Leadership style of candidates J.B. Davidson and Jerry Popovich

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Aggregate Demand and Supply Models
As economic advisors to the U.S. President, we have evaluated the current state of the U.S. economy. There are recommendations we have provided to improve the economy. Our recommendations include the evaluation and analyzing of four economic factors; unemployment, expectations, consumer income, and interest rates and how each affect aggregate supply and demand.
Unemployment
Unemployment recently has been a major problem in the United States. We have to get our abled workers back to work. Current information from the U.S. Department of Labor in October 2012 reports that the unemployment rate was at 7.9 percent. To help solve some of the problems with unemployment, we recommend that government
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Unfortunately, in this day and time the U.S. is losing jobs. With the increase in government spending and the growth of the deficit, we are experiencing some challenges for the near future where inflation is out of control, people out of work, and the impact on consumer income.
Recommendations on consumer income are one; do not give any more bailouts. Do not bail out banks or financial institutions with taxpayer’s money. This decreases consumer confidence, therefore lower consumer spending. Two enforce immigration laws to ensure taxes are paid on wages earned in the United States. Also lower taxes do not raise taxes. Create training programs that will put people on government assistance, without skills to work and make it a requirement. Finally ensure citizens are paying their taxes not just the 1 percent.

Interest Rates
The Federal Reserve is responsible for maintaining oversight of the United States monetary system. Interest rates are a tool used to maintain the stability of the U.S. dollar. Interest rates play a role in aggregated supply and demand. When aggregated demand curve slopes, it is because of the interest rate. When the price level decreases demand increase, also the purchasing power of money increase. This could leave people with more cash to deposit in banks. Banks having more money deposited tend to lend more money to investors.

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