Take the below information regarding the US economy and transform it into a Rese
ID: 1219529 • Letter: T
Question
Take the below information regarding the US economy and transform it into a Research Essay. DO NOT COPY PASTE FROM INTERNET. Required in 24 to 36 hours
a) The US economy is one of the most developed economies in the world, among all economic parameters; the US economy is ranked above all. The nominal GPD of the US economy is calculated on $17,348 Billion. The GDP per capital is too high at $4,375. The US economy is growing at a rate of 2.4%, Investment is 5.3% exports and growing at 3.4% annually. Imports are at 3.8% and industrial production is at 2.9%.
The unemployment rate in the US is at 6.2 and the public debt to GDP ratio is 105%.
Inflation rate is 0.7%
Policy interest rate is 0.25% and Trade balance is $-741.5 Billion
b) Inflation is too low as 0.7% therefore we cannot attest that there is inflationary gap or deflationary gap in the US economy.
c) The country should adopt optimal mix of both fiscal cum monetary policy in order to remove the temporary bottlenecks.
d) The real GPD of economy is growing nearly at the rate of 4% per annum.
e) Per-capita GDP of US economy is growing. Since the rate of growth of per capital GDP-growth is nearly 4%. The variable is growing at optimum rate nearly to keep the economy in balance from last couple of years the data of real GPD is growing.
f) Current unemployment rate in close to NAIRU, for NAIRU the rate of 4% is considered but it is 6% in case of US i.e 9t is higher.
g) The country is currently in “Boom stage” of business cycles where investment is too high. Inflation is low as 0.7%. We can assume there is inflationary or deflationary gap.
h) The US is currently following both fiscal and monetary policy, in case of recession it is following expansionary fiscal policy and in case of inflation, deflationary fiscal policy is leveraged.
i) The country is presently following a flexible exchange rate.
j) US economy is top performer; it is showing continuous increase in trend in every economic parameter in terms of GDP. The GPD per capita country is on the verge of top performers. The only problem with the US economy is the high unemployment rate at 6% which needs to be addressed and decrease. The US’ inflation rate is not an issue for the economy as it is currently at low inflation rate. As the country should address unemployment rate they should use a judicious mix of both fiscal and monetary policy
Explanation / Answer
Topic – Research Essay on the study of the performance of the US Economy
Introduction
The US economy is one of the most developed economies in the world, among all economic parameters,
Significance of the study of US Economy
The US economy is ranked above all.
Background of the economy
Purpose of the Research Essay
To highlight the positive and growing growth rate features of the US economy.
Organization of the research Research Essay
To display the various economic parameters of the US Economy showing the growing sectors and also concern sectors.
Current Economic Performance and Economic Indicators
S.No.
Economic Indicators
Revenue
Percentage
Remarks
1
Nominal GPD
$17,348 Billion
Positive Growth
2
GDP per capital
$4,375
Positive Growth
3
Growth Rate
2.4
Positive Growth
4
Increasing Investment Export Growth Rate
5.3
Positive Growth
5
Annual Growth Rate of Investment
3.4
Positive Growth
6
Imports
3.8
Steady
7
Industrial Production
2.9
To improve
8
Unemployment Rate
6.2
Concern Area
9
Public debt to GDP ratio
105
To address
10
Inflation rate
0.7
Positive Growth
11
Policy interest rate
0.25
Positive Growth
12
Trade balance
$-741.5 Billion
Steady
13
Inflation Rate
0.7
Positive Growth
14
Real GPD of Economy
4.0
Positive Growth
15
Per-capita GDP
4.0
Positive Growth
16
Current Unemployment Rate
6.0
Concern Area
Economic Parameters Used
The following economic parameters have been taken into account while discussing the state of the US Economy : GDP – Nominal & Real / Growth Rate / Investment / Annual Growth Rate /Exports / Imports /Industrial Production / Public Debt / Un-employment Rate/ Per-Capital GDP/ Real GDP.
Conclusions of the Research Essay
1)Positive Aspects of growth rate of US Economy
It is showing continuous increase in trend in every economic parameter in terms of GDP. The GPD per capita country is on the verge of top performers.
2)Concern Areas of US Economy
High unemployment rate at 6% has to be effectively tackled by using a Judicious mix of both fiscal and monetary policy to tackle high un-employment rate.
S.No.
Economic Indicators
Revenue
Percentage
Remarks
1
Nominal GPD
$17,348 Billion
Positive Growth
2
GDP per capital
$4,375
Positive Growth
3
Growth Rate
2.4
Positive Growth
4
Increasing Investment Export Growth Rate
5.3
Positive Growth
5
Annual Growth Rate of Investment
3.4
Positive Growth
6
Imports
3.8
Steady
7
Industrial Production
2.9
To improve
8
Unemployment Rate
6.2
Concern Area
9
Public debt to GDP ratio
105
To address
10
Inflation rate
0.7
Positive Growth
11
Policy interest rate
0.25
Positive Growth
12
Trade balance
$-741.5 Billion
Steady
13
Inflation Rate
0.7
Positive Growth
14
Real GPD of Economy
4.0
Positive Growth
15
Per-capita GDP
4.0
Positive Growth
16
Current Unemployment Rate
6.0
Concern Area
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