Question

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.

Answer 1

The business cycle in an economy consists of four phases: expansion, peak, recession, and trough. In my opinion currently the U.S. economy is in economic expansion which is approximately a decade old, mark 10 consistent years of expansion in economy since the end of the Great Recession, making it among the longest on record. I determined it with consideration on gross domestic product (GDP), interest rates, unemployment rate and consumer spending. As per the data of Bureau of Labor Statistics the current numbers on unemployment for the past 6 months have been below 5%. It is below the 50-year average of 6.2%, and moreover below the generally accepted full rate of employment of just over 5%. Also the GDP is growing at 2.1% in 2019 even with trade war effect. It is expected that strong capital growth and higher exports will boost manufacturing; and production will increase 3.9% in 2019. Moreover it is expected that by 2020 the U.S. economy will fully recover from the recession and that the labor force will be back to full employment where the rate of unemployment will be 4 to 5%