by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the US Labor Force? The US Labor force is the number of employed plus the unemployed. What is Employed and Unemployed? Employed: currently working for pay Unemployed: Out of work and actively looking for a job Should we count everyone without a job as...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Establishment Payroll Survey? When the unemployment report comes out each month, the Bureau of Labor Statistics (BLS) also reports on the number of jobs created—which comes from the establishment payroll survey. The payroll survey is based on a survey of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Temporary and Permanent Fiscal Policy? A temporary tax cut or spending increase will explicitly last only for a year or two, and then revert to its original level. A permanent tax cut or spending increase is expected to stay in place for the foreseeable...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How Does Fiscal Policy Affect Interest Rates? Because fiscal policy affects the quantity that the government borrows in financial capital markets, it not only affects aggregate demand—it can also affect interest rates. In the chart below, the original equilibrium...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does Fiscal Policy Affect the Aggregate Supply and Demand Curve? The result of this is regular shifts to the right of the aggregate supply curves. The original equilibrium occurs at E0, the intersection of aggregate demand curve AD0 and aggregate supply curve...
