Three Key Factors That Will Define The New York Times: Three Key Factors That Will Define Them”

Running head: MACROECONOMICS
Macroeconomics
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1MACROECONOMICS
Table of Contents
Introduction:...............................................................................................................................2
Article Summary:.......................................................................................................................2
Economic Analysis:...................................................................................................................3
Critical Evaluation:....................................................................................................................4
Conclusion:................................................................................................................................5
References:.................................................................................................................................6

2MACROECONOMICS
Introduction:
The chief focus of this report is to analyse the concept of given article with the help of
economic concept. The New York Times has published this article under the heading,
“Three Key Factors That Will Determine How Long the Hot Job Market Lasts”. The
reporter has focused on various issues related to job markets of America from both
macroeconomic and microeconomic perspective (Nytimes.com). However, the report selects
the concept of Phillips curve and its implication over the entire country. This economic
concept represents an inverse relationship between unemployment rate and inflation rate.
This report divides entire analysis into some headings to understand that whether Phillips
Curve can successfully describe the situation or not.
Article Summary:
The given newspaper article describes the job market of America in October, 2018.
The increasing number of jobs has employed many people while the country has reached at
the full employment level (Nytimes.com). As a result, the unemployment rate has remained
low at 3.7 percent while the percentage of employed people has increased by 0.2 percent.
This in turn increases demand for labours in labour market and increases wages significantly.
As the demand for labours increases gradually in labour market, the average wages per hour
also increases to above 3.1 percent compare to the last year, which was, 2.8 percent. This
implies that the American labour market has reached to a strong position after 18 years
(Nytimes.com). Moreover, the inflation rate of this country increases and this in turn
influences the Federal Reserve to increase interest rates for controlling this inflation rate
further. According to Jude and Khan, a country can experience inflation when average price
level for a specific basket of good increases continuously for a certain period of time (140).
This economic phenomenon can be occurred due to two different causes, which are cost-push
inflation and demand-pull inflation. In this context, the country experiences cost-push