ECONOMIC ADVISEMENT PAPER Research Example | Topics and Well Written Essays - 500 words - 1

ECONOMIC ADVISEMENT - Research Paper Example The unemployment rate reported from 1948 until 2013, on an average was 5.81 percent. The highest unemployment rate recorded in USA was in November of 1982 which was 10.83 percent and the lowest was recorded in May of 1953, which was 2.50 percent. In united state, the unemployment rate measures the people who are unemployed, from the labor force. (trading economics, 2013) The interest rate in USA is reported by the Federal Reserve. The interest rate last recorded in USA was 0.25 percent. From 1917 until 2013 the average interest rate was 6.81 percent. The highest interest rate recorded was in March 1980, which was 20 percent, while the lowest interest rate was 0.25 in December 2008. In the United States, the interest rate is decided by the combined decision of the Federal Reserve (board) and the federal open market committee (FOMC). The decision is made by the board on the basis of the recommendations, given by one or more regional Federal Reserve Bank. (united state interest rate, 2013) According to a report by the commerce department, there was an increase of 2.6 percent in the consumer income, in USA. The report says that the salaries and wages of the American labors have been increasingly growing since December 2004. Due the increase in the income, there is an increase in the consumer spending as well. The rise in the consumer income rate was due to improve in the wages and the salaries of the American employees. The bonuses and the compensation were given by many companies to their employees, before in the raise in taxes. The consumption rate of the consumer was raised up to 2.2 percent, which was more than the estimated rate. The increase in the per person income rate is more than the estimated, this shows that the American economy have improved more than the expectation. There is an increase in the payroll tax from February, which has decreased the