Economic Analysis of The U.S. 2001-2003
analytical Essay
2561 words
Economic Analysis of The U.S. 2001-2003
Economics have many indicators to describe how it runs. The indicators can show if the economy has improved or declined. The economic indicators that will be focused on in this analysis of the United States economy from 2001 – 2003 will be the consumer price index, the imports and exports, the unemployment rate, and finally the gross domestic product. Now while most may know the meanings of the previously stated indicators, for those who don’t, they remain useless unless defined. To begin with, these indicators will have to be defined in full to aid in understanding the analysis in more detail. It will be after that that the actual analysis of the economy of the United States from 2001 – 2003 will begin.
The first indicator to be discussed will be the consumer price index. The consumer price index can be described as “a price index that measures the cost of a fixed basket of goods chosen to represent the consumption pattern of individuals” . This is mainly used by the government and private sector to measure the changes of the prices that consumers deal with . Also the reference to basket refers to a collection of items representing a purchasing pattern of a typical consumer. The consumer price index has many components itself such as medical, transportation, household services, rent, durables, non-durables, apparels, food and beverage, and other services . This is relevant to show how much prices have increased from a base year .
Imports and exports weigh heavily on how well an economy could be. Imports are defined as “a good produced in a foreign country and purchased by residents of the “home” country” . For example an import would be as if in the United States were to get some kind of certain product from another country. Exports are defined as “a good produced in the “home” country and sold in another country” . An example of this is if the United States were to sell a product to another country. Ideally speaking, imports should be less then total exports. If the total exports are more then the total imports, that means more money is being received in the homeland, if there is more importing than exporting, that means that the country will be not be gaining from the exports. The United States has a poor import to export rati...
... middle of paper ...
...r will again be on the up and up, with a 3.3% in gross domestic product, showing that 2003 was going to be a positive year . The third quarter was at an astounding 8.2% showing a massive increase from the previous quarters . 2003 would be a year of higher production; in fact it was the highest producing year of the three analyzed.
In conclusion, looking at these indicators, there has been am explanation of home the economy was in the years 2001-2003 in the United States. Discussed were the consumer price index, the imports and exports, the unemployment rate, and finally the gross domestic product. By seeing how these all went it will be open for people to take the given data analyzed in this paper and come up with their own interpretation of the data. This is an analysis of the United States economy for the years 2001-2003.
Works Cited
1.http://money.cnn.com/2003/11/25/news/economy/gdp/?cnn=yes
2.http://www.bls.gov/
3.http://www.ita.doc.gov/td/industry/otea/usfth/tabcon.html
4.O’Sullivan, Arthur and Sheffrin, Steven M. Economics Principles and Tools. Third Edition. Prentice Hall. Upper Saddle, New Jersey. 2003.
In this essay, the author
- Analyzes the consumer price index, which shows that people are willing to pay more for goods produced. the drop decreased further by the end of the fourth quarter in 2001, ending in december at 1.6%.
- Explains that unemployment affects everything from how many goods are produced, to how much money is added up for being pay for services.
- Explains that o'sullivan, arthur and sheffrin, steven m. economics principles and tools. third edition. prentice hall. upper saddle, new jersey.
- Explains that the consumer price index, imports and exports, unemployment rate, and gross domestic product will be discussed in the analysis of the united states economy from 2001 – 2003.
- Analyzes the impact of the consumer price index on the economy in 2002.
- Explains that the monthly unemployment rate in 2002 was around 5.7%, and the annual percent averaged out at 5.8%, which was an increase of 1.2% from the previous year.
Related
- opinion
- explanatory
- comparative
- analytical
- Current Macroeconomic Situation in the United Statesopinion essayThe United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consumer spending, increased investments by businesses, reduced rate of unemployment, and reduction in government cut. Some analysts have also stated that the country’s economy will strengthen in 2014 with an average of 2.7 percent or more. However, these predictions can only be understood through an analysis of the current macroeconomic situation in the United States.
In this essay, the author
- Explains that the united states is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession.
- Opines that the u.s. economic growth will strengthen in 2014 with an average of 2.7 percent because of improved economic conditions and europe's emergence from its long slumber.
- Explains that the unemployment rate is still high, despite a yearly gain of nearly 2.3 million net new jobs. the lower-than-expected job growth is fueled by government hiring, weather, and obamacare.
- Opines that the rate of inflation will remain below 2 percent as economic growth increases moderately in 2014, due to decrease in energy prices and small increase in food prices.
- Opines that the united states is not concerned about recession because of moderate economic growth and improved economic conditions. the u.s. economy will have the ability to survive tribulations in emerging economies.
