Description
1) According to this article, what factors are driving recession fears?
2) Why does this author not believe that a recession is imminent or serious?
3) What areas of uncertainty remain in the U.S. economy? What else is are areas of
vulnerability?
4) How does this article support/relate to Real Business Cycle Theory?
5) What about this article contradicts Real Business Cycle Theory?
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Explanation & Answer
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Outline
Economics
Thesis: With recession anxieties climbing, people are increasingly worried about the Federal
Reserve’s capacity to respond.
According to this article, there are three aspects that seems to be driving recession
fears. In the first place, current information; for example, weak and slow career development
and delicate retail deals have demonstrated the losing of some force in the U.S economy.
Secondly, the curve of the Treasury yields lately partly reversed, that is some enduring bond
yields fell underneath momentary yields
The author of this article does not believe that a recession is imminent. The author
argues that the danger of recession stays low. He says that a few ranges of worry are ending
up less important. Money related conditions have bounced back as the financial exchange has
regained from its December defeat therefore China seems to be violently inspiring its
economy again.
The areas of uncertainty in the U.S economy are: Exchange strains with China could
heighten and taxes could rise, Inflation could quicken more than...