Article One

Graph One

  1. The graph presents the median household income for households in the United States over a seven-year period beginning 2008 to 2014. The median household income is the income that is at the midpoint of all households’ income.
  2. The figure shows that the median income of households in the United States decreased over the2008-2012 period, but continuously increased from 2012 onward to 2014.
  3. The trend in the median household income informs the government of the prevailing macroeconomic conditions such as the health of the economy or the buying power of consumers. For example, a government can use such data to know whether the economy is going through a recession, or economic recovery is taking hold. The public can use it to know whether their cost of living is rising faster or slower relative to their incomes.

Graph Two

  1. Figure two present two graphs; one presents the US unemployment rate, the other presents the labor-force participation rate.Unemployment rate refers to the proportion of an economy’s labor force that is willing and able to work and is actively looking for employment. The labor-force participation rate, on the other hand, refers to the percentage of an economy’s population that is aged 15 and above that is economically active.
  2. The figure shows that the U.S unemployment rate rose over the 2008-2010 period but has since declined. On the other hand, the labor-force participation rate in the United States has steadily declined since 2008 up to 2014.
  3. Data on unemployment ratehelpsin gauging the health of an economy and the labor market. Low unemployment rates mean that the economy is creatingopportunities,therefore, doing well. It indicates that investors have confidence in the economy and therefore investing.
  4. Graph Three
  5. Figure three shows GDP as a percentage change of previous quarter at an annual rate.GDP refers to the monetary value of all final services and goods that have been produced within a country’s boundarieswithin a specifiedperiod, normally one
  6. The figure shows that except for 2008, the change in GDP has been growing.
  7. Data trend on GDP can be invaluable to any economy. A positive and significant GDP indicates that economy players and industries in the economy are registering positive growth in their output, therefore, indicating a healthy economy.

Graph Four

  1. Figure four presents the United States federal budget deficit in trillions, as well as, the federal budget deficit as a percentage of GDP.A budget deficit is the amount by which the governments’ budget expenditure exceeds the government’s revenue streams.
  2. The figure shows that the United States budget deficit in nominal terms, andas a percentage of GDP has been decreasing over the years from 2009 to 2014.
  3. At the macroeconomic level, deficits mean that the government is overspending and thus has to borrow to finance the deficit. A budget position is projected to unsustainable when it causes federal debts to grow quicker than GDP.This will affect the prevailing interest rates, exchange rates, and amount of money channeled towards debt repayment and servicing.

Graph Five

  1. Figure five presents the U.S public debt as a percentage of GDP and Federal Reserves assets. Public debt refers to the amount of money that the government has borrowed.Federal reserves assets refer to assets owned by the Federal Reserve Bank, and they include assets such as mortgage-backed securities and holdings of Treasury and agency.
  2. The figure shows that the United States public debt as a percentage of its GDP has been steadily rising over the years from 65% in 2008 to around 100% in 2014. Similarly, Federal Reserve assets have also increased over these years.
  3. In the economy, the debt-GDP ratio is an indicator of the ability of an economy to service its debts without incurring further debts.It informs investors on whether an economy has too much debt. It is not advisable for any country to have a high debt-to-GDP ratio, however, it is not necessarily badfor as long asan economy is growing.

Graph Six

  1. Figure six displays the proportion of homeowners in the United States. It also presents trends in the 20-city homeprice
  2. According to the graph the percentage of homeowners has dropped since 2008, from a high of 68 percent to the current 64 percent. The 20-city homeprice index has fluctuated over the years, but beginning 2012 it has continuously improved.
  3. In the macroeconomic front, the drop in the number of homeownerscan be attributed to high unemployment rates and more stringent lending conditions, or high property prices. The improvement in the 20-city homeprice index is indicative that the value of residential real estate has increased over these years. The rise can be attributed to higher demand attributable to increasing employment rates and low cost of capital through reduced interest rates..

Graph Seven

  1. The last graph presents the S&P 500 index and the ten-year governmentbond
  2. The graph shows that the S&P 500 index has continuously risen startingfrom the year 2009 up to 2014, on the other hand, the Ten-year governmentbond yield hasintermittently fluctuated.
  3. From the macroeconomic perspective, the fluctuations in the Ten-year governmentbond yield could be in response to the monetary policy that is being implemented based on the prevailing macroeconomic The increase in S&P 500 indexdenotes that the value of stocks by market capitalization is rising, indicating confidence in the market performance of listed firms and the economy at large. On the other hand, the ten-year governmentbond yield is usually responsive to the amount of liquidity the government wants in the market in order to control other macroeconomic indicators such as inflation and unemployment rates.This explains the variability of the bond yields.

Do you need an Original High Quality Academic Custom Essay?