- Explains that the u.s. economy is still at a relatively slow pace of growth that has continued since the 2008 global recession.
- Argues that the federal open market committee should base its employment policy on the level of employment or unemployment through substantial improvement in labor market outlook.
- Concludes that the current macroeconomic situation in the united states is characterized by moderate growth because of better economic conditions brought by the events of 2013.
883 wordsRead More - How Has The Macroeconomy Affected my Life?explanatory essayOne of the most important ways of dealing with the American macroeconomy is to measure the overall economic well being of the economic system. The most common way of doing this is by calculating the gross domestic product (GDP). According to Mankiw, the "gross domestic product is the market value of all final goods and services produced within a country in a given period of time" (330). Essentially, the GDP measures the overall economic productivity of a society. The American gross domestic product has only dipped significantly once in my lifetime, and that was in 1982, the year of my birth. Since then, the American GDP has clim...
In this essay, the author
- Explains that they were privileged to have been born into a middle-class family in the latter part of the twentieth century in america. they have hardly noticed their relationship to the macroeconomy throughout their life.
- Explains how the american macroeconomy measures the overall economic well-being of the economic system by calculating the gross domestic product (gdp).
- Explains that if the gdp were to decline, that would mean that consumption was decreasing, prices would fall, revenues would decrease, and businesses would lose money.
- Explains that while the american economy has been strong throughout their life, there have been periods of recession. the recession had the greatest effect on their family through its impact on the stock market.
- Explains that the american economy has experienced inflation every year throughout their lifetime, and it did so for many decades before they were born.
- Opines that the macroeconomic system that their family existed in has allowed them to go about their microeconomic lives without concern.
1329 wordsRead More - THE CURRENT ECONOMIC SITUATIONexplanatory essayIntroduction This paper will be a discussion of the current economic condition of the United States and this writer’s opinion on how it can be changed. Unemployment is high and needs to be reduced to full employment. We will explore the inflation rate, GDP growth and other factors of our current economic situation.
In this essay, the author
- Explains that unemployment is high and needs to be reduced to full employment. they will explore the inflation rate, gdp growth, and other factors of our current economic situation.
- Opines that the unemployment rate is not what we would like but it is getting better and will eventually get back to full employment.
- Explains that declining labor force participation rates limit growth, which in turn limits economic growth. the projected growth in the workforce from 2012 to 2022 is projected to be.5% per year.
- Explains the latest annual inflation rate for the united states is 1.5% through the 12 months ended december 2013 as published by the us government on january 16, 2014.
- Explains that the bls expects the gross domestic product to reach $14.7 trillion in chained 2000 dollars by 2014, an increase of $3.9 trillion over the 2004–14 span.
- Opines that the federal reserve board's expansionary monetary policy has spurred economic growth, despite low business and consumer confidence.
- Cites the u.s. department of labor's (2014, february 14). the employment situation - january 2014.
665 wordsRead More - Recession and its Ill Effectexplanatory essayIt has been 5 years now, but the world economy is still hovering over with ill effects of global economic recession. Different economist define recession in a different way but one common definition which can be derived is that recession is long lasting and prime reason for slowdown to economic activity(GDP). In terms of measuring the effects of recession, the broadest indicator of economic activity is real gross domestic product(GDP). Our following section will discuss how the economic activities in US has actually decreased since the beginning of market turmoil.
In this essay, the author
- Explains that the world economy is still hovering over with ill effects of global economic recession. the broadest indicator of economic activity is real gross domestic product.
- Explains that consumer consumption is the most integral component of gdp calculation and accounts for 70% of total consumption expenditure.
- Explains that private investment was the most severe area in which recession had its deep impact. economists have recognized the central role of investment and technology as key contributors to economic growth.
- Explains that with reported job loss and high level of unemployment, it was obvious that income of ocnsumers was decreasing and with forecasted low level, lower investment and finally a negative effect on gdp factor.
- Explains that the destruction of the us banking system and limited access to low-cost credit affeced the economic activity.
- Explains that foreign exports are the last compnonet of gdp factor and the import market was deeply affected by us recession.
- Explains that economic recession in us had a severe impact on the job and employment of the people. the us labor agency reports that there were 15 million people who were unemployed by 2011.
- Explains that us dollar is used for most of the international transactions. slow economic growth in us, the overall demand in the economy had a severe fall.
- Explains how the us economy affects the world economy. irons, j. the long-term impacts of the recession.
