Aggregate Demand and Supply Models
The US economy is highly dynamic and subject to a wide range of economic forces. Based on the latest economic data, our learning team will analyze the forces that drive the economy of the United States. The analysis will cover the following topics:
• Macroeconomic topics related to unemployment, expectations, consumer income and interest rates
• Factors that control the aggregate demand and supply in the United States
• Government leaderships choices regarding
• Additional recommendations based on Keynesian and Classical model perspectives.
Unemployment rates fluctuate when the supply and demand for human resources are out of balance. The supply and demand are a result of the interaction of economic, policy and structural factors. Economic factors affect both supply and demand. The demand for goods and services increases production which results in the demand for workers, increasing the employment rate. The common thought among economists is that market-driven economies move in cycles and when they drop below certain levels unemployment may result. The moving of production from high wage countries to low wage countries is another factor that increases unemployment. A declining manufacturing sector will result in not enough jobs to go around along with third world competition. While new jobs are being created in the technology and service sectors it is not enough to make up for the amount of jobs that have been lost due to moving the manufacturing of goods out of the U.S.
Structural factor are those that are affected by the aging of the population, migration patterns, skills set available, environmental regulations the technological changes. Some individuals are not able to take advantage of job opportunities because they lack the