Purchase Solution

Current state of the economy

Not what you're looking for?

Ask Custom Question

1) What is the inflation rate? Is inflation a worry, or are we in a period of stable prices?

2) What is the unemployment rate? Will a high unemployment rate cause deflation? What is the current structure of the labor market? How does the current structure affect the threat of cost push inflation or deflation?

3) What is the growth rate of GDP? Can you find predictions on the future growth rate?

4) What is the income distribution? How has this changed over recent history?

Purchase this Solution
Solution Summary

A discussion of several aspects of the current economy, its elements, and forecasts. References provided for each section.

Solution Preview

1) What is the inflation rate? Is inflation a worry, or are we in a period of stable prices?

The current rate of inflation is lower than recent years. It seems to be holding steady at 1.6%. The rate has remained relatively steady over the past few years after a pretty wild ride of highs up in the 3-4% range (2007 and 2011), to as low as 0.1% in 2008). For the past three years is has shown minimal changes.

As an economic indicator, inflation rates help people determine fast prices are changing, using the Consumer Price Index. Consumers buy now rather than later when prices are rising gently, which is good for the economy. Prices of gas and fuel and food are not included, due to the volatility. Rates are considered good if they remain at or around 2% according to the Federal Reserve. Inflation can also help determine where a country is in the business cycle. When recessions occur, it often is accompanied by higher inflation. Inflation rates are determined on a monthly bases and include the prices on shelter and commodities, however the core inflation rate does not include those prices mentioned previously. Food, energy, transportation, and medical are also major indicators of key consumer prices.

http://www.usinflationcalculator.com/inflation/current-inflation-rates/

http://www.tradingeconomics.com/united-states/inflation-cpi

2) What is the unemployment rate? Will a high unemployment rate cause deflation? What is the current structure of the labor market? How does the current structure affect the ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Economics for Decision-Making: Current state of the U.S. economy

    198828 Economics for Decision-Making: Current State of the U.S. Economy Deliverable Length: 9-12 slides with notes Create a presentation for the Board which examines the current state of the U.S. economy.

  • China a capitalistic or socialistic economy

    The key point is that in a capitalistic economy, the non-labor factor of production is privately controlled. On the other hand in a socialistic economy there is state ownership of capital.

  • Current state of the U.S. economy

    514343 Current State of the U.S. Economy Create a presentation (9-12 slides) for the Board which examines the current state of the U.S. economy.

  • State of National Economy

    125553 State of National Economy Using current information, complete a paper on the state of the national economy.

  • The Current State of the Economy

    536503 The Current State of the Economy Provide an argument to describe the current state of the economy in terms of the following: -The economic goals -The definition of the phases of the business cycle -The key economic variables described in the

  • The U.S. Economy and Union Membership

    Considering the state of the U.S. economy today with regard to the recent recession, how do you think the current economy will effect union membership, and why? 2.

  • Bond prices and the economic

    168713 Given the current state of the economy, and any other factors you believe are important, what do you anticipate will happen to bond prices and yields?

  • Contractionary monetary policy

    The current state of the monetary policy. Wall Street pit. Retrieved from http://wallstreetpit.com/82698-the-current-state-of-monetary-policy The Federal Reserve System (2010).

  • Understanding macroeconomic conditions

    Now you can think of some specific ways that this might happen. If you have been looking for a job, clearly you are affected by the current state of the economy. Perhaps because of the economy, you decided to return to school.

  • Given the current state of the economy and our financial mar

    435091 Given the current state of the economy and our financial markets, it it more desirable for firms to raise money through debt or through equity at this time?

View More Related Solutions