Current Economic Analysis Essay

1991 Words8 Pages
Current Economic Analysis Economics Define unemployment? Provide an example of the three types of unemployment. Which type of unemployment is most problematic and why? What type of unemployment problem(s) does the U.S. currently have and why? What is a possible solution to the unemployment problem(s)? Unemployment is the failure of a person to find jobs. (Schiller, 2006) This means that an unemployed person is one that is capable of working and is actively seeking for a job but is unable to find employment, which means that, this person is an active member of the labor force in search for job opportunities but unable to find one. This excludes full time students and homemakers who are not vigorously looking for jobs. Unemployment…show more content…
Example of that would be a layoff and cutbacks resulting from a recessionary economic phase such as the current trend at the Florida school system where they are laying off teachers because of budgetary cuts. Cyclical unemployment is the most problematic due to the general decline of the gross domestic product which means the current economy is weak. Currently, in the United States, the household, business, and government sectors are buying fewer goods and services. This is causing a slowdown in the economy. As a result, there is will a significant increase on the cyclical unemployment. There are several possibilities in order to solve the unemployment problem. The Government needs to try to create demand in the economy. It could: - Give grants to businesses to produce goods - Cut interest rates to encourage spending - Cut income tax to encourage spending ************************************************************ What are business cycles? What are some of the causes of business cycles? Where on the business cycle would you place the U.S. and why at this point in time? What are some current economic policies President Bush has used to try to improve the country’s economic condition? The business cycle is a predictable long-term pattern of alternating periods of economic growth and decline (recession). This periodic up-and-down movement in
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