Consumer Income, Interest Rates, Aggregate Demand And Supply

358 words - 2 pages

Consumer Income, Interest rates, Aggregate demand and supply
Consumer income in the United States can be described as better than most compared to other countries. As of June, consumer income has increased .5 percent and personal disposal income has increased .4 percent (). Although the consumer income increased the consumer expenditures continued to decrease. This displays the consumer’s conservative spending habits. The consumer is yet to fully believe that the economy will continue to strengthen. As history has proven before wages ...view middle of the document...

They are trying to get consumers to file for loans and possibly encourage banks to approve these potential homeowners. If a consumer is looking to purchase a house, car, or even take out a personal loan this is the time to do it. A homeowner might even consider refinancing his or her home. There are a few factors that a homeowner should consider when trying to refinance. With interest rates this low and consumer income increasing, one would expect consumers to increase their buying on more significant items.
Aggregate demand and supply are viewed by economists to make assumptions or predictions about current situations. Aggregate demand can be considered the total demand for the United States’ output. This can be the production of goods and services over a certain period of time. Demand is viewed by consumption, investment, government, and exports. A common assumption is that as demand rises in the U.S. prices will fall. Aggregate supply can be divided into two types which are long run and short run supply. If the U.S. can run efficiently then the unemployment rate will be close to the natural rate. If output prices increase in the U.S., contracts made between businesses and consumers will eventually readjust and erase any increased profits.

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