remaining uneasy about pursuing large purchase or seeking new lines of credit. This will do little in the way of supply as supply will most likely follow demand and remain stagnant that will leave prices dictated by market forces such as fuel prices, consumer confidence, and the Consumer Price Index.
Consumer Income
Consumer income has a direct correlation to aggregate supply and demand because it has a direct effect on the propensity of the consumer to exhibit frugality when income levels are low or to spend on luxuries that they may not necessarily need but feel is appropriate due to the excess income when income is higher. Consumer expenditure is determined by a...

Other assignments on Demand And Supply In The Macroeconomy

What Role Should Authorities Have In Maintaining A Clean And Adequate Water Supply?

3291 words - 14 pages , making improvements in infrastructure, and being careful with this precious resource benefits everyone (Wright et al, 2014). Harnessing the world’s major water supplies has allowed civilizations to develop and prosper, yet over-use of these sources is taking its toll. This is a major problem because it takes time to replenish the water supply and use is exceeding the ability of nature and water treatment plants to keep up with demand. It causes

Time In The Sound And The Fury

1118 words - 5 pages * The Impact of Time on the Theme and Characters of the Sound and the Fury * The Interpretation of Time Lapses and the Influence It Has on the Narration in Benjamin’s Section Benjamin is 33 years old at April 7th, 1928. He is a child with a mask of adolescence and what he perceives from the world around him is totally different from normal people, because let’s say he has a gift that no normal person can have, he is an idiot. Our

Recent Changes In The Breakfast And Lunch

1134 words - 5 pages crucial in our children nutrition and health. Especially as childhood obesity is a big concern in our nation and it is a cause for many chronic illnesses like type 2 diabetes, blood pressure and high cholesterol. Different studies and researches have shown that school meals are risk factors for childhood obesity. In an effort to stop obesity and the associated health risks, the Healthy Hunger-Free Kids Act (HHFKA) was signed into law by President

Computers And Ethics In The Workplace

311 words - 2 pages Computers and Ethics in the Workplace Executive Summary This paper discusses issues with ethics that have derived in the workplace as a result of the use of business computers. The definition of computer ethics is simple; they are a set of moral principles that intend to help with the regulation of the use of computers. Some common problems with computer ethics consist of privacy concerns, intellectual property rights, and the way computers

The Currency And Monetary System In Hk

584 words - 3 pages 论港币存在必然性及合理性 ——探究香港货币金融制度 结题报告 The currency and monetary system in HK The Concluding Report Written by:Xin,Wu Instructed by: Yi, Yang May,2014 - 【摘要】 本报告简单研究了香港的货币政策,金融管理,并且对香港金融风暴以及香港货币制度进行了简单的分析。 【问题提出】 作为全球最大的金融中心之一的香港,同时作为中国“一国两制”地区之一。奉行资本主义制度的香港的金融体系又是如何管理以做到稳定的呢?香港的货币政策与大陆的货币政策又有什么不同呢? 【研究方案】 1、网络(主要了解宏观信息) 2、相关人员支持(咨询人员) 目录 Ⅰ 现存制度现状及分

Alf Money And The Prices In The Long Run And Open Economies

3179 words - 13 pages , inflation rates and costs in the long run. The prices of goods and services are high during inflation. The monetary policy reduces inflation rates by reducing the supply of money in the economy (Singh, 2011). The demand for goods increases due to a large amount of money in an economy, and this leads to increase in price levels. The monetary policy, therefore, reduces the supply of money to enhance or reduce price levels and to curb inflation as well

Social, Legal, And Ethical Issues In The Information Age

5310 words - 22 pages Chapter 5 Social, Legal, and Ethical Issues in the Information Age Teaching Objectives Students should be able to answer the following questions: 1. What ethical, social, and political issues are raised by information systems? 2. Are there specific principles for conduct that can be used to guide decisions about ethical dilemmas? 3. Why does contemporary information technology pose challenges to the protection

Mormons In The 1830's And 40's

4385 words - 18 pages Justin Dosey Mormons in the 1830’s and 40’s The United States of America is said to be an “International melting pot,” inhabited by a number of culturally diverse people. Each and every distinct group has played their part in the development of nation whether ‘twas good or bad. I believe that the members of “The Church of Jesus Christ of Latter Day Saints,” (otherwise known as Mormons) have proved to be crucial to the growth of the U.S.A. in

School And The Time You Spend In It

861 words - 4 pages The time you spend in school. Instead of having kids sitting in school for hours and hours a day I believe that short sweet and simple school days should take over. There is generally a lot of wasted time during the school day and everyone could receive benefits for shorter days. The teachers would have a lot more time on their hands to grade papers. With all their extra time they can devote more time to their students and any help they may

Racial Equality And The Abolition Of Slavery In France

1410 words - 6 pages Racial Equality and the Abolition of Slavery in France When Abbé Sièyes wondered, "What is the Third Estate [or are slaves]? Nothing. What has it [have they] been until now in the political order? Nothing. What does it [do they] want? To be become something…" (65), he could have just as easily spoken of slave's misery rather than the Third Estate's plight. While, his scope was limited, his pains were not. Following their first revolution

How Can The Government Encourage Participation In Sports And Physical Education Among The Elderly And Handicapped?

514 words - 3 pages How can the government encourage participation in sports and physical education among the elderly and handicapped? A handicapped person is one who has some condition that markedly restricts their ability to function physically or mentally or socially while an elderly person may be defined as someone who is old or past the middle age. In today’s society both of these persons are considered disabled. These are people who have had little or no

Similar Documents

Supply And Demand Essay

836 words - 4 pages Supply and Demand Goodlife Management was the only firm in Atlantis that rented apartments. This gave Goodlife Management an advantage in the housing market. Detached rental homes owned by Oakridge Builders were the closest substitute to the apartment rentals. Without a substitute for rental housing in the Atlantis area, Goodlife Management maintained a monopoly in this market. Many factors cause changes to the supply and demand of a

Supply And Demand Essay

501 words - 3 pages Topic: Supply and Demand Julian Johnson Introduction to Business October 14. 2012 Supply and Demand There are several factors, which affect the demand and supply of goods and services, in any given market. Changes in these factors usually shift the demand and supply curves accordingly. A fast food company operating in a given location essentially depends on supplies of fresh farm produce. Consequently, they use the supplies to prepare

Supply Demand In Gas Price Essay

3605 words - 15 pages , distribution costs, marketing costs, and federal, state, county, and local taxes. Gas prices also fluctuate because of oil supply disruptions, refinery disruptions, political factors, demand, and world conflicts like the Ukraine Crisis, Gaza Strip bombings, and now ISIS terrorists in Syria. Demand Determinants In economics, demand is defined as the goods and services people are willing and able to buy during a certain period of time at

Dss In Supply Chain Management And Design

2843 words - 12 pages these raw materials into specified final products and deliver these final products to retailers Supply chain management . . . “encompasses every effort involved in producing and delivering a final product or service, from the supplier's supplier to the customer's customer. Supply Chain Management includes managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and