Introduction. Cindy Is Debating On Whether Or Not She Should

The unemployment rate has dramatically increased over the last several months. This increase has created many complications for the American people. Although the United States economy has created over 7 million jobs, there is still a long way to go until the economy is back on track.

Webster’s dictionary defines inflation: as a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services. During the last 10 years we have seen and felt the effects of inflation. Services and goods have gone up in price, but the minimum wage for most Californians stayed the same for a number of years. Inflation is a key factor that has affected tuition costs in most universities and has helped contribute to the steady rise. Public and private schools each typically have their own college inflation rate, which

go through cycles of expansion, recession and recovery. Monetary and fiscal policies can affect the timing and length of these cycles. In the expansion phase, the economy grows, businesses add jobs and consumer spending increases. At some point, known as

Another important factor to consider when starting a business is the “business cycle.” The business cycle is the fluctuations in economic activity that an economy will experience over a period of time. We have experience may business cycles in the United States. We refer to them as expansions and recessions. In an expansions, the economic outlook is good and growth happens, without inflation. Recessions are when the economy is shrinking and the determination factors for a recession include unemployment, low industry production, decrease sales and lower incomes. Since 1854, The United States has experienced 33

1. Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis.

While there are expectations of a yearly gain of nearly 2.3 million net new jobs, the unemployment rate is still very high i.e. around 6.5 percent. The lower-than-expected job growth is fueled by various factors including government hiring, weather, and Obamacare. Actually, similar to December, January had a lower-than expected increase in job opportunities since only 113,000 jobs were created. However, the rate of unemployment still reduced to 6.6 percent in this month despite of the growth in labor force. The current rate of unemployment is the lowest in U.S. since the 2008 recession because more people are leaving the labor force instead of finding jobs.

As of February of 2016, “the unemployment rate in America was recorded at 4.9 percent, unchanged from the January rate and remaining at its lowest

The Business Cycle is “…the "ups and downs" in economic activity, defined in terms of periods of expansion or recession” (Dr. Econ). Expansion is the period in which employment, production, sales and income increase. Likewise, the contrasting contraction is when the actions above decrease. In order to keep track of the fluctuations of the US’s business cycles troughs and peaks, the National Bureau of Economic Research was created. The NBER is comprised of a group of economic researchers currently led by president James Poterba. The members are usually specialized in the field of business-cycle research, and are chosen by the president. The NBER was founded in 1920 as a private non-profit “…non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals.” (http://www.nber.org/info.html). The NBER dating committee was formed in 1978, and plays an important role in the US as an examiner of broad measures of economic activity, and the most reliable source of the beginning and end of recessions in the U.S. This is accomplished by gathering as much data on a given period of economic activity.

The forecast for US GDP for the next five years is positive with an average rate of 1.94 percent. From 2016 to 2020, the growth of US GDP as per the forecast will be 2 in 2016, 1.8 in 2017, 1.9 in 2018, 2 in 2019 and 2 percent in 2020 respectively (United States | Economic Forecasts | 2016-2020 Outlook). According to the actual or aggregate forecast for the next five years, US GDP will be $ 18,295 billion in the year 2020. Therefore, the trend is positive, and US GDP will continue to rise gradually.

The part of the business cycle I think we are in today is Prosperity. One reason is GDP is high. Also, Unemployment is low, so that means more people have in the country. Lastly, inflation is at a steady pace. Not to high or low. That is why i think we are at prosperity to this date in

In contrast, some believe that renewable energy is a key factor involved in helping the economy to grow. Many jobs are created in the manufacturing and running of renewable energy plants. The renewable energy and energy efficiency technologies created 8.5 million new jobs and $970 billion in revenue in the year 2006 (Langwith, “Renewable Energy is Economically”). The American Solar Energy Society says by 2030 it could generate up to $4.5 trillion in revenue for the U.S and create 40 million new jobs. This would represent one in every four jobs (Langwith, “Renewable Energy is Economically”). This shows how vital it is to get renewable energy companies in the U.S. It is important to build a stable economy again and do it all while helping the environment.

The current rate of GDP growth, according to the Bureau of Economic Analysis, is 2.7% (for Q3), and it was 1.3% in Q2 of this year. This rate reflects relatively slow growth, with challenges remaining in the domestic market and with sluggishness in Europe suppressing exports to that region. The rate of GDP growth is predicted to slow to a decline of 0.5% between Q4 2012 and Q4 2013, the US re-entering recession, according to the Congressional Budget Office's projections. These projections are based on the provisions of the Budget Control Act being enacted, though any observers are doubtful that this will occur.

In the United States of America the National Bureau of Economic research determines cycles of fluctuations in economic activity known as business cycles. According to the NBER, “there have been 11 business cycles from 1945 to 2009” (Investopedia.com). The average length of a cycle lasts about 69 months. The average expansion (the economy is growing in real terms) during this period “has lasted 58.4 months, while the average contraction (the economy is contracting, as measured by decreasing of industrial production, employment, personal incomes, and sales) has lasted only 11.1 months” (Investopedia.com). The most recent financial crisis in the United States of America is the Great Recession, which began in December 2007 to June 2009. This recession

In the recovery, the economy is growing. It is commonly indicated by a bull market. The recovery is the increase in the rate of economic activity established by a moderate to low unemployment percentage, towering development, and swelling prices. The next phase of the business cycle is the peak. The peak is the most desired stage for it is the superior point of the cycle. During this stage, the increased consumer confidence translates into higher levels of business activity. The peak is, “When the economy is overheated, and is in a state of irrational exuberance,” (Inc.com) In other words, the peak is the point at which the economy is as robust as it can get. Following the peak in the business cycle is the recession. The recession is when the economy is on the decline and jobs are being lost, unemployment rates soars, and production is slowing. It identifies the end of a growth interval in the business cycle. Often,

The economy, just like prices of commodities and services, never move in straight lines, but trend upward or downward. Peaks are the tops of the cycle, troughs the bottom. The swings up and down are the central concerns of macroeconomics, particularly the rise and fall of GDP, which tends to mirror changes in other economic indicators. In the economic cycle, though, there are four phases: peaks, recession, troughs and recovery. We can envision this much like a roller coaster, since