Macroeconomic Condition of the USA in 1996-1999 - Essay Example

Comments (0) Cite this document
There was a period of low unemployment, low inflation, and the GDP kept growing substantially faster than in 1995 (Iceland, pp. 12-57).
In 1997, the economy…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94% of users find it useful
Macroeconomic Condition of the USA in 1996-1999
Read TextPreview

Extract of sample "Macroeconomic Condition of the USA in 1996-1999"

Download file to see previous pages It was a 2.1 increase from that of 1995, at the same time interest rates were low. The unemployment levels were as shown below in the period.
In the year 1998 the economy experienced some of the best macroeconomic results that policymakers there were a tremendous outburst of volatility in the asset market. Although the GDP was above average in the year 1998, there was a consistent decline in growth. The economic condition worsened in 1990 making the economy more adverse (Iceland, pp. 12-57).
The curve indicates the correlation between the quantity of real GDP and price level required by household. In the long run, the average demand curve and short run average curves intersect at a point on the long term average supply curve.
In the presence of contraction policies the aggregate demand curve shifts to the left leading to a reduction in aggregate demand. In this case, price levels will fall but the output is not affected. On the other hand, if it were in the short run both output and price would drop.
The aggregate supply shows how much is provided by a firm and at what price. In the long run, the curve is affected by events that lead to a change in the potential output of the economy. The term aggregate supply refers to the total value of services and goods that a country’s firms produce over a period. In case of a decrease in the long run supply curve, there will be a drop in the price level and an increase in the GDP.
The health of the economy is by three economic indicators that include the gross domestic product, consumer price index and unemployment levels. For the economy to be termed as healthy there is a certain baseline that should be met. For a well-performing economy, the GDP should be growing at a rate of 2-3 % per annum reflecting a real growth pattern. An increase in any rate above 3% is possible but might be due to stepping on employee and environmental rights. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Macroeconomic Condition of the USA in 1996-1999 Essay”, n.d.)
Macroeconomic Condition of the USA in 1996-1999 Essay. Retrieved from
(Macroeconomic Condition of the USA in 1996-1999 Essay)
Macroeconomic Condition of the USA in 1996-1999 Essay.
“Macroeconomic Condition of the USA in 1996-1999 Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macroeconomic Condition of the USA in 1996-1999


... has a direct negative impact on the national saving in the long run. It has been argued that in the long run there are chances that the saving and output are going to fall because the government would try to compensate for the revenue losses through changes in the policy; this may include tax hikes (Francis). However the effects of tax cut are in the long run would vary according to the taxpayers. Works Cited Francis, David R. Effects of the Tax Cut on Saving. The National Bureau of Economic Research. Web. 11 Jan. 2011. Mankiw, N. Gregory. Principles of Macroeconomics. 5th ed. Cengage Learning. Riley, Geoff. Fiscal Policy Effects. Tutor2u, 2006. Web. 11 Jan. 2011.... By utilizing "impact", "time", and "population affected", how Washington...
2 Pages(500 words)Essay

Current Macroeconomic Situation in the USA

...? Running head: Macroeconomic Situation in the US Current Macroeconomic Situation in the US Insert Insert Grade Insert 06 June 2012 What is the current macro-economic situation in the United States? The current macro-economic situation in the United States is in a state of hang-over position and, therefore, it is premature to state that the recession of 2008 is over. Presently in the US, there is slow growth and escalating unemployment; the main sources of apprehension. However, the FED will maintain the funding rate pending 2014, which is a giant push. It forecasted that the economy will develop more than 2% the following year, which is good news. The currency has not changed much in comparison to the Yen (OECD Publishing, 2012... ). The...
4 Pages(1000 words)Essay


...? Macroeconomic Contents Introduction 3 Question a 3 Question b 4 Question c 6 Conclusion 8 References 9 Bibliography 10 Introduction High terms of trade are the characteristics of the current economy of Australia. It can be witnessed that the terms of trade has fallen in the recent months yet the rate has been historically high and volatile. The level of real income rose as the result of high terms of trade as well the inflation rate got reduced. The ratio between the prices of exports and the prices of imports are regarded as the terms of trade. With high rate of terms of trade the country will be able to obtain higher imports with relatively fewer amounts of exports. The volatility in the expenditures made by the consumers can... . The...
6 Pages(1500 words)Essay

