GDP (1) - Economics GDP: Gross Domestic Product Currently,...

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Unformatted text preview: Economics GDP: Gross Domestic Product Currently, in the United States , Gross Domestic Product is at 14.87 trillion dollars. Currently, GDP is growing as it grew at a rate of 3.2 percent in the fourth quarter of 2010, based upon data compiled by the Bureau of Economic Analysis. The changes in the GDP determine whether or not there is growth in the economy. If GDP is negative for two consecutive quarters, then there is officially a recession. The GDP is a procyclic indicator in that it moves as the same direction as the economy. GDP can specifically say which sectors of an economy are growing and which are shrinking, and which affects future investment. It also influences what action the Federal Reserve will do in their attempts to improve the economy. Also gives a determination of the growth of one nation relative to another. Businesses do not make changes immediately when GDP data is released. Specifically, changes to the labor market do not occur rapidly and businesses will not hire until they are sure...
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This note was uploaded on 02/02/2011 for the course ECON 201 taught by Professor Sung during the Spring '08 term at Indiana.

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