Essay on Economic Analysis of The U.S. 2001-2003

2552 Words 11 Pages
Economic Analysis of The U.S. 2001-2003

     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
…show more content…
Obviously unemployed rate is defined as “the fraction of the labor force that is unemployed” . To define the unemployed is important as well, because it refers to those that have no job, but are actively looking for work, not to those who are not working and are uninterested in searching or getting a job . The reason that unemployment is so important in determining the economy’s success is because it is intertwined with the gross domestic product, as in when the gross domestic product falls, unemployment is increased, and when it rises, there is a decrease in unemployment . To make what is being explained clearer, when there is unemployment, production is down; therefore there is less money and goods produced out of the economy. This is how unemployment relates as well.
     The last indicator to be defined is probably the most the important of them all, and that is the gross domestic product. The gross domestic product is defined as “ the total market value of all the final goods and services produced within an economy in a given year” . There are two types of gross domestic product, real and nominal. Real GDP is adjusted to how prices have changed, as nominal GDP is the current price as it is calculated . There is so very much that goes into the gross domestic product that in this analysis only the percent change from the years will be shown as important. A percent that is positive is obviously
Open Document