Macroeconomics In The United States

Government activities have a powerful effect on the US economy in stabilization and growth which is the most important are. The federal government guides the pace of economic activity, attempting to maintain steady growth, high levels of employment, and price stability. They do so by adjusting spending and fiscal policy- tax rates- or managing money supply and controlling use of monetary policy-credits. It slows down or speeds up the economy’s rate of growth, which affects the level of prices and employment. After the Great Depression in the 1930’s, recession (high unemployment) was

Gross domestic product is the market value of final goods and services produced within a country in a given period. Which this is commonly considered an indicator of the standard of living within a country. Real GDP on the other hand is measure of the value of economic output that adjust for price changes. Nominal GDP is a gross domestic product figure that has not been

GDP, or gross domestic product, is the sum total value of all goods and services produced by a country within a given year. To achieve this sum, everything produced and exported, all of the money spent by consumers and government, investments, and many other contributing factors are calculated and combined. A nation’s GDP is used as the main indicator of the economic status of that nation. In general, the higher a country’s GDP is, the greater the health of that country’s economy. However, GDP is not as helpful or accurate a calculation as “real GDP”. Real GDP is a term that refers

-The nation’s GDP is a good measure of its economic well being and progress because it represents the total value of all goods and services produced in an economy, and what a country produces and what it consumes are nearly identical.

Gross Domestic Product, also known as GDP, is defined as the dollar value of all final goods and service produced within the border of a country during a specific period of time, typically in one year. GDP measures the value for the whole country, and it also changes quickly. We can take a look at the trends of US GDP in the website of the U.S. Bureau of Economic Analysis.

GDP is the market value of all final goods and services produced within a country in a given period of time. GDP is basically the measure of a nation's total income and is an important tool in explaining a single society's economic well-being (Mankiw, 2009).

1. If an economy produces final output worth $5 trillion, then the amount of gross

The 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

Economy is an important part of any country, as it determines the country's wealth and power. The United States has an economy which is always changing. However, changes to the economy don’t always benefit the people. The reason for this affecting the people would be tax increase. Some people believe that increased tax rates will help the economy by bringing in revenue needed for it to thrive,while other believe that it wouldn’t motivate people to do things like invest. The economy, for many reasons such as the one listed, is important because it determines various factors such as a country’s military, the production of goods and services, and things like trade as well.

GDP consists of Gross (before taking into consideration the depreciation in the value of the product), Domestic (within the borders of a country) and Product which simply means a good or service. So what does it all mean when all these three factors are interlinked? GDP is simply the market value of all the final goods and services produced within a country in a given time period – usually a year (Parkin et al. 2005: 438).

The United States is currently experiencing a slow recovery from the recession of 2008-09. The current unemployment rate is 7.7%, which is the lowest level since December of 2008 (BLS, 2012). However, this rate is believed to higher than the rate that would occur if the economy was operating at peak efficiency, and it is also believed that there are structural issues still underpinning this performance. For example, the number of Americans who have exited the work force as the result of prolonged unemployment is believed to be higher than usual. In addition, the Congressional Budget Office (CBO, 2012) notes that long-term unemployment of greater than 26 weeks is at a much higher rate than normal, which will have adverse long-run effects on the economy, since workers with long-term unemployment often find their career paths derailed.

In earlier times Gross Domestic Product was one of the main indicators to measure a country’s wealth. Gross Domestic Product (GDP) is defined as the total value of all the goods and services produced by a nation in any given year ("Is the Gross Domestic Product (GDP) a Good Measure of Prosperity?"). There are two ways of calculating a country’s GDP. The first is the income approach which is calculated by adding the wages of workers, income from rent, interest and profits. The second, more common form of calculating GDP, is the expenditure approach. Here GDP totals consumption expenditure, investment, government spending and net exports. GDP statistics are considered to reflect a county’s economic output which could possibly lead to growth. However GDP is a measure of income and it should not be confused with wealth. Which is why most modern economists do not consider GDP to be a good measure of a

1. GDP is the market value of all goods and services produced within a country over a given period of time; it is primarily used to gauge a country's economy and is also viewed as the size of the economy at a particular period of time. Moreover, GDP is a comparison made between the previous year and the current year to check the country's economic growth over time. However, measuring GDP is complicated but at its most basic, its calculation is done by either adding up everyone's yearly earnings or adding up what everyone spent; logically both measures lead to the same total (United States Bureau of Economic Analysis, 2009).

Gross domestic product (GDP) of a nation is comprised of four primary components. These components; consumption, investment, government spending and net exports are the measure of the monetary value of all the finished goods and services produced within a country 's borders in over a given period of time. This can be broken down in any time frame but is normally used quarterly and annually. The GDP can be calculated as; GDP (Y) = consumption (C) + investment (I) + government spending (G) + net exports (NX) or Y=C+I+G+NX. The key word here is finished goods and not all goods.

The most common way to measure economic growth is using Gross Domestic Product (GDP). Specifically, real GDP is defined as the total value of everything produced in an economy the after removing the effect of inflation. GDP calculations include everything produced in the economy including services. Often real GDP is used to compare one period to the next to determine growth of periods of time. Economists have found various ways to delve into GDP including looking at the measure on a