Explain aggregate expenditure to model

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Reference no: EM1353566

Use the aggregate expenditure model to explain the following statements from the opening news article written by Sudeep Reddy:

a. "U.S. employers shed 63,000 jobs last month, the most in five years, reinforcing a widening view that the U.S. is falling into recession."

b. "Private-sector jobs fell by 101,000, the third straight month of declines. The February unemployment rate edged down to 4.8% from 4.9%, but only because some job-seekers quit looking for work".

c. "The Fed is expected to cut interest rates again to prop up the economy. Futures market anticipate the Fec will cut its target for federal-funds rate, charged on overnight loans between banks, by 0.75 percentage point from its current 3%.

Reference no: EM1353566

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