Aggregate Demand and Supply Models
Social, technological and political changes in the US and around the world affect the U.S. economy today. Even if the U.S. economy presently remains as one of the world’s largest economy, the country is now in deep recession and must
The purpose of this paper is to understand the prevailing economic trends in the US particularly on unemployment, interest rates, and consumer income including the expectations of both the consumer and business sectors. This paper will also discuss the effect of these economic indicators on the aggregate supply and demand and the evaluation of current fiscal policies that were recommended by the government. ...view middle of the document...
President Obama says that “no one who works full time should have to raise their family in poverty” and he plans to raise the minimum wage from $7.25 to $9.00 per hour.
President Obama has introduced legislation for many issues that American families are facing in today’s economy. One issue that has been prevalent recently is the interest rate on student loans. Pursuing higher education means that our children receive their degree with debt that will take years to pay off. This is unacceptable to President Obama. He says that “making it harder for our young people to afford higher education and earn their degrees is nothing more than cutting our own future off at the knees. Congress needs to keep interest rates on student loans from doubling, and they need to do it now.”
Effects on Aggregate Supply and Demand
Supply and demand are a huge part of the nation. Whether it is the suppliers or the goods that are produced and purchased the curve goes up on any scale. By saying this, the cost of our living, goods and anything else we choose to purchase only seem to go up as long as they are being purchased. At times there is a slight decrease in demand. One example for this is gas. Throughout a year gas prices change more than 67%, and only continue to go up. This information was actually asked of by a manager at Maverik gas station, in Nampa Id, named Carol Thacker.
Current Fiscal Policies
The United States economy has always been one that strives for equal job opportunities among its citizens. Within the discussions and at times debates the fiscal policy is one of the primary focuses. The fiscal policy is the planned change that the government spending or taxes to generate or hinder the economy (Colander, 2013). The current president of the Untied States of America, President Obama, had taken the responsibility to work on five major points within fiscal policy: deficit reduction, regulatory reform, health care reform, tax reform, and cutting waste (The White House, 2013).
President Obama signed into law a bipartisan agreement that allows within the next 10 years saves the United States almost $1 trillion in spending. The United States government has researched and review over 580 proposals to lower regulatory cost and federal policies in order to create a 21st regulatory system (The White House, 2013). In other efforts within the fiscal policy the United States of America government has been strictly enforcing the Affordable Care Act to crack down on those that are abusing, wasting, and of falsely accessing Medicare and Medicaid. Tax reform has allowed for everyday citizens that do not have an annual income of more than $1 million pay a smaller share of taxes than other citizens providing tax fairness throughout the Buffett Rule (The White House, 2013). Eliminating wasteful spending is an important aspect of any economy and the United States of America is on a mission to find unnecessary spending including information technology and excess federal...