Marcoeconomics & Economy the Major Thesis

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7% in April 2009, the sharpest drop in consumer prices since 1955 (Annual inflation at -0.7%, sharpest drop in consumer prices since 1955, 2009). A reduction in the cost of energy over the past 12 months helped drive the annual rate downward. Many economists are now concerned that, "The era of U.S. consumer price deflation is now upon us as the ongoing economic recession and deteriorating labor market conditions continue to weaken the bargaining power of retailers and laborers alike, thereby quenching the once raging inflationary flames.

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" (Mulrained cited in Annual inflation at -0.7%, sharpest drop in consumer prices since 1955).

In summary, major macroeconomic indicators show an economy in serious recession. GDP and inflation have declined and unemployment has increased, leading many to wonder if we will see the rebound that was once expected in late 2009......

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