Economics - 1537 Words

| Assignment 2 | The Fiscal and Monetary Policy and Economic Fluctuations | | | 12/1/2013 | | An economy is the wealth and resources of a country or a region. Economy mainly refers to the consumption of goods and services in a specific country or region. The United States of America is known across the entire world as having the largest economy. The economy in the United States today is now where near what it was many years ago. The current economic situation has the country trying to regain its high economic status. The United States economy is really not good in its current state, but somewhat better than it was five years ago. Many people are not aware of the problem that we have in this country. I think that†¦show more content†¦(www.latimes.com) In an effort to boost the drowning economy, the federal government determined that the need was greater for the credit situation than the savings situation. (www.latimes.com) According to an article in the L.A. times, corporate America has earned more today than they did at the end of 2008. I think that inflat ion is a problem today for sure. The main problem with inflation in the United States is the rising costs of rents and medical supplies and expenses. â€Å"Inflation is sustained increases in the average prices of all goods and services.† (Osullivan) Today inflation has caused increases. According to the report on the Consumer Price Index (CPI), consumer prices were up 0.1% effective August 2013. (usinflationcalculator.com) The consumer price index measures changes in the price level of a market or basically how much we as consumers pay for goods and services in the United States. It is reported today that inflation is somewhat under control because the rate is less than 4%. I think that the housing inflation was worse five years ago compared to today. Consumers were losing houses due to unemployment and affordability. Many consumers had home loans and interest rates that they really could not afford. The prices of housing were much lower five years ago versus toda y. The prices of houses are higher now and people would need toShow MoreRelatedEconomics And Economics On Economics Essay1142 Words   |  5 PagesWhen we talk about economics we must first defined the word. Economics is a social science that studies human behavior and how to allocate our limited (scares) resources, efficiently and effectively to meet our unlimited human wants. Now as we dive deeper in to the field of economics we realized that there are two separate categories that the study of economics breaks off into. The first is macroeconomics, macroeconomics is the study of the whole picture when it comes to economics. Macroeconomics willRead MoreEconomics : Economics And Micro Economics1238 Words   |  5 Pages Economics is the study of how our unlimited demand of certain things can be met by our limited amount of supply. 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