Nt1310 Unit 2 Assignment

Improved Essays
1.
In this letter the overall message is to say that the economy is currently becoming better and is predicted to continue growing. The word that is used many times throughout this letter is “slack”, which they are using in the case that there is room to grow within the economy. Based on what I know and correlations between the current state of the economy and their predictions of the economy, I agree with what is stated in the letter although in most cases their number are off. One broad indicator that shows evidence of this are the spending habits of household. These habits can be seen within housing startups and vehicle sales. These two markets are widely affected by interest rates and the rates of unemployment. When these two markets
…show more content…
These two markets give a good idea of how confident and willing to spend households are. Housing startups have increased from 1.00 million in 2014 to a current 1.13 million and are expected to increase to 1.23 million units in 2016. With houses being one of the largest expenses to a household housing startups are a great way of measuring the economy. Vehicle sales have also been increasing from 16.44 million in 2014 to a prediction of 16.8 million at the end of the year (currently at 16.3 million) and are predicted to increase to 17.3 million in 2016. Both of these purchases are large enough to households to show the confidence that they have within the economy therefore they are great indicators for how the economy is …show more content…
In the letter it the real GDP in 2015 was predicted to be at only 2.6% growth but if we look at the actual number for real GDP growth it was at 3.9%. With this being said GDP is still expected to grow into the 2016 year. This can be seen true with production outputs rising from a low of -1.5% at the start of 2015 to the 3.3% now. The one thing that could hinder the growth of GDP could be the growing strength of the US dollar in foreign countries. This strengthening of the US dollar will cause exports to go down and imports to go up. This will cause the GDP to go down due to less production happening. This is one of the only things stated in the letter that could possibly hinder the growth of the economy. Overall, this Fed memo says that the economy is still on a rise since the recession with slack in many different markets. This can be seen in the growing GDP, the increasing housing starts and vehicle sales, lowering inflation, and the overall strengthening of the economy. I do agree in what this letter is trying to say based upon what I know in economics, what the economy is doing currently and how it correlates with the Fed

Related Documents

  • Decent Essays

    Nt1310 Unit 2 Assignment

    • 463 Words
    • 2 Pages

    During my job as a problem solver issues are brought to my attention that have to be actioned straight away where there is no time to ask questions. A problem was brought to my attention that we had reports of a product that had infestation problems, the product in question was Bird seed. I myself had to look into this straight away as it was a problem that would immediately impact Amazons customers. I first had to locate which product this was and would ask the associate who brought this to my attention to show me the location. After inspecting the product it was found that there were small black creatures crawling around inside the bags.…

    • 463 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Nt1310 Unit 2 Assignment

    • 297 Words
    • 2 Pages

    That greats, did you do your Level 2 through us or elsewhere? Where are you from Corey, and where is the Rossignol dry slope you are hoping to work at? As far as I am aware, and I have CSIA L2 and park certification, I am able to instruct and be insuranced when I work for a ski school. Different ski schools around the world may have different policies and may only except certain qualifications at a set level. “CASI's insurance policy only covers CASI members while teaching and riding on a snowboard”…

    • 297 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    On the above diagram because AD has decreased to AD1 the price level has also decreased to P2. This has therefore reduced inflationary pressure. This is beneficial for the UK economy, because exports will increase due to the average price of goods and services manufactured in the UK decreasing. As a result employment may increase in the private sector as stated in extract C because private sector will invest in capital to increase supply. This is beneficial for the UK economy because the UK’s balance of payments on current account will decrease due to an increase in exports.…

    • 784 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    R. David Ranson addresses the failure of the Federal Reserve Bank. He states, “The ultimate test of its role as overseer and regulator of the commercial banking system met with a very poor result.” (Ranson 407). Ranson is a critic of the Federal Reserve and its policies. Milton Friedman, in concurrence with Ranson, claims “If Congress had been in control of monetary policy, you would not have had the Great Depression.”…

    • 994 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    As humans, we tend to be massive consumers, we buy anything that we can buy and sell anything that we can sell. Money is our master while the people are its slaves, we listen to what the markets have to say and follow what everyone buys. This is something that people who don’t support the “Buy Nothing Day” would say. Buy nothing day is a day where people literally buy nothing to cause awareness of excessive consumerism. But in all honesty people need to see the good in things, and the good of consumerism is that there is a smaller gap between the poor and the wealthy, people only buy things because they need to, and finally it helps the growth of the economy.…

    • 538 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Economic growth is imperative for a nation. According to Scott Gamm article the Federal Reserve, the stock market has proven to acclimatize and intensified at a growing rate of two-hundred percent in the market since March 2009 as a result of the Federal Reserve lowering interest rates to pretty near zero, and purchasing an abundance of bonds from banking establishments implementing a technique known as quantitative easing. As an illustration, lowered interest rates had been implemented to assist big and small businesses to borrow money, which has resulted in companies investing back into their businesses and hiring a greater quantity of employees. Also, the growth of the market has been contributed to the Federal Reserve purchasing an abundance…

