Macroeconomics in Today

Macroeconomics in Today - Macroeconomics in Todays...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
The economy of the United States is the largest in the world (Analysis, 2011). The United States economy is market driven where private firms and business makes the majority of the decisions. Federal and State governments buy needed services and goods in the private marketplace. The gross domestic product, GDP, is the comprehensive measure of total market value of all currently produced final goods and services within a country in a given period of time by domestic and foreign- supplied resources (Analysis, 2011). The GDP in the United States has increased 1.8% in the first quarter of 2011 (Government, 2011). The current GDP is 14.12 trillion US dollars. The real GDP in does not include inflation, in which it increased 3.1% in the fourth quarter of 2010. The increase reflects positive contributions from personal consumption expenditures (PCE), private inventory investment, exports, and fixed- investments (Analysis, 2011). Another factor along with GDP is the GDP growth rate. Economic growth is an increase in the value of goods and services produced by a country’s economy. Growth is calculated in “real” terms, which include inflation-adjusted terms to net out the effects of inflation on the prices of the goods and services. The growth is a measure of potential output of goods and services. The real GDP is an indicator of the average standard of living of individuals in a particular country. With the current increase in the U.S. GDP, 1.8% this can be analyzed as a positive for the country’s economy. Unemployment and employment rates are also factors of the economic status of the U.S. The last reported unemployment rate of the U.S. was 9.1% in May of 2011 (Analysis, 2011). This percentage is calculated using the size of the labor force. The labor force is defines as the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Macroeconomics in Today - Macroeconomics in Todays...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online