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Macro Economic Focus

In: Business and Management

Submitted By mixmasterp
Words 786
Pages 4
Over the recent months following the recession, there has been talk about the overall state and well-being of the United States economy. The U.S. economy has been trying to slowly recover from the devastating hit from the last recession. Consequently, there have many successes and failures as the economy tries to stabilize itself. For example, as the unemployment rate falls the inflation rate rises. In examining recent trends in unemployment, gross domestic product (GDP), inflation, and policies used to address the economic health of the U.S. economy I believe the economy is slowly improving. In the text, Essentials of Economics, author Bradley R. Schiller discusses the term full-employment. Full-employment refers to “the lowest rate of unemployment compatible with price stability; variously estimated at between 4 and 6 percent unemployment” (Schiller, 221). Full-employment is also embedded into the Policy Goal in order to keep price stability in order. There are four main factors that influence macroeconomists to maintain a low unemployment rate. These factors include seasonal, frictional, structural and cyclical unemployment. All of these different types of unemployment add to reasons why some workers leave a job, cannot get a job, or job fluctuate due to season. Overall, the underlying point is that the U.S. economy must have a low unemployment to have a successful and productive economy.
The unemployment rate has been progressively decreasing. At the end of February the unemployment rate decreased to 8.9% (BLS, 2011). Also within the month of February, “the U.S. nonfarm payroll employment increased by 192, 000” (TradingEconomics.com, 2011). Many jobs became available in many different fields ranging from manufacturing to health care. With each passing month the unemployment rate decreases I’m confident that over the next couple of years the unemployment rate

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