The Growth Rate Of The Gdp - 1633 Words

The GDP growth rate per year is derived from the reported GDP (in dollars $), therefore, the GDP ($) for 2004 and 2014 is needed in order to get a single summary growth rate for all 10 years (2004-2014). According to World Bank, the U.S. GDP for 2014 was $17,419,000,000,000.00 and the GDP for 2004 was $12,274,928,000,000.00. As a result, we get an annual GDP growth rate of 3.56% over the 10 years (2004-2014). The inflation rate informs us about the purchasing power of our currency; in other words, the higher it is, the weaker our currency becomes and the worse our economy becomes. However, at a moderate amount, it can actually stimulate the economy. In this case, the inflation rate is based on the consumer price index, which means we need the ending price index for 2014 and the beginning price index for 2004 in order to find the inflation rate over the 10-year period. As reported by World Bank, the consumer price index for 2014 was 108.6 and the consumer price index for 2004 was 86.6. Thus, the inflation rate over the past 10 years is 2.3%. This means we are a little over the Federal Reserve’s goal of 2.0% inflation, but with the right actions, the Federal Reserve could soon reach their goal. The unemployment rate is a good indicator of the percentage of people in the labor force are currently attempting to find work. However, the rate does not take into account individuals that aren’t showing interest in finding work or that aren’t in the process of securing a job. InShow MoreRelatedExpected US GDP Growth Rate Going Forward829 Words   |  3 PagesExpected U.S. GDP Growth Rate Going Forward As the newly appointed President of the local Chamber of Commerce, I will make a presentation of the trends, statistics and forecasts of the U.S Gross Domestic Product to give the business leaders an idea of what is the outlook of our economy. Based on the economic statistics from the Bureau of Economic Analysis (BEA) among other sources, I will provide a detailed up-to-date image of the United States economy. The one way one can comprehend the UnitedRead MoreFiscal Policy On Employment, Potential Gdp, And The Economic Growth Rate935 Words   |  4 Pagesof tax revenues, outlays, deficits, and debts†. The second object is to â€Å"explain how fiscal stimulus is used to fight a recession†. The third objective is to â€Å"explain the supply-side effects of fiscal policy on employment, potential GDP, and the economic growth rate†. The federal budget has two main reasons it was created. The first is to fund the activities of the federal government. The second was and still is to attain macroeconomic objectives. In order to create the Federal Budget, the PresidentRead MoreThe Correlation Between Three Different Women s Rights Change Rate And The Real Gdp Growth Rate926 Words   |  4 Pages Methodology and Results Combining with literature review, I collect the US real GDP per capita from 1985 to 2000 data and calculate the maximum, minimum, average value and growth rate of US real GDP per capita by using the formula g=[(X(t+1)/(Xt)](1/n)-1. Human rights is a subjective conception that is hard to quantify. So I adapted and rearranged the authoritative data of the women’s different rights index from CIRI Human Rights Project. And I calculated all the maximum, minimum, and averageRead MoreDifference Between Real Gdp And Nominal Gdp1395 Words   |  6 PagesThere exist some differences between real GDP and nominal GDP. Real GDP is the measure (macroeconomic measure) of economic output that has been adjusted for a change in price. The meaning for this adjustment is that inflation or deflation has been factored in the computation of real GDP. It is the aspect of adjustment for price changes that makes a transformation of the money value to become a nominal value (Tucker 230). Nominal GDP r efers to the value of Gross Domestic Product that has not factoredRead MoreDeveloping A Countrys Economic Data1489 Words   |  6 Pagesfactors can be analyzed separately but they are all interconnected which is why a country’s economy is so dependent on their individual success. The government’s goal is to prioritize economic growth in order to maintain a high standard of living for its citizens. Key Economic Factors Gross domestic product (GDP), unemployment, and inflation make up the most important economic indicators for Canada’s economy. As previously mentioned, these factors and interrelated but will be analyzed individually forRead MoreEconomic Growth Between Emerging And Developed Economics Essay1181 Words   |  5 PagesNowadays, the various economic growth patterns are very common in both emerging and developed economy. The countries that are having most advanced economy and highly developed capital markets with high levels of liquidity is called developed country. Developed countries are mostly located in North America and Western Europe, including nations like the U.S, Germany, U.K., Canada, Australia, New Zealand and Japan. Emerging countries can be identifying with rapid growth rate and development but lower perRead MoreAn Economic Comparison Between United Kingdom And The United States1692 Words   |  7 Pagescould still be made to distinguish the country with the better e conomic growth performance. Important indicators when comparing economies is economic growth rate, which is a measure of the yearly rate of development rate of GDP using the market prices (Ros, 2013: 26). Another indicator is the GDP, which is defined as the total amount of goods and services produced in a country per year (Mankiw, 2009: 521). Also, the inflation rate is used, which is a continuos increase in the prices for goods and servicesRead MoreMacroeconomics for Business Debt Sustainability1665 Words   |  7 Pagesinterest rate, the inflation rate, the real GDP growth and primary deficit remain constant for the next year, we can compute the projected next year end debt as a percentage of GDP by using the equation: dt+1=dt+i-Ï€dt-grdt-st+1 In this case, dt is the public debt (as % of GDP) of 2011, which is 88%; i is the government interest rate 7% according to our assumption; Ï€ is the inflation rate, which was 2% if it is held constant constant in the next year; gr is -1%, the real GDP growth; and -st+1Read MoreEconomic Growth Of The United States Essay1119 Words   |  5 Pagesmacroeconomic issue over the rate of economic growth. This issue consists of the potential regression of the United States, Gross Domestic Product, commonly known as GDP. GDP can be defined as the market value consisting of all the goods and services that are produced in a country that falls within the given time period, usually marked as a fiscal year. In terms of economic growth, GDP will always have a direct correlation to growth within a country. An increase in GDP will lead to an increase inRead MoreEconomic Growth Of A Recession1433 Words   |  6 Pagessloping growth rate. Additionally, recessions tend to have a time range o f two or more periods/quarters of falling real gross domestic product (GDP), consequently from the negative sloping economic growth rate. In order to properly define causal factors of a recession, it is most appropriate to elucidate what GDP’s meaning. GDP = I + C + G + NE GDP provides a monetary value of all final goods and services produced within a nation in a particular year. The independent variables make up the GDP, which