“Macroeconomic indicators include economy-wide phenomena such as unemployment rates, national income, rates of growth, gross domestic product, inflation, and price levels” (Page & Stevens, 2005).
The US economic growth may be slowing as consumer spending slowed to a more moderate pace. According to the Commerce Department, the total value of goods and services slowed to 2.3% with a previous rate of 1.8% last year. The gradual decrease in growth indicates that the economy may be reducing to a more sustainable pace, and avoid another intererst rate increase from the Fed. The increase in employment costs may yet sway the Fed to to raise interest rates, but July will be decisive. Consumer consumption has fallen from 6% in increase in 1998 to 4% in 1999. The fall in consumer consumption has had its toll on the GDP as it too has slowed. Again, the economy has continued its growth, but the vigorous rate that it has been cruising along is falling.
“US Economy Expands at 4.1 Percent Rate.” ABC News. ABC News Network, n.d. Web. 21 Dec. 2013.
According to the Bureau of Labor Statistics, the unemployment rate in November is 7.0%, reaching the all-time low since 2009 but still higher than the pre-crisis level; according to the US Inflation Calculator, the inflation rate reached 1.0% in October, hitting the lowest since 2010. The GDP growth rate is 3.6% in third quarter, which shows an slight increase from second quarter, shown by data published by the Bureau of Economic Analysis. What are the main reasons as to why this recovery has been so lackluster? The first reason is that the 2007-2009 recession was caused by the housing bubble and the collapse of the housing industry, which normally kick-starts recovery. After the 2007-2009 recession, since the housing prices are unlikely to return to previous levels, the economy is taking longer to recover. The second reason is that globalization has caused domestic employment to rise slower than if all the increase in employment goes to domestic hiring. (Joel, 2013) Compared to the past, we have more imports than exports (Olney, 2013); as the economy recovers, a greater part of the increase in GDP goes to foreign economies instead of our own. Another main reason is that banks have been holding onto excess reserves instead of lending them out because of pessimism. Even though long-term interest rates are now lower, businesses still cannot invest if banks are not willing to lend. (Olney, 2013)
The economy in the United States was recently experiencing what is now called the Great Recession which occurred from December of 2007 to June of 2009. During this recession we experienced a decrease in our gross domestic product and experienced an increase to our unemployment. Since 2003 the American economy has been seen inflation rates as low as .1% in 2008 and as high as 4.1% in 2007. Rates such as these detail the increase and decrease in prices of products throughout the economy and has a considerable influence on the supply and demand of goods from cars to bread. In the past ten years inflation rates have continually seen positive values w...
The American economy has been skyrocketing during the past decade. Growth in fields such as output, price stability, consumer demand, labor markets, and productivity have been increasing at an alarming rate. This over flow of growth occurring within the country has brought a sense of safety to the American people and with increased spending based on the “wealth effect” the American economy looks to be evermore prosperous in the years to come.
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....
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.
Every few years, countries experience an economic decline which is commonly referred to as a recession. In recent years the U.S. has been faced with overcoming the most devastating global economic hardships since the Great Depression. This period “a period of declining GDP, accompanied by lower real income and higher unemployment” has been referred to as the Great Recession (McConnell, 2012 p.G-30). This paper will cover the issues which led to the recession, discuss the strategies taken by the Government and Federal Reserve to alleviate the crisis, and look at the future outlook of the U.S. economy. By examining the nation’s economic struggles during this time period (2007-2009), it will conclude that the current macroeconomic situation deals with unemployment, which is a direct result of the recession.
The second portion of macroeconomics is macroeconomic fundamentals. Consumer price index was in the fundamentals to talk about food and beverages housing , transportation metal gear ,and recreation ,education and communication and other goods and services that may be overlooked we talked October our temperatures in the basket market economy and we discuss the percentage of change in income