Economic Analysis Project Research Paper Example | Topics and Well Written Essays - 1250 words

Economic Analysis Project - Research Paper ExampleThe overall internal income of United States of America is being decreased. Highest reverence has been raised about the job or labor market place of the country. There atomic number 18 number of people who are looking for suitable jobs and are non able to find one. On the other hand the average take home earningss have been decreasing considerably (Pear, 2011). This all results in gain ground increasing the issues and problems for the economists and policy makers, who are in search of different ways to come out of the after affects of the economic recession. Government of United States of America along with other policy makers are busy in devising such a policy or st identifygy which facilitates them in the process of recovering. Different policies and initiatives are being taken by the officials and policy makers, but despite of this at that place has been continuous decrease in the overall income and output level of the econ omy. It has been reported that the national income of United States of America decreased by almost 9.8 percent after the recession till June this year. According to different economics analysts, this is one of the largest decline in past few decades (Pear, 2011). Despite of the little improvement in overall unemployment rate, the average wage rate is reporting constant decline (Pear, 2011). This issue is non only of high importance for the job seekers, but to a fault for job providers and the government of United States of America. As it has direct link with the overall economic spring of the country. And there is a high need of coming up with some effective strategy in order to overcome this problem. In order to clear this issue or problem, it is necessary to first identify the reasons and causes stinkpot it. This is possible only through a proper and thorough applied economic analysis. employ ECONOMIC ANALYSIS FOR IDENTIFYING MAIN REASONS BEHIND THE ISSUE AND COMING UP WITH E FFECTIVE STRATEGIES In order to better understand the overall situation it is important to have a look at the basic elements and factors which are directly related to the issue. First step in this regard is to identify and explore the reasons and factors behind the constant decrease in the wage rates and also in the overall national income of the country (Pear, 2011). Different analysts have presented several elements which are prudent for this. One of the main factor for this declining wage rate is high unemployment rate. There are several people who are in search of job, who are also ready to work at nominal hourly rates. Along with this, employees cannot demand high salary because of the increasing unemployment. It will be easy to understand these factors by applying the concept of supply and demand. In a normal market prices and level of output are decided by the forces of supply and demand. Similarly, in labor market wage rates are decided by the supply and demand of the labo r. The concept of Marginal Productivity, tried to explain the relationship between the wage rate and demand of the labor. According to this concept the wage rates are directly related to the demand of the labor. If there is more demand of labor the average wage rates will also increase. Whereas the there is an inverse relationship between the supply of labor and wage rates. If the supply of labor exceeds the demand of labor, then there is a significant decrease in th