    • 227 Words
    • 1 Pages
    Improved Essays
  • Decent Essays

    Over the last year the economy has risen by over 2.9% due to some of the President's policies that he has pushed for since taking office. The most recent tax reform that the president pushed for and got past has already seen an increase in the economy. With people being able to save money on taxes it allows them to spend more which puts more money into the economy. Some companies have issued bonuses to their employees which is allowing them to in return spend it in the economy. When people have extra money laying around they tend to spend it and invest it in the economy.…

    • 326 Words
    • 2 Pages
    Decent Essays
  • Great Essays

    The Great Recession was caused by a number of different factors and the effects were abundant. With so much disagreement on what truly caused the recession, it is apparent that it cannot be pinpointed to one single event or action, but rather a number of factors that set off this devastating economic event. The recession can be blamed on a combination of factors such as deregulations by politicians, AIG, the S.E.C, and many others. The effects of the recession were felt by homeowners, banks, and many working Americans as the economy declined, leaving numerous drowned in debt.…

    • 958 Words
    • 4 Pages
    Great Essays
  • Great Essays

    Major Life Decisions Student loan debt, like all forms of debt, can influence various decisions such as starting a family, buying a house, and retiring. Since children are one of the largest expenses one can have, many people wait to start a family until they are financially stable. This is one of the reasons why the average age of first time mothers has increased from 21.4 years in 1970 to 25.6 years in 2011, according to the National Vital Statistics Report released by the Centers for Disease Control and Prevention (CDC) (Martin, Hamilton, Ventura, Osterman, & Matthews). In addition to couples having children at older ages, smaller families are becoming more common. American women are producing a historically low rate of 1.9 children during…

    • 1086 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Firstly, the expansionary fiscal policy, this consists of the government increasing their spending or decreasing taxes (Blanchard et al, 2013:92). Therefore, the fiscal policy will result in an increase in output thus, shifting the IS curve to the right. As a result of the increased government spending, the interest rates will increase and so will the real exchange rate (see Figure 3). Moreover, there will also be an increase in consumption as consumers will have more disposable income due to the decrease in taxes. One could argue that, the effect on the investment is unambiguous as the factor relies not only on interest rates but sales as well (Blanchard et al, 2013:93).…

    • 907 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Housing Market Bubble Case Study

    • 1229 Words
    • 5 Pages
    • 10 Works Cited

    During this expansion of the market Federal Reserve Chairman Alan Greenspan was worried that the country could face a recession or server downturn in the economy. From this information the Federal Reserve began cutting interest rates down to as low as 1%, and kept them at this low rate until 2004. This was a policy taken by the Federal Reserve to keep money in the economy through cash and savings. The interest rate was also kept low, because those with the adjustable mortgage rates, which fluctuate with the market. This also kept more spending in the economy to keep the economy afloat according to the economic principals behind this decision.…

    • 1229 Words
    • 5 Pages
    • 10 Works Cited
    Superior Essays
  • Superior Essays

    Hannah Overly Professor Hale April 22, 2016 Final Paper A Look into the Principles of Macroeconomics: Project Paper Q: What is the gross domestic product? A: Gross domestic product (GDP) is the total market value of all final goods and services produced within an economy in a given year. This is also commonly referred to as total output (O 'Sullivan, 100).…

    • 1417 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Right now, Americans are debating whether or not the “American Dream” is dead. Citizens are worried about the economy, the political system and their futures. In the essay the American Dream: Dead, Alive or On-Hold by Brandon King, he explains how the American dream is still alive to this day. King believes that people need to work towards the American dream instead of expecting it to be handed to them. The “American Dream” is currently dead, waiting to be revitalized.…

    • 948 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The election of 2016 has notably been remarked as, “worried”, “Joke/ Bad Joke”, and “Messy” by Americans describing the election in one word from the Huffington post poll. Townhall Media published, “Some people seem to think that Donald Trump has great abilities because he is a billionaire. But being born rich and getter richer is not exactly a Horatio Alger miracle.” trying to close small minded voters. Townhall Media even wrote, “How many scandals can one presidential candidate have before they 're automatically disqualified from running?”…

    • 963 Words
    • 4 Pages
    Great Essays
  • Great Essays

    3. Rationale/Executive Summary 3.1 Background of my division The Mr Price Group Limited division that I have chosen is the apparel retail division, also known as the clothing division of Mr Price. My reason for choosing the apparel division of Mr Price instead of the Home or Sport division is because the apparel sector is a fast fashion retailer and has generated a strong brand with well-known corporate social responsibility programmes. The target market of the apparel division is young and vigorous customers, mostly females between the ages of 15 – 35, who are in the LSM income groups.…

    • 1788 Words
    • 8 Pages
    Great Essays