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Unemployment Rate Unemployment rate in a nation can tell how well the nation is doing economically. Unemployment rate has both positive and negative effects on the economy. It also impacts the governments ability to generate income through taxes. It can impact positively where the unemployment rate is low, indicating an economic boom. On the other hand, negative impact arises from high unemployment that indicates poor economic conditions for the country in general. Currently, the United States is experiencing a slow recovery from the economic recession and over the years it seems the recession is subsiding giving way to economic growth. Data showing monthly unemployment percentage has been on a downward trend with some fluctuation from month to month. The unemployment rate in the United States increased to 6.70 percent in February 2014 from 6.60 percent in January 2014. In December of 2013 dropped to 6.7 percent, the lowest since October 2008 ( United States Unemployment Rate, 2013). However, the improvement in unemployment rate may not be driven by increased employment. It could be due to long term unemployed workers giving up on the job search and leaving the job market entirely. The unemployment rate has an effect on the aggregate supply and demand. Unemployment means that fewer people have disposable income to spend on goods and services (zhang, 2014). Lack of spending from the consumers makes it difficult for business to thrive and expand, which reduces economic growth (Zhang, 2014). Consumers are no longer spending money leading to a decreases in demand for goods and services. When there e is a decrease in demand the businesses and supplier lower their supply of goods and services. This in turn impacts the economy, which spirals in an economic recession. Fiscal policies that are currently being recommended by government leadership to reduce

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