U.S. economy stalls in first quarter as activity weakens broadly

 

http://www.reuters.com/article/us-usa-economy-idUSKCN0XP0BQ

The article reports the decrease in Economic Growth rate in US economy on account of declining Consumption and Investment. The Disposable Incomes increased in the same time but the rising Saving accounted for the net decrease in total Consumption. Producers on the other hand are not investing because of accumulating inventory from declining Demand.

 

Topics include Economic Growth, Components of Aggregate Demand, Investment, Consumption, Government spending. Use the National Income Equation and Macroeconomic diagrams to explain the current situation and the possible solutions through Interventionist and Market based Supply side and Demand side policies.

 

Evaluation will cover effectiveness of Supply side and Demand side policies in short term and long term in achieving Economic Growth.

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