The Economy: Monopolies
Assignment 2: The Economy, Monetary Policyband Monopolies
ECO100: Principles of Economics
When evaluating today’s economic status we must take a look at many different factors. Such as interest rates, inflation and unemployment. When we look at these factors and compare them to the factors of the recession of 2008 we will see that the economy has gotten better in some aspect and some aspect have gotten worse.
To compare now and 2008 we must first take a look at the interest rates. Global-rates.com a statistical website states that the FED gives us a current interest rate of 0.25 %. In 2008 the FED clocked our interest at 3.00 % which is tremendously higher than where we are now. Secondly we must take a look at inflation which is the sustained increases in the average prices of all goods and services (O’Sullivan, Sheffrin, Perez, pg. 276).
In order to fully understand the full differences between our economic statuses now as it pertains to 2008 we must take into account inflation. Global-rates.com also states that inflation is currently at 1.063 % and at this time in 2008 inflation was a whopping 3.936 % which is a difference of 2.873 %. Lastly we must look at the unemployment rates in our economy to really get an understanding of our current economic situation and how it differs from the recession of 2008. With information gathered from the Bureau of Labor & Statistics it states that the unemployment rate in 2008 was 5.8 % for the year. This year we are currently sitting at an unemployment rate of 7.6 % for the year. Surprisingly the unemployment rate was better in 2008 with a difference of 1.8 %. In conclusion this year is better in 2 of the 3 categories with unemployment being the kicker. It seems that our financial structure is better now but our unemployment rates have continued to increase meaning creation has been on a downward slope. One proposal is giving more funding to companies that work in the realm of renewal energy. This is an issue that
ECO100: Principles of Economics
When evaluating today’s economic status we must take a look at many different factors. Such as interest rates, inflation and unemployment. When we look at these factors and compare them to the factors of the recession of 2008 we will see that the economy has gotten better in some aspect and some aspect have gotten worse.
To compare now and 2008 we must first take a look at the interest rates. Global-rates.com a statistical website states that the FED gives us a current interest rate of 0.25 %. In 2008 the FED clocked our interest at 3.00 % which is tremendously higher than where we are now. Secondly we must take a look at inflation which is the sustained increases in the average prices of all goods and services (O’Sullivan, Sheffrin, Perez, pg. 276).
In order to fully understand the full differences between our economic statuses now as it pertains to 2008 we must take into account inflation. Global-rates.com also states that inflation is currently at 1.063 % and at this time in 2008 inflation was a whopping 3.936 % which is a difference of 2.873 %. Lastly we must look at the unemployment rates in our economy to really get an understanding of our current economic situation and how it differs from the recession of 2008. With information gathered from the Bureau of Labor & Statistics it states that the unemployment rate in 2008 was 5.8 % for the year. This year we are currently sitting at an unemployment rate of 7.6 % for the year. Surprisingly the unemployment rate was better in 2008 with a difference of 1.8 %. In conclusion this year is better in 2 of the 3 categories with unemployment being the kicker. It seems that our financial structure is better now but our unemployment rates have continued to increase meaning creation has been on a downward slope. One proposal is giving more funding to companies that work in the realm of renewal energy. This is an issue that
References: Brinkley, J. (2000, April). U.S. vs. Microsoft: The Overview; U.S. Judge Says Microsoft Violated Antitrust Laws With Predatory Behavior. The New York Times, Retrieved from: http://www.nytimes.com/2000/04/04/business/us-vs-microsoft-overview-us-judge-says-microsoft-violated-antitrust-laws-with.html?pagewanted=all&src=pm Bureau of Labor and Statistics (2013). Labor Force Statistics from the Current Population Survey [Databases, Tables & Calculators by Subject]. Washington D.C., Retrieved from: http://data.bls.gov/timeseries/LNS14000000 O’Sullivan, A., Sheffrin, S. & Perez, S. (2012) Survey of Economics: Principles, Applications, and Tools. Boston, MA: Prentice Hall Publishing Summary of the Interest Rates Provided on Global-Rates.com (2013). Central Banks’ Interest Rates. Initiative of Triami Media BV in Cooperation with HomeFinance. Retrieved from: http://www.global-rates.com/interest-rates/central-banks/central-bank-america/fed-interest-rate.aspx