Macro Article Analysis Research Paper Example | Topics and Well Written Essays - 750 words

Macro Article Analysis - Research Paper ExampleThe key economic elements are of unemployment include the government spending, rising prices and reaping targets, private investment, interest rate, consumption and budget deficit. The economic factors could be related to unemployment in a number of federal agencys. Government spending can be used to increase output in the economy but sometime growth creates inflation. Inflation is an evil that has to be avoided as it is an indirect way of burdensome people when prices of commodities are high. Government therefore has inflation targets in relation with growth targets that must(prenominal) be met in order to help its citizens afford to barter for and consume products and services in satisfaction of their needs. The government would be most interest in raising GDP growth as a way of increasing unemployment rate for its people and which would have the effect of increasing the purchasing power of its citizens. To increase the output, t he same can be done by increase private investment, consumption spending and net exports. However at the present the US government is still suffering from budget deficit which represent accrued result of higher consumption level than income or low saving rate in the past.2 To influence increase private spending, interest rate whitethorn be made low by monetary authorities but in the case of United States, it is already very low and yet growth in the economy at pre-crisis level is not fully forthcoming based on the article.3The graphical analysis of the paper could be understood using the AS-AD model4 where the government could actually manage growth in the economy while attaining desired macroeconomic targets like the promotion of unemployment. To increase growth, government must be able to shift aggregated demand (AS) curve to the right as shown in Figure 1 below. However to do the same there must be increased government spending, private investment, consumption, and net exports.5 Given the present situation of the economy