Using basic economic principles state what you think will ca

Using basic economic principles, state what you think will cause market fluctuations over the next few years as the economy struggles to recover. What areas of the economy should be closely watched as indicators of future activity?

Solution

Evolving international trade scenarios such as free trade and Regional trade agreements may get the US into the competition with the World producers. This competition will reduce the wages to a competitive level. Debt problems are the need of the hour that the US needs to fix at the earliest. Low demand for treasury bills in the market will bring the prices down and the economy will suffer. The economy needs to monitor the debt ceiling negotiations and all other debt related issues. The debt default by the United states might be a disaster for the economy and must be monitored.