MACROECONOMIC Australia. The carbon pricing was introduced and made functional from July 2012. The pricing is to take effect in the form of tax that is to be put on the emissions of carbon. The pricing is meant to cut the emission of carbon in the Australian environment. These pricing is directed toward the level of carbon in the outputs and the inputs of product from the industry. The tax on carbon will have quite an effect on the macroeconomic environment in the sense that the tax might be passed down to the consumers who are the Australian people. The effect can be felt in the price of commodities. The effects of carbon pricing The Australian society is a very large consumer of electricity. This electricity is mainly produced by...
4 Pages(1000 words)Essay


...? MACROECONOMIC Contents Fiscal Policy 3 Instruments of fiscal policy and the effectiveness of the different measures in stimulating aggregate demand3 Fiscal policy stance 2012 (Australia) 5 Appropriateness of the fiscal policy stance 6 References 8 Fiscal Policy The term fiscal policy refers to the use of the revenue of the government as well as the spending for the welfare of the economy. The revenue of the government can be arranged through a variety of ways like taxation, sale of fixed assets, borrowings and consumption of fiscal reserves. The government try to use the fiscal policies to stimulate the level of aggregate demand in the economy (Kopcke, Tootell and Triest, 2010, p. 2). The objectives of economic growth, stability... for...
3 Pages(750 words)Essay


...? Australia: Fiscal Policy Australia: Fiscal Policy Answer The government’s policy related to its spending and raising revenues is called fiscal policy. It associates matters of treasury and other public finance (Vitek, 2012). In other words, fiscal policy can be referred to as the method to raise or spend the government’s revenue in order to attain sustainable economical condition (Vitek, 2012). To cope with instable economical conditions (inflation, unemployment, and deflation) the government makes appropriate decisions to regulate the flow of cash and credit in an economy either by taking loans from the international financial bodies or by reducing the public tax burden (Perry, et al., 2008)....
4 Pages(1000 words)Essay

Macroeconomic to investors in the market. This would then finally help in augmenting the level of income in the economy in the long run (Arnold, 2008). Reference List ABS, 2013. Australian Bureau of Statistics. [online] Available at: [Accessed 30 August 2013]. Arnold, R. A., 2008. Macroeconomics. Connecticut: Cengage Learning. BEA, 2012. U.S. Economic Accounts. [online] Available at: [Accessed 30 August 2013]. BLS, 2012. Labor Force Statistics from the Current Population Survey. [online] Available at [Accessed 30 August 2013]. DFAT, 2013. Department of Foreign Affairs and Trade. [online] Available at [Accessed 30...
5 Pages(1250 words)Essay


..., in the hope that the fluctuation is temporary, and the situation will improve in the long run. Increased imports result because of a weakened sterling, which makes imports cheaper than domestic products, and it makes business sense for investors to import substitutes for domestic products since the imports are more affordable to consumers. Figure 3: Graph of major macroeconomic indicators in the United Kingdom and the OECD (OECD, 2011). This graph shows that United Kingdom is a major contributor in the poor economic situation in the OECD countries. The shaded region indicates the maximum and the minimum values of the indicators in OECD countries. However, this does not mean that a deficit is unfavourable, or that...
12 Pages(3000 words)Essay


...environmental measures in avoidance of natural disasters. Allowing a lenient immigration policy is perceived to reduce employment opportunities to resident citizens. However, this issue is more often a matter of social justice and existing illegal immigrants settle for unsatisfactory working conditions. An increase in population concurrently leads to a parallel increase in federal expenditures. The same assessment is true for engaging in war which accounts for large budget deficits and public debt since it reallocates economic resources for war goods such as military spending for their personnel and armaments (ibid 237). References McConnell, Campbell R., and Stanley L. Brue. Macroeconomics Principles,...
1 Pages(250 words)Essay


...Macroeconomic Situation of US Macroeconomic Situation of US Since the start of the recessionary period of 2008, US have been trying to recover from several macroeconomic issues. Towards the end of March 2012, the unemployment rate of US stood at 8.2%, although US successfully created over 120k jobs in a time period of 7 months but it is still below the targeted increase in employment rate which is set at 200k which will help US solve its unemployment problem (OECD, 2012). The consumption levels and the rate of GDP is even increasing but at the rate of which a tortoise travels, this is because of increased oil prices and damaged confidence of the investors, while the Federal Reserve has...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Macroeconomic Condition of the USA in 1996-1999 for FREE!

Contact Us