analyze the unemployment rate and inflation from 2000 - 2010 in the US. discuss the interest...

analyze the unemployment rate and inflation from 2000 - 2010 in the US.

discuss the interest rate fluctuations from 2000 - 2010 in the US

Expert Solution

Analyze the unemployment rate and inflation from 2000 - 2010 in the US ?

Ans....

Year	Unemployment Rate (December)	Inflation (Dec. Year-over-Year)	Analyze Or Reason
2000	3.9%	3.4%	NASDAQ HIT RECORD HIGH.
2001	5.7%	1.6%	BUSH TAX CUTS. 9/11 ATTACKS
2002	6.0%	2.4%	WAR ON TERROR
2003	5.7%	1.9%	JGTRRA
2004	5.4%	3.3%	EXPANSION.
2005	4.9%	3.4%	BANKRUPTCY ABUSE PREVENTION ACT. KATRINA
2006	4.4%	2.5%	EXPANSION.
2007	5.0%	4.1%	EU BECAME #1 ECONOMY.
2008	7.3%	0.1%	MIN. WAGE = $6.55/ HOUR. FINANCIAL CRISIS
2009	9.9%	2.7%	ARRA. MIN WAGE $7.25. JOBLESS BENEFITS EXTENDED
2010	9.3%	1.5%	OBAMA TAX CUTS.

Discuss the interest rate fluctuations from 2000 - 2010 in the US ?

Ans....

2000 in Interest Rate
Feb 2	5.75%	Raised rates despite stock market decline in March.
Mar 21	6.0%
May 16	6.5%
2001
Jan 3	6.0%	Bush took office.
Jan 31	5.5%	Bush took office.
Mar 20	5.0%	Recession began. Fed lowered rates to fight it.
Apr 18	4.5%
May 15	4.0%
Jun 27	3.75%	EGTTRA tax rebate enacted.
Aug 21	3.5%
Sep 17	3.0%	9/11 attacks.
Oct 2	2.5%	Afghanistan War.
Nov 6	2.0%	Recession ended.
Dec 11	1.75%
2002
Nov 6	1.25%
2003
Jun 25	1.00%	JGTRRA tax cuts enacted.
2004
Jun 30	1.25%	Low rates pushed interest-only loans. Helped cause Subprime Mortgage Crisis.
Aug 10	1.5%
Sep 21	1.75%
Nov 10	2.0%
Dec 14	2.25%
2005
Feb 2	2.5%	Borrowers could not afford mortgages when rates reset in 3rd year.
Mar 22	2.75%
May 3	3.0%
Jun 30	3.25%
Aug 9	3.5%
Sep 20	3.75%
Nov 1	4.0%
Dec 13	4.25%
Fed Chair Ben Bernanke (February 2006 - January 2014)
2006
Jan 31	4.5%	Raised to cool housing market bubble. More homeowners default.
Mar 28	4.75%
May 10	5.0%
Jun 29	5.25%
2007
Sep 18	4.75%	Home sales fell.
Oct 31	4.5%
Dec 11	4.25%	LIBOR rose. Recession began.
2008
Jan 22	3.5%
Jan 30	3.0%	Tax rebate.
Mar 18	2.25%	Bear Stearns bailout.
Apr 30	2.0%	Lehman fails. Bank bailout approved. AIG bailout.
Oct 8	1.5%
Oct 29	1.0%
Dec 16	0.25%	Effectively zero. The lowest fed funds rate possible.
The Fed kept the rate at zero between 2008 and 2015. Recession ended in June 2009

Rahul Sunny answered 1 year ago

Explain unemployment and inflation from 2000-2010 in relation to output and growth.

What are some examples of inflation and unemployment in the time period of 2000 to 2010?

Analyze what the unemployment rate means for the US economy

Please provide one graph that illustrates the annual inflation rate (CPI) and unemployment rate since 2000.

The natural rate of unemployment is the unemployment rate at which the inflation rate has no...

The natural rate of unemployment is the unemployment rate at which the inflation rate has no tendency to increase or decrease. However, the natural rate of unemployment is not fixed. What causes changes in the natural rate of unemployment? Which of the following will not cause the natural rate of unemployment to change? A. Many previous periods with high rates of unemployment. B. Changes in the money supply resulting from monetary policy. C. Changes in labor market institutions. D. Changes...

Inflation, Unemployment, & Economic Policies (v.v.i) Define – inflation rate, unemployment rate, What are the types...

Inflation, Unemployment, & Economic Policies (v.v.i) Define – inflation rate, unemployment rate, What are the types of employment? Discuss about the natural rate of unemployment What is recession? What are the impacts of recession on business & workers? What happens in a recession and why do recession happens? Aggregate Demand Describe briefly about aggregate demand Describe briefly about aggregate supply What do u mean by demand pull inflation? What do u mean by cost-push inflation?

Over the last year the inflation rate was 3.8 percent and the interest rate on US...

Over the last year the inflation rate was 3.8 percent and the interest rate on US Treasury Bonds was slightly below 2 percent. As an investor in bonds a. what would you expect to happen to interest rates? b. using the three bond rules, in terms of prices, maturity, and coupon rates, what type of bonds should an investor purchase? Explain. c. Which bond is more price sensitive, a zero coupon 20 year to maturity government issued bond or a...

Analyze new monetary policy actions undertaken by the U.S. government from 2000 - 2010 by describing...

Analyze new monetary policy actions undertaken by the U.S. government from 2000 - 2010 by describing their intended effects, using macroeconomic principles to explain the actions. •You should specifically state what the intent of the actions were - for instance, the Fed may have used expansionary policy to help expand the economy in response to a recession. Such policies could have been buying up government bonds - this puts money into the economy since the Fed is buying these bonds...

Under the New Keynesian model, what happens to inflation and unemployment rate when nominal interest rate...

Under the New Keynesian model, what happens to inflation and unemployment rate when nominal interest rate increases?

Summarize the overall trends and outcomes of 2000 - 2010 in the US by integrating economic...

Summarize the overall trends and outcomes of 2000 - 2010 in the US by integrating economic models, and historical analysis. Refer to GDP, unemployment, interest rate, fiscal policy, monetary policy and foreign trade. Please relate answer in summary form and only for the 2000 - 2010 US time period.

Question