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Aggregate Demand and Supply Models

Option 1: Economic Advisement Paper

* Unemployment - Analysis and Recommendations A review of the current state of ‘unemployment’ shows that as of March 16, 2013, unemployment insurance initial claims are 336,000, with a current unemployment rate of 7.7% (dol.gov). Additionally, the consumer price index is up .7% (dol.gov). The most updated statistics for payroll employment shows that more than 236,000(p) as of February 2013, with average earnings up $.04 (dol.gov). For most employers, the average merit or annual pay increase will be about .04% or higher this year if the economy continues to show improvement. However, the rate of unemployment is still a great concern. The current rate of unemployment is reflective of ‘previously employed workers’ who have found themselves out of work. We must not lose sight of the number recent graduates and other working age Americans who are still unemployed.
Additionally, current statistics reveal that the metropolitan cities with the highest gains in employment increases during the year were: * “New York-New Jersey area with (+153,000)” * “Houston-Sugar Land-Baytown, Texas (+118,200)” * “Dallas-Fort Worth-Arlington, Texas (+109,400)” * “Los Angeles-Long Beach-Santa Ana, Calif. (+104,400)” (bls.gov) In contrast, the producer price index indicates that the GDP is up by .7% (dol.gov) in the United States which means that our economy is still showing signs of a stronger recovery. The population growth in the United States is the highest it has ever been which mean that our per capita real output is still shrinking. However, when we consider our national rate of unemployment, more is better and a growing economy is certainly a positive sign. Our team believes that more still needs to be done. We recommend the creation of new jobs that helps eligible...

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