Macroeconomic Analysis

Introduction

Macroeconomic analysis on the unemployment picture and why did the U.S. unemployment get so high? “According to one new study, the private sector in the United States has lost 10.5 million jobs since 2007. The U.S. economy lost 125,000 more jobs during the month of June. Approximately a million frustrated American workers have simply dropped out of the employment market altogether over the past two months.” (Michael Snyder)

That one theory that the author made above and it looks as though those numbers do add up, because by the look at that forecast it leaves me to believe that small businesses are learning to produce product with less capital and labor, which means less employees, which also adds up to more unemployment. I believe small business is the heart of American business and it really dictates the main stream numbers of the U.S. work-force. Macroeconomic analysis focuses on three things, first there’s the national output that is measured by gross domestic product (GDP), unemployment and inflation. The analysis of the GDP will determine if consumers have enough money to buy the products they need or want. GDP will also determine if the products will sit on shelves and get old and outdated.

Recommended Fiscal action

In the case of unemployment fiscal policy is usually demanded as sort of a quick-fix in order to kick-start the economy, and the first resort is always from the government. At the highest level of the government they had to put their heads together and decide if they must cut taxes or increase spending in order to stimulate the economy. When dealing with a fiscal policy mater the country cannot expect a quick-fix like I mentioned at the opening of my statement because it is slower to get a plan started through the government, because first the Congress and the President must agree on what should be done and today we have a gridlock in Congress. If the government didn’t have that issue it could very well stimulate the economy...