Macroeconomic Events

Question: Discuss about the Macroeconomic Events. Answer: Introduction It is true that, macroeconomics events take place around us each and every day. These macroeconomics events reflect the economy of the nation in which we survive. Moreover, various economy-wide events such as: GDP (Gross Domestic Product), inflationary economy, recessionary economy, fiscal policy, monetary policy, price levels, national income, etc. occur in the area of macroeconomics. Along with this, for this research essay, I would like to select an article The Economic Recovery: Past, Present, and Future by John C. Williams to discuss the macroeconomics events, economic models, and concepts in an effectual manner. Moreover, this essay would be valuable to show relation between the macroeconomics events, models, and concepts of the U.S. economy. Suitable Economic Concepts and Models to Analysis the Article In the context of the economy, numerous economic and model are used to analysis an article related to economy. This research article mainly emphasizes on the macroeconomics events such as: GDP, inflation, recession, fiscal policy, and monetary policy that occur around us every day (Lipsey Chrystal, 2011). Along with this, the economics concepts and models for example Expenditure Model, ASAD, and Money market diagram are very suitable to analysis the macroeconomic events of the article effectually. These all the economic models and concepts measure the economy of a nation accurately. The expenditure economic model is an effective model to estimate the GDP of the nation (Paulsen, Toutkoushian, 2006). This model involves all the major factors such as: investment, consumption, government spending, exports, and imports to recognize the actual position of the economy of a particular nation. On the other hand, AD-AS (Aggregate Demand and Aggregate Supply) model is an effectual macroeconomic model that determines real GDP as well as price levels in both short and long run. Along with this, the model also envisages the effects that various macroeconomics events will have on two important variables: real GDP as well as the price level of the economy of a nation. Moreover, the ADAS model measure the GDP rate, unemployment rate, and inflation fluctuations that exist in the economy of a nation. So, it is also an effective economic model that is valuable to analysis macroeconomics events properly (Michl, 2015). In addition to this, Money market model/diagram is an economic model that estimates the monetary and fiscal policy of a nation effectively. The model is also helpful in order to describe the supply and demand for money of a nation. This model also estimates the Real GDP, Interest Rate, and the Price Level of the nation. As a consequence, the above discussed are the econo mic concepts and models that would be appropriate to analysis the article effectually. Summary of the Article In this article, the author John C. Williams talks about the U.S. economy. The author also explains the major steps that the government of the nation has adopted and implemented to boost the economy of the nation. Along with this, in the research article, the author converses about the macroeconomic events such as: GDP, inflation, recession, fiscal policy, and monetary policy occurred in the economy of the nation. The major subject of concern is GDP of the nation. The author shows the impact of recession on the GDP of the nation (Williams, 2013). In this article, it is clear that, the U.S. economy is well into a period of continuous growth. But, after the five years of the recession, real GDP had not returned to somewhere it had been prior to the recession. The below diagram is helpful to show the cumulative changes in the real GDP of the nation: (Source: Williams, 2013). On the other hand, the author says that there are numerous economic factors those are influencing the rapid growth of the real GDP of nation. For example, business uncertainties, unemployment rate, poor response of the government, insecurity about the economic policy, and so on are economic factors those are creating trouble in the improvement of the GDP of the nation. Moreover, fiscal policy of the nation also pulled the economy since the beginning of the collapse (Williams, 2013). So, in this news article, the author only talks about the macroeconomic events that occur in the economy of a particular nation. Macroeconomics Challenges Faced By the Country On the basis of the selected news article, there are lots of macroeconomic challenges that are faced by the nation. For example, the biggest challenge is related to the GDP of the nation. The real GDP is not increasing as desired by the government of the nation. Moreover, economy uncertainty is also the other challenge in front of the nation. Increased unemployment rate, as well as interest rate is another macroeconomic challenge faced by the country. Also, feeble monetary policy and fiscal policy are the other challenges that exist in the economy of the nation (Williams, 2013). On the other hand, if we talk about the causes of these macroeconomic challenges or problems then we will only find recession in the root. Recessions are never pleasurable, but this one (recession 2008) was particularly harsh for the economy of the nations. So, just because of the recession, the economy has not recovered as fast as expected. Along with this, these macroeconomic challenges not only influenced the economy of the nation; but also influenced people and society of the nation. The increased unemployment rate and decreased income level created troubles in front of people. The standard of living of people has been declined just because of the macroeconomic challenges faced by the nation. Moreover, these problems also influenced the economic policies developed by the government to solve the macroeconomic issues. During the recession, the government lobbed a critical lifeline to the economy and responded vigorously. These all the things played critical roles to increase the macroeconomic challenges continuously. Linkage between Macroeconomic events and Economic Concepts Models There is a strong relationship between macroeconomic events and economic concepts/models. It is because of economic concepts/models are analytical tool that are only planned to portray the operations of the economy of a nation (Tucker, 2016). Along with this, the economic models play a significant role in order to look at the dynamics of aggregate quantities for example total income, total goods/services, the level of prices, the level of employment, etc. to boost the economy of the nation. In this article, macroeconomics events occurred in the economy of the nation. The absence of appropriate economic models can be considered a major reason of these growing challenges. It is because of recession cannot extremely influence the economy of a nation. If a nation uses economic models properly then recession cannot create macroeconomic challenges in front of nation. There is only need of effective economic models and cooperation of people to boost the economy of a nation (Williams, 2013). Conclusion On the basis of the above analysis, it can be said that, macroeconomic events or challenges may occur any time in the economy of a nation. These events influence the economy very badly. Moreover, it is also observed that, economic concepts and models play a major role to improve the economy and to solve the economic problem of nations in an effectual and a more comprehensive manner. References Lipsey, R., Chrystal, A. (2011). Economics. UK: OUP Oxford. Michl, T.R. (2015). Macroeconomic Theory: A Short Course: A Short Course. NY: Routledge. Paulsen, M. B., Toutkoushian, R. K. (2006). Overview of economic concepts, models, and methods for institutional research. New Directions for Institutional Research, 2006(132), 5-24. Tucker, I.B. (2016). Macroeconomics for Today. USA: Cengage Learning. Williams, J.C. (2013). The Economic Recovery: Past, Present, and Future. Retrieved From: https://www.frbsf.org/economic-research/publications/economic-letter/2013/july/economic-recovery-past-present-future/