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Demand and Supply Models

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Demand and Supply Models
Raquel Hernandez
Adrian Diaz
Maritza Medrano
Lizette Estrada
University of Phoenix
Principles of Macroeconomics
ECO/372
Mr. Daniel Rowe
February 22, 2014

Economic Critique
Aggregate demand and supply are two extremely important elements that must take into consideration in macroeconomics. Considering how numerous economic factors impact demand and supply which is very serious especially important to the government because during the time frame it determines the economic policy. Factors such as unemployment, expectations, consumer income, and interest rates include an interest on the aggregate demand and supply. Therefore, these factors will be explained from two perspectives which are the Classical and the Keynesian.
Although the events of the past six years have undeniably left their mark on the supply side of the economy, the primary reason unemployment remains high is lack of demand (Williams, 2013, p. 1). The private labor force support rate was dropped by 0.2% and marked a 62.8% by December, balancing a transformation of the same degree in November of 2013. However, during December the employment population rate was constant at 58.6%. The private labor force support rate had weakened by 0.8%, during the year, although the employment population rate was constant. Economists attempt to explain or translate the information calmly to improve and determine what approach the government policy must force.
The United Sates unemployment rates lessen from 7.3% to 6.7%, in October 2013, which was stated in the statistics report of the United States Bureau of Labor. Employment has elevated in recreation and retail trade, technical services, hospitality, health care, and manufacturing. Fed policymakers admit that they are able to maintain the balance of unemployment much better than how it was prior. Therefore, it has…...

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