602 wordsRead More - According to the U.S. Department of Commerce, the Real GDP increases at a rate of 3.6 percent in the third quarter of 2013. Also, the Federal Reserve Economic Data (FRED) announces that the unemployment rate has reached its lowest state at 7 percent since 2009. As for the inflation rate, the U.S. government published the latest annual inflation rate, which is 1 percent. Compare these data to the 2008-2009 recessions, the GDP growth rate for 2008 is -2.7 percent and -5.4 percent for 2009. As for the unemployment rate for 2008-2009 recessions, the peak was at 10 percent. For inflation rate during the 2008-2009 recessions, the base is at -2.1 percent. In contrast with the previous recessions in 2001, the 2008-2009 recessions drop the private consumption, lowering the consumer confident. Because of this, the recovery period will take longer than the previous recessions....
In this essay, the author
- Opines that the fed should stay with its policy until there is evidence of an overwhelming economy before thinking about an exit strategy.
- Compares the gdp growth rate for 2008-2009 recessions, which is -2.7 percent, with the unemployment rate of 10 percent.
- Explains that some are concerned about the long run effect of the unemployment rate, one of them which might cause a permanent damage on the economy based on hysteresis.
- Explains that changes in interest rates affect consumption spending, inflation, unemployment, employment, and gdp. if the fed decides to use an exit strategy to increase rates soon, it has two ways to change the interest rate.
- Opines that the fed's economic models should focus on global trade.
- Opines that the fed should stick with expansionary monetary policy because the economy is recovering from the 2008-2009 recessions.
850 wordsRead More - Economic Indicator Forecastcomparative essayAn economic indicator is a statistic of the current status of the economy. This can predict how the economy may perform in the future. Investors and other private or government organizations use this information as a tool to make business decisions. By gathering historical data about the economy and comparing it to current trends, one can compile a snapshot of economic fluctuations. The direction of an indicator may vary according to changes in the economy. The indicator can be leading, lagging, or coincident. Leading indicators are changes before the economy has recognized the changed. Lagging indicators do not change until a few quarters after the economy has change. Coincident indicators move at the same time as the economy (The Library of Congress, 2005). Some of the common indicators are GDP, Unemployment Rate, Inflation Rate, Capacity utilization, Auto sales, and Personal income. As the explanation of these six indicators will be use to forecast the future of the economy, the trend of these indicators will also be used to evaluate the economy's historical and future outcome.
In this essay, the author
- Explains that an economic indicator is a statistic of the current status of an economy, which can predict how the economy may perform in the future.
- Explains that the congressional budget office projects that inflation, as measured by the year-to-year change in the consumer price index for all urban consumers (cpi-u), is projected to decline from 2.8% this year to 2.3% next year.
- Predicts that inflation rate in the u.s. economy will decelerate in 2007 and hold steady over the following two years, according to 49 forecasters surveyed by the federal reserve bank of philadelphia.
- Explains that inflation has fluctuated greatly over the last half century, ranging from zero inflation to 23% inflation. the fear of inflation precludes government from expanding the economy.
- Reports that capacity utilization for the entire industry was unchanged in october and expected to increase in the next six months. utilization rates bottomed during the first quarter of 2007.
- Explains that the fed assumes that growth in capacity in any given year follows a straight line, so one can predict the capacity utilization rate accurately based on the assumption for production growth
- Explains the financial forecasting center's u.s. gross domestic product gdp forecast.
- Explains that the capacity utilization rate for manufacturing indicates that capacity in the sector is not strained enough to increase inflation.
- Compares the cnbc report and the financial forecast center's estimate of gdp for the next 6 months. the panel of 52 economists projected growth of just 2% this year.
- Explains that the u.s. civilian unemployment rate of 4.73% is projected by march of 2008. the federal reserve bank of philadelphia agrees with this estimate.
- Compares bronson capitol market research and u.s. commerce and international trade commission sales figures.
- Explains that personal income comparisons were made using bureau of economics, which showed increases in incomes. in october 2007, the forecast was up.3%.
- Cites bronson, b., bureau of economic analysis, personal income and outlays, cnbc, economists cut forecasts for us growth in 2008.
- Cites the organization for economic co-operation development's annexe table 13 - unemployment rates.
