Aggregate Demand and Supply Model - Economic Advisement Essay

Aggregate Demand and Supply Model Economic Advisement With a nominal GDP estimated at more than 15 trillion it is clearly the United States economy is one of the largest in the world. A person must have lived in a cave underground for the past several years to not know that the current state of the nation’s economy is in desperate need of improvement. Many academic institutions have thought about how the economy arrived at its current state and how can it be restored. Some would advocate not using the same economic policies that created the current conditions of the economy. Their philosophy is that if we stay the current course the economy would somehow miraculously recover itself over a period of an unknown amount of time. These same†¦show more content†¦Consumer Income: Consumer income is an estimate of household income and is the government’s way of determining the median income of families; obviously the income is a key indicator of consumer confidence. According to new data derived from the monthly Current Population Survey (CPS) and ERSI, real median annual household income decreased by 7.9 % between 2010 and 2012, from $54,442 to $50,157 (Smartblog.org, 2012). The current decline in consumer income comes after four consecutive monthly decreases in real median annual household income. The annual household income suggested that the Population Survey report takes into account that some information reflects modifications made as part of annual benchmarking adjustments to compensate for missing data needed to complete the survey. The report also suggests that the economy will continue to struggle slightly despite some encouraging news on unemployment (Smartblo.org, 2012). But it is expected that the median household income will increase by 13 .4% or $56,895 by 2017 as the economy improve. Interest rates: Interest rates are the most important relative prices of an economy. These influence the decisions of investors and consumers. They also determine the level of income and employment in an economy. They are indicators that guide consumers when they should invest and when they should save. Interest rates determine the present and future consumption. If these are set at very low levels in real terms and even worse ifShow MoreRelatedeco3721430 Words   |  6 Pagesstudents with the basic theories, concepts, terminology, and uses of macroeconomics. Students learn practical applications for macroeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this documentRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesOpportunities for OB 15 Responding to Economic Pressures 15 †¢ Responding to Globalization 16 †¢ Managing Workforce Diversity 18 †¢ Improving Customer Service 18 †¢ Improving People Skills 19 †¢ Stimulating Innovation and Change 20 †¢ Coping with â€Å"Temporariness† 20 †¢ Working in Networked Organizations 20 †¢ Helping Employees Balance Work–Life Conflicts 21 †¢ Creating a Positive Work Environment 22 †¢ Improving Ethical Behavior 22 Coming Attractions: Developing an OB Model 23 An Overview 23 †¢ Inputs 24 †¢ Processes