ECONOMICS

Economics

Economics

a.

With the economy in such hard times, it would be difficult to look past some of the issues facing us. The unemployment rate has skyrocketed, available jobs have plummeted, and people feel much less secure in their jobs. What is currently being referred to as a financial crisis was originally triggered by a shortfall in the banks. By 2010, many of world's large financial institutions have collapsed. The housing market has suffered badly. Many people have lost their homes, jobs, and more. Foreclosure rates are the highest they have ever been in the United States. Many Americans are losing not only their jobs, but their homes, as well. Not only in US, is the same situation being faced by many states of the world (Blaug, 2007). It is said by some economists that as many large states of the world could face bankruptcy by at the expected time.. It is not only the individuals in the world that are facing economic hardships; many companies are failing, as well as the states themselves.

In these difficult times, it can be hard to keep positive. Looking toward the bright side, many aspects of the economic downturn are starting to get better. Though the unemployment rate is still staggering, it is slowly getting better. Many financial institutions are becoming better with lending to people. The housing market may still be down, but it is getting better. Many economists today say that we are finally pulling slowly out of the recession. Things are starting to look better for the world than they have in years. We may see an end to the economic crisis soon.

b.

Budget deficits and surpluses can help stabilize the economy. If economy enters, the recession will fall as income taxes and employment. At the same time, public spending will increase as people receiving ...