In April 2018, the unemployment rate in the United States reached 3.9%. This this the first time in a little over 17 years that the unemployment rate went below 4%. The Federal Reserve estimates that the natural rate of unemployment is around 4.5%, since the current rate is quite a bit lower than this it shows an increase in aggregate demand and in turn causes GDP to increase as shown in the figure to the right. This is partly due to a decrease in the labor market so because of the increased scarcity of workers, the 164,000 newly hired workers will most likely be working at higher wages. The 2008 Economic Recession was the worst since the Great Depression. It greatly impacted the lives of Americans as over 2.8 million people lost their jobs in 2008 alone. This resulted in the unemployment rate to soar up to 9.3% in 2009. This meant that the USA was in a serious trough