1945 wordsRead More - Trade Weighted Currency Indexexplanatory essayA monthly release from the Bureau of Labor Statistics (BLS), the PPI shows trends within wholesale markets, manufacturing industries, and commodity markets. All industries that produce physical goods that make up the economy of the United States. They are included, but not imports. Taking into consideration, the PPI measures the purchases of goods and services completed by urban households, the average changes over time in the sale prices received by domestic producers, and the sales at all production levels for producers in the United States. This includes sales of unfinished products used throughout the production and production chain. The PPI can serve as a principal indicator of definitive price changes at the consumer level, and of inflation if the trend in the PPI is higher. Low inflation is good for stimulating consumer spending, corporate profits and, ultimately, the stock market. The rise in inflation can be a sign of an overheated economy and potentially higher interest rates. On the other hand, the PPI can give analysts, business executives, and investors with information on price trends at various stages of the production process. This is useful for companies in making capital investment decisions, for analysts in tracking economic trends and for investors looking for clues about future inflation. Also, the PPI can offer analysts, business executives, and
In this essay, the author
- Explains that inflation affects the relative value of currencies and determines future policy adjustments by governments and central banks.
- Explains the concept behind a trade-weighted currency index. the broad frb index consists of 26 currencies, where the commercial weights are revised every year.
- Explains that the consumer price index (cpi) is collected by the bureau of labor statistics.
- Explains that the producer price index (ppi) is a weighted index of the prices measured at wholesale, or producer level.
- Explains that the price index closest to the gdp deflator is the producer price index (ppi) with fixed pesos corresponding to a basket representing national production.
1182 wordsRead More - Lagging Indicatorsexplanatory essayThe economy works in a bunch of strange ways. Changing all the time. This is because of leading and lagging indicators. Indicators can control the economy progresses or get worse. Leading indicators, defined as a change prior to economic adjustments and, as such, can be used to predict future trends. This would include stock market, inventory levels, and the housing market. Lagging Indicators reflect the economy’s historical performance and changed to these are only identifiable after and economic trend or pattern has already been established. The government has an interesting way of using these indicators to their advantage, helping the economy so it doesn’t grow too fast or grow too slowly. This helps the economy so we don’t fall so far that it will be hard to get back up. We did this once during the great depression when there was no money in the economy, businesses were shutting down which left the government to pay the businesses to keep it open. Which, of course, put us into a debt. Us, as american citizens are “asked” to pay that debt off through our consumer spending and paying taxes. Are we on our way towards this? I do not believe so. In this essay, I will show you the reasons I believe that the economy is getting better through 2 leading indicators and 1 lagging indicator.
In this essay, the author
- Explains that the economy works in a bunch of strange ways because of leading and lagging indicators.
- Explains that the housing market and manufacturing activity are two of the most confusing indicators in the economy.
- Opines that manufacturing activity influences gdp growth, which is when there is more demand for consumer goods.
- Explains that the unemployment rate is one of the most important lagging indicators because it’s simple: the more people able to have jobs, the better the economy must be.
- Explains that the economy's predictions are not always right, but these leading and lagging indicators are here to help you decide what you believe.
824 wordsRead More - United States Identityanalytical essaySimilarities within the economy of the United States expose the American economy as the “Land of the Free”, “Home of Brave”, and “The nation filled of opportunity”. American economics is not like any other
In this essay, the author
- Explains that the united states of america can be identified as the land of the free, home of brave, and the nation of opportunity.
- Explains that american economics is not like any other national economy in the world. many immigrants travel to america to take advantage of the many financial opportunities it offers, with hope of improving their lifestyles.
- Explains that the declaration of independence was the first step colonists took in breaking away from the tyrannical rule, britain had over the colonies.
- Analyzes how the information provided exposed the differences among the political parties by explaining that democrats prefer more government regulation and control than the republicans do.
- Explains that while america offers its citizens economic opportunities, many have experienced troubles with finding work in the united states.
- Explains that american society restricts its citizens' political freedom by constantly exposing themselves to bias information in the news on recents politics.
1041 wordsRead More - 2008 Recession Essayopinion essaySince the birth of the United States over two-hundred forty years ago, the citizens of this country and of all civilization throughout the world, have seen this country grow to extraordinary heights in terms of production, the armed forces, population, and also, the economy. Likewise, the world has also seen the United States economy drop tremendously during times such as the Great Depression of the 1930s, and most recently during the housing market crash of 2007. The changes in politics that occur on a yearly basis have both created a positive and negative outlook of today’s economy. The most recent and important political change that will decide the growth or decline of the economy for years to come was the inauguration of the 45th President,
In this essay, the author
- Opines that the u.s. economy is heading towards recession due to political changes, such as the inauguration of donald j. trump.
- Explains that the 2008 recession was caused by the decline of manufacturing orders and the housing market crash, which created a domino effect that led to recession.
- Opines that the us economy is headed for a recession, but it's also for good reason to stay optimistic in hopes that it will continue to grow.
635 wordsRead More