Question

In: Finance

Discuss the current state of the economy and whether forecasters are predicting that the economy will...

Discuss the current state of the economy and whether forecasters are predicting that the economy will continue to expand or whether a recession is coming.

Solutions

Expert Solution

The second quarter (Q2) of 2020 was worse than the first, which was decimated by the COVID-19 pandemic. Growth declined by 5% in the first quarter, signaling the onset of the 2020 recession.1 In Q2, the economy contracted 31.7%.2 The Congressional Budget Office (CBO) predicts the third quarter will improve, but not enough to make up for earlier losses.3

In April, retail sales were down 16.4% as governors closed nonessential businesses. The number of unemployed shot up to 23 million amid companies furloughing workers.4 However, estimates for U.S. retail and food sales in August 2020 show a small increase of 0.6%. month over month from July.5

According to the most recent forecast released at the Federal Open Market Committee (FOMC) meeting on Sept. 16, 2020, U.S. GDP growth is expected to contract by 3.7% in 2020. It may rebound up to a 4.0% growth rate in 2021. Growth could slow to 3.0% in 2022, and 2.5% in 2023

The path of the economy will depend significantly on the course of the virus . the Fed admits the economic recovery has progressed at a much faster pace than previously expected. But that praise comes with a sizable caveat — the road to recoverym be long and winding with several hills to climb


Related Solutions

I would like you to discuss the current state of the economy and whether forecasters are...
I would like you to discuss the current state of the economy and whether forecasters are predicting that the economy will continue to expand or whether a recession is coming. You can compare such forecasts to what is implied by the term spread. There is no right or wrong answer but feel free to speak your mind.
Evaluate the state of the current u.s. economy. Explain whether you believe economy strong, moderate, or...
Evaluate the state of the current u.s. economy. Explain whether you believe economy strong, moderate, or weak. Is it booming, at a peak, in a trough, or headed towards a recession? Offer a careful explanation for the factors you believe have shaped the current state of the economy. Must be a minimum of 150 words.
1.Briefly explain the current state of your economy and then briefly explain the current state of...
1.Briefly explain the current state of your economy and then briefly explain the current state of the U.S exonomy. 2. What else is inportant to know about your economy? Has anything changed because of Covid-19?
Discuss the role of the state and whether the state can cope in an atmosphere of...
Discuss the role of the state and whether the state can cope in an atmosphere of a diverse range of pressures in an ever changing and interdependent global economic environment.
In the current state of the economy and the bullwhip effect of prepping for a health...
In the current state of the economy and the bullwhip effect of prepping for a health epidemic, many companies are experiencing capacity planning issues. What capacity issues have you experienced or know about related to this health crisis?
How does our current Real GDP reflect the current state of the economy? (the latest GDP...
How does our current Real GDP reflect the current state of the economy? (the latest GDP report) What is happening to consumption, investment, government spending, and net exports according to the report? According to the latest data and your own evaluation of the economy, where would you say we are in the business cycle and why? Also, choose one of the other reports in U.S. Economy at a Glance (Links to an external site.) and briefly summarize the data from...
Given the current state of the economy, what are some of the Keynesian policies that have...
Given the current state of the economy, what are some of the Keynesian policies that have been enacted and explain how they are supposed to help avert a Depression-like downturn.
• Explain the price levels in China's economy and state the current level of inflation. •...
• Explain the price levels in China's economy and state the current level of inflation. • In Task 2, you identified a product which was plentiful in supply (we have identified mobile phones). If there was an increase in production costs for this product or service, what would happen to its supply? Briefly describe this type of inflation.
Bearing in mind the current state of the global economy, and analysis of Amazon in UAE...
Bearing in mind the current state of the global economy, and analysis of Amazon in UAE as a baseline, research on Indian market using international market research theory. Then, based on secondary research of that market, segment, target and position Amazon  in Indian market to allow the company to grow and sustain competitive advantage.
Briefly review the current state of the economy including GDP, inflation, unemployment.
Briefly review the current state of the economy including GDP, inflation, unemployment.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT