Question

Macroeconomics Question: In one to two paragraphs, critique the following statement:

Despite the recent declines in quarterly and annual RGDP, America's economy must be improving because the unemployment rate as reported by the BLS has also continued to decline.

Do you agree or disagree? Support your position using economic terminology (being careful to explain).

Answer 1

Indeed, I concur with the announcement. This is on account of

1. Business development impeded by 12 percent. By the by, the joblessness rate continued dropping, achieving a 17-year low. The quantity of employment opening rose, likewise to an almost 17-year record.

2. Monetary development got to a 3.2 percent yearly rate in the July-September quarter from 1.5 percent for all of 2016.

Under Trump, the jobless rate fell further — to 4.1 percent in October, November and December. That is the most reduced the rate has been since it hit 3.9 percent for four months in 2000, toward the finish of the website blast. The rate likewise is well underneath the chronicled standard of 5.6 percent, which is the middle month to month rate for every one of the months since the beginning of 1948. The least joblessness rate at any point recorded was in 1953, when the rate was 2.5 percent for a few months. The quantity of assembling occupations recorded in December, 12.5 million, was 184,000 (or 1.5 percent) higher than when Trump took office. In the previous 11 months, the number went around 20,000. The expansion under Trump is somewhat superior to anything the 1.3 percent pick up altogether nonfarm business. The economy developed at a yearly rate of 3.2 percent amid the second from last quarter of 2017, as indicated by the latest authority evaluate by the Bureau of Economic Analysis. That 3.2 percent development rate evaluate is more than twofold the 1.5 percent development recorded for the entire year of 2016. Furthermore, it's significantly higher than the 2.9 percent genuine development recorded in 2015, the best entire year figure for the Obama years.