Real Gross Domestic Product Of The United States And United Kingdom

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Real Gross Domestic Product Real Gross Domestic Product is the measure of the economy’s output of goods and services over a specific period of time. It is usually measured in comparison to the GDP’s of previous years. For instance, if a year-to-year Gross Domestic Product goes up by 2 percent, it is said that the economy has grown by 2 percent. On a more basic level, Gross Domestic Product can be measured by adding everyone’s earnings in a year or what everyone spent. This is known as the income approach and the expenditure approach. In 1942, Americas first Gross Domestic Product was published mainly for economic accountability. At the time, the United States was in the midst of the Great Depression. It was called Gross National Product,…show more content…
The unemployment rate was high in 2009 after the US Housing Bubble burst. Unemployment is measured by sampling reports of staff on an employer’s payroll. Another form of measure for unemployment is through phone survey in which households are asked whether they are looking for a job or working. This information helps the Bureau of Labor Statistics to complete the percentage of unemployment. In order to be labeled unemployed, one must be looking for a job, laid-off waiting to be recalled or out of work completely. The US government began documenting unemployment in the 1950s. The highest rate of unemployment was after the great depression and World War II. The reason why I place unemployment second on the list of five economic factors is because it’s an indicator of the overall satisfaction or dissatisfaction of the American people. Unemployment drives Gross Domestic Product and the economy because without employment there would be low consumer spending, which is a key growth drive in the economy. Unemployment forces the government to infuse money into the economy for unemployment benefits which could potential lead to a recession. Inflation It is the rate of increase in the general price of good and services in an economy over a period of time. Inflation reduces the purchasing power of currency because the higher the price of goods, the more money would be needed to purchase it. For example if I purchase an item for $2, and the same item sells for
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