Inflation And Unemployment Rate In The United States

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Over the last few years GDP, inflation, and unemployment rates have fluctuated. Currently, they seem fairly stable. GDP is at a 2.1% growth rate. The trend hasn’t changed much over time. It seems that the only thing that has really shrunk throughout time with GDP is the amount of exports the US sends out, whereas personal consumption, government spending, and investment added ‘percentage points’ to the growth rate. With the growing GDP, unemployment rate appears to be decreasing. While it is at 4.5%, this is significantly lower than it has been in the past. The growth of GDP has allowed for new investments in technology and being able to find new ways to produce goods and services, thus causing problems with unemployment. Despite the fact…show more content…
And, many of the jobs that they originally were going for are unavailable, they are unable to find work in any field because they don’t have the required degree. The inflation rate of the United States is at a stable place. With a rate of 2.4%, it is in the area desired by both consumers and producers. People are able to purchase goods and services at a fairly reasonable price while producers are able to make a little more money from slightly increased prices. With a stable inflation rate allowing for a more stable economy, the unemployment rate continue to decrease because businesses may have more funds in order to keep more people employed. Many things go in to the determination of inflation, and shelter and medical care have remained fairly constant, meaning that their rates haven’t changed much, which makes it easier for people to afford it for longer. However, food and transportation rates have increased, which causes problems for some people who can’t afford to get places when they need to or to have as much food on the table for their families. But, these rates are still at a reasonable place, making the economy more stable as it continues through the…show more content…
The unemployment rate was going down, but the inflation and GDP growth rate were constantly fluctuating. Starting in 2003, the GDP growth rate was at a meager 2%, but that quickly jumped to 7% by 2003. Unemployment went from nearly 6% in 2002 down to roughly 4.5% by 2007. The rate of inflation, between 2004 and 2006, varied around the 3% mark, hitting a max of 4.7% and a minimum of roughly 1.7%. The data from the graphs shows that the rates of GDP and inflation began to drop more significantly as 2007/2008 was approached, and the unemployment rate began to skyrocket. The recession wasn’t a good time for the economy of the United States. There wasn’t much income, prices dropped, even though this didn’t benefit consumers much because they couldn’t afford it anyway, and many people lost their jobs. Simply looking at the growth rate of GDP shows that something was not right. By January of 2009, the rate had dropped to -8%. Unemployment jumped from a rate of 5% to 9% in less than a year. So many people lost their jobs because there wasn’t enough money in the economy to keep them around. Even today there are still a lot of people that are unemployed because they cannot find work. The inflation rate during the recession increased to 4% in January of 2008. By July, it hit at nearly 6%. But, by July of 2009, it rapidly decreased to 0%. The recession hit the United States economy pretty hard. People couldn’t find
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