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Today, as in the 1990's the U.S. has reached a record low unemployment rate, which "is the percentage of people in the economy who are willing and able to work but who are not working." (Colendar, 2004). Included in this conundrum we see steady declines in the U.S. inflation rate. Inflation "accelerates when an economy is operating above potential, one way of estimating potential output is to estimate the rate of unemployment below which inflation has begun to accelerate in the past." (Colendar, 2004).
For many economists, optimism in the economy's strong performance was, and is today, tempered with a quizzical somewhat dismayed reservation...
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