Week 3 Individual

In: Business and Management

Submitted By marie2011
Words 1583
Pages 7
Economic Factors that Influence Aggregated Demand and Supply
Amanda Brickey
ECO/372
February 06, 2014
Ed Mendicino

Economic Factors that Influence Aggregated Demand and Supply
Having a solid economy is not a simple task, however possessing the ability to modify and create new ways will make for a prosperous economy. Many factors affect the economy in substantial ways. Within this evaluation of the U.S., these factors will be explained, give an overview of the current state of them, and an analysis of how they affect aggregated demand and supply. These factors include unemployment rate, expectations, and interest rates. Additionally, a set of recommendations for government spending and taxes will be offered based off the economic factors current states.
As of December 2013, according to bureau of labor and statistics, unemployment average is 6.7%. Across the U.S. however some states rate has increased while others had decreased. Currently 39 states had decreases, two states had increases, and nine states had not change from November 2013 to December 2013. For most states, the ongoing lower rate is not a shock as it has continued to decline since 2009 when President Obama took office and signed in the Recovery Act and the Reinvestment Act. Since then the economy has gradually came out of the recession of 2008. Over 7.2 million jobs have been created in the past 40 months by businesses and the auto industry and American manufactures added over 500,000 jobs since January 2010. With the help from government bailouts, the Recovery Act, tax breaks for the middle class and over 93 billion in loans for 166,000 small businesses unemployment has finally started to decrease as Americans climb out of the recession of 2008. Unfortunately, since December 28, 2013 over 1.3 Americans have lost their benefits and have been put on hold for emergency unemployment benefits…...

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