Inflation

as the interest rates, and inflation, that the federal reserve can essentially control. Interest rates are changed based on the type of output gap affecting the economy. The general rule is that higher interest rates represent an expansionary gap, while lower interest rates represent a recessionary gap. During this recession of the 1970’s in the U.S., interest rates decreased by very little, and the Federal Reserve increased the money supply causing high rates of inflation. This created a…

change the policy interest rates because she feared risks of worst economic stand for the United States if there were any changes done at that time. She stated that not making changes until further progress in the labor market would result to the inflation rate going back to 2% by the year of 2018. Ever since this speech I followed Ms.Yellen online and kept a close look at further decisions…

Microeconomic variables can be used to predict how the economy will perform, both in the short and long run. Today, businesses have to make decisions in a complex environment. They depend on microeconomic variables when making decisions, which are drawn from data to make critical choices which play a critical role in the success or failure of the business. Therefore, the currency and reliability of information used by businesses when making these decisions affect the success or fail of…

Inflation did not rise, and the period of economic growth during the 1990s continued. Then in 1999 and 2000, the Fed was concerned that inflation seemed to be creeping up so it raised the federal funds interest rate from 4.6% in December 1998 to 6.5% in June 2000” (Monetary Policy and Economic Outcomes, 2014). “The U.S. economy…

economy, pushing interest rates to their lowest, even after inflation rates started to rise in 2014. This caused a boom to be created by monetary inflation. In December 2007 on the other hand, caused the great recession. A period of economic financial turmoil not seen in the U.S. since the great…

Multiple factors come into play when determining the status of a nation’s economy. Some of these key factors include business cycles, unemployment, and inflation. Because the business cycle is an aspect of the economy that is constantly changing and cycling, we must constantly monitor and follow the levels of the economy. Unemployment and inflation are two aspects of the economy that are better when the numbers are low. The points and figures that I have listed within this report…

response to a slowdown of the Australian economy as shown by the downward trend in monthly GDP growth, decreasing trade scale and lowering of commodity prices. The factors driving the decisions made by the RBA would be the high currency rate and low inflation rate. 1. High currency rate In 2011, the AUD exchange rate was over 1 AUD/USD and has been historically high. Due to the slower growth of…

Apple Incorporated, founded by Steve Jobs, Steve Wozniak and Ronald Wayne, is an international technology company based in Cupertino, California. Established April 1st 1976 as Apple Computers, Jobs, Wozniak and Wayne aimed to deliver personal computers to a mass audience (Richardson, 2008:online). However, Apple Computers shifted its focus from personal computers to consumer electronics, computer software and online services. This was reflected in their name change on January 9th 2007. Their…

UNEMPLOYMENT Definition: Unemployment refers to a situation where individuals are willing and able to work but are unable to secure employment and therefore labor resources are underutilized. Measurement of Labor Market Performance The Labor Force Participation Rate refers to the percentage of the population aged 15 and over that is either employed or unemployed, and is currently 64.8%. Weaker demand for labor and below average wage growth has contributed to a cyclical ‘discouraged job seeker’…

It’s a common saying that you shouldn’t “fix what isn’t broken” and I want to prove that these decisions were very self-interested by the elites of the governments, and were made on behalf of personal monetary gain by the wealthy. I found some statistics that support my argument that Latin America was much better off before the United States jumped in, and the choices made by a newly elected official were to his benefit, not to the benefit of the citizens. When looking at something very…