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RamirezM_ECO372_WK3.docx - Running head MONEY AND THE...

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Running head: MONEY AND THE ECONOMY IN THE LONG-RUN 1 Money and the Economy in the Long-Run Merranda Ramirez ECO372 May 28, 2017 Ilisha Newhouse
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MONEY AND THE ECONOMY IN THE LONG-RUN 2 Money and the Economy in the Long-Run It is imperative that a country focuses on having a balance in their economy. A balance helps to prevent recession and helps to Raise their Gross Domestic Product (GDP). There are numerous reasons a country needs to have a balance in their economy and trades. Having a balance helps savers save appropriately and borrowers borrow to create more businesses and raise employment opportunities. A balance within the United States economy will help to raise employment rates, decrease unemployment, and help consumers have a healthy purchasing power on foreign goods and goods from “at home.” History of GDP, Savings, Interest, and Unemployment Rates The United States GDP is currently 19,027.6 billion dollars as of 2017 first quarter (Bureau of Economic Analysis, 2017). The GDP for the first quarter of 2017 reflects a 1.2% increase from the year 2016. As of 2016 the Gross Savings is at 17.6% which is almost a 2% decrease from 2014 and 2015 where the Gross Savings was 19.2% and 19.1% (Central Intelligence Agency, 2017). The unemployment rate has steadily declined since 2014 and 2015. The current unemployment rate is at 4.4% and current United States Exports is at 1.47 trillion dollars (Bureau of Labor Statistics, 2017). The Unemployment rate could be even lower if the United States lowers its reliance on imports. The import amount as of 2016 is 2.205 trillion dollars and 21% of that comes from China (Central Intelligence Agency, 2017). China and Mexico are where the United States obtains the majority of their foreign goods. The unemployment rate has dropped, but the amount of foreign goods has increased. Most stores carry items that are made in China. This allows products to be cheaper and competitive, but lessens the amount of jobs that are available to those who are citizens of the United States. Approximately 8% of the United States import is from oil (Central Intelligence Agency, 2017). The United States is the country with the largest oil reserves (Matthews, 2016).
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MONEY AND THE ECONOMY IN THE LONG-RUN 3 So, why is there an import of foreign oil? Using imported oil potentially raises the cost of the oil and decreases the jobs that United States Citizens could obtain.
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