Term Paper on "Economic Analysis the United States"
Term Paper 5 pages (1318 words) Sources: 4 Style: APA
[EXCERPT] . . . .
Economic AnalysisThe United States is the country with the world's largest Gross Domestic Product, which was estimated to be $13.22 trillion dollars in 2006. The United States economy is typical for countries with "market economy"; it's often called "mixed" economy as majority of microeconomic decisions made by big corporations and firms of private economy sector is also regulated by government. Current U.S. economy is considered to be one of the most stable and strong economies due to a high GDP with reasonably high and stable GDP growth, low unemployment rate and high standards of living. Yet, recent geopolitical issues, high oil prices and external debt create some economic concerns. National debt, which includes interests and government deficits in the year of 2006 was nearly equal to $9 trillion (or nearly 64% of GDP).
The current economy of the United Stated can be characterized by recovery from recession of 2001. Yet, there are lots of economic factors which prevent it from faster recovery process: budget deficit, high oil prices and war on terrorism. If we have a look on the dynamics of GDP growth rate we won't see any considerable positive shifts since 2001. Even though that growth results of 2005-2006 (3.64% and 2.24%) are relatively optimistic, general picture shows that recession effects have not been overcome yet and stagnation is obvious in many areas. In the business cycle the current position of the U.S. economy would be little higher than a recovery point, as GDP has been growing since recession of 2001, but the growth decelerated during last 18 months as we can see in Table 1, which means that currently U.S. economy is coming to its peak.
<
download full paper ⤓
Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Growth rate 2,98 4,49 4,30 0,77 2,43 1,03 1,95 3,64 2,24 1,85
Graph 1. Business cycle
Unemployment and wage issues
Even though that unemployment situation is the U.S.A. is getting better and the rate of unemployment gradually reduces it's difficult to talk about considerable positive changes as wages remain the same, especially in private sector of economy. The situation in different branches of economy is different, yet it's quite obvious that economic growth of only 1% in the first quarter of 2007 doesn't give any basis for optimistic forecasts, as healthy GDP growth should be about 3%. Such deceleration in growth also expresses in less activity of investment market and consumption market, which lead to smaller demand and which as a result lead to less job demand.
Today American private sector market experiences growth only in education, health, leisure and hospitality sector, yet it only gave the growth of 107,000 jobs. The situation in the productive sector of economy is less optimistic, as "factory sector has contracted for each of the past 12 months, and is down 191,000 over the past year, and 1.8 million over the economic recovery that began in November 2001"(Bernstein, 2007).
Specialists mark that relative progress in employment is observed only in non-productive private sector, "that do not typically respond to underlying weakness in the economy. Wage pressures are subdued, and diminished labor force participation rates, especially for minorities, also suggest cyclical weakness" (Bernstein, 2007).
It means that we can not speak about continuation of recession, but nevertheless, absence of wage acceleration questions achievements of employment growth. In order to make a more accurate evaluation of wages growth we need to compare wage growth rate with current inflation rate. Average inflation rate in 2005-2006 was on the level of 3.24%-3.39%, current inflation rate is approximately equal to 2.54%. So if we compare wage growth to inflation rate, we would see that real income didn't grow at all as real income growth is on the level of approximately 0.7%.
Graph 2
Table 2. Current Inflation Rate (from (http://www.spiritone.com/~moore/inflation.htm)
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov… READ MORE
Quoted Instructions for "Economic Analysis the United States" Assignment:
Research Paper Outline:
Currently, where are we in the business cycle?
Are we in an expansion or a contraction?
Is the economy growing or stagnant?
What has been happening in the GDP, unemployment, and the real growth rate?
What has been happening to exports/imports, average prices?
What is the rate of inflation/deflation?
What are analysts saying about prices?
Is there a shortage of raw materials, are inventories being depleted too quickly, or do we have a situation where the inventories are piling up and workers being laid off?
What has happened to consumer spending?
How is the stock market doing?
Are consumers still spending or are they turning wary?
Use the AS-AD model for data and numbers gathered and to show proposed changes and present arguments.
Other questions...
What kind of macroeconomics policies have been followed lately?
Are they in expansionary or contractionary fiscal policies?
What has been happening to government spending?
What tax cuts are being proposed? Have tax cuts been effective/appropriate?
What kind of monetary policies have been followed?
Have there been interest rate cuts and what are analysts saying about these?
***The paper should focus on output, inflation, growth, trade, unemployment, interest rate, and the exchange rate in the last six months for the U.S. It should critically analyze economic policy and its impact on the economy.
Paper should be double spaced and organized with sections, relevant data, charts, and graphs with sources and explanations.
The book used for this course is Macroeconomics (Parkin) 7th Edition.
How to Reference "Economic Analysis the United States" Term Paper in a Bibliography
“Economic Analysis the United States.” A1-TermPaper.com, 2007, https://www.a1-termpaper.com/topics/essay/economic-analysis-united-states/55324. Accessed 1 Jul 2024.
Related Term Papers:
Economics in the USA Essay
![Paper Icon](https://www.a1-termpaper.com/images/term-paper-3.png)
Economics in the U.S.A. -- The Gambling Industry
Industry Overview
The bases of the gambling industry were set by the former mafia clans, during a time in which the United… read more
Essay 4 pages (1457 words) Sources: 3 Style: MLA Topic: Economics / Finance / Banking
United States Trade United States' International Term Paper
![Paper Icon](https://www.a1-termpaper.com/images/term-paper-3.png)
United States Trade
United States' international trade in goods and services for the month of October 2007 reported a $57.8 billion deficit. The deficit emerged due to the $141.7 billion… read more
Term Paper 2 pages (507 words) Sources: 1 Topic: Economics / Finance / Banking
Slow USA Econ Recovery Chapter IV Term Paper
![Paper Icon](https://www.a1-termpaper.com/images/term-paper-3.png)
Slow USA Econ Recovery
Chapter IV -- Summary
Chapter V -- Recommendations
There has always been a disharmony between economic theory and economic reality as it relates to the actions… read more
Term Paper 20 pages (5194 words) Sources: 20 Topic: Economics / Finance / Banking
United States of America's Trade With Kazakhstan Term Paper
![Paper Icon](https://www.a1-termpaper.com/images/term-paper-3.png)
Patterns of the United States Trade with Kazakhstan
Today, the Republic of Kazakhstan has emerged as both a growing political and economic powerhouse among the former states of the Soviet… read more
Term Paper 9 pages (2426 words) Sources: 4 Style: MLA Topic: Economics / Finance / Banking
United States Should Be Against Immigration Research Paper
![Paper Icon](https://www.a1-termpaper.com/images/term-paper-3.png)
Immigration: Why the United States Should Be Opposed to It
Today, the U.S. plays host to millions of both legal and illegal immigrants. Those who oppose the current levels of… read more
Research Paper 6 pages (1887 words) Sources: 15 Topic: American History / United States
Mon, Jul 1, 2024
If you don't see the paper you need, we will write it for you!
We can write a new, 100% unique paper!