Take Home Examination : Macroeconomics By Alex Prindle

In view of the weak economy of the last several years, explain which of the four components of GDP had, or is having, the greatest positive impact in our economy. Use your results from the second e-Activity to support your response.

Since more apartments are being built, there is a greater demand for the machinery used to produce them that will cause investments to increase. Since more people are looking to buy new apartments, residential investments will increase and will also lead to an increase in investments. In the category of government purchases, there would not be any dramatic changes according to the two articles because there is no mention that the government will dramatically change any of its spending habits. Net exports include exports and imports of the United States. This category of GDP will increase as well as more goods and services from the United States and foreign countries are demanded in order for constructors to keep up with the increasing demand for apartments. As a result of the increase in consumption, investments and net exports, the total GDP in the next year should increase. This will cause an increase in real GDP because the prices of the base year will remain the same as there is an expected increase in quantity of apartments in the next year. This will also cause an increase in nominal GDP because there will be an increase in prices of the apartments in the next year as the quantity and demand for

d) The economy will spend too much time cutting and loses the ability to produce enough pie for everyone.

1. The richer you are, the more you have benefited from economic changes over the past 30 years.

a. What would shoppers see when they shopped in Wal-Mart and the other “big box” stores that sell so many imported items?

Identify economic factors that affect the real GDP, the unemployment rate, the inflation rate, and a key interest rate. How do you predict the economy will perform in the next two years given the current state of two of the economic factors you identified? How might your organization be affected by these changes?

The increase largely showed a positive contribution from personal consumption expenditures (PCE), nonresidential fixed investment, residential fixed investment, private inventory investment, state and local government spending, and exports. Current-dollar GDP increased 3.4 percent, or $589.8 billion, in 2015 to a level of $17,937.8 billion, compared with an increase of 4.1 percent, or $684.9 billion, in 2014. Real disposable personal income rose 3.4 percent over the past four quarters, a rapid pace. At the same time, real consumer spending rose only 2.6 percent. This difference indicates that consumers have tended to save a rising fraction of their income gains over the past year.

When we think about GDP, it is important to determine the country’s output. When I say the country’s total output I mean everything produced by the people of the country, as well as all the companies within the country. Today I will be discussing to you all the recent history and expected future conditions of the American economy.

My prediction is that GDP will increase steadily in the future. According to econedlink.org, a nation’s maximum or potential GDP or its potential output is the highest level of output that can be maintained over the long term, given any constraints on the nation’s productive resources. And a limit supply of labor, natural resource, service and capital will result in the limit of potential output, which means, the limit of GDP (2015, econedlink). Besides, according to our textbook, the determinants of economic growth to which we can attribute changes in growth rates include four supply factors: changes in the quantity and quality of natural resources, changes in the quantity and quality of human resources, changes in the stock of capital goods, and improvements in technology (2015, McConnell)

The informative novel by Naroff and Scherer, “Big Picture Economics”, explains economics to the general public with personable events that unseeingly relate to the context of the new global economy. The authors discuss hot topic economical issues in a way that allows uniformed persons to learn how many events in the world, small or large, can essentially relate to the economy. An important economical issue that is discussed in multiple chapters throughout the novel is tax reform. Tax cutting is a complex topic that is often simplified by politicians attempting to expand their polls, however there is a much greater thought process when it comes to tax reform that has to be considered for a successful economic expansion.

The current rate of GDP growth, according to the Bureau of Economic Analysis, is 2.7% (for Q3), and it was 1.3% in Q2 of this year. This rate reflects relatively slow growth, with challenges remaining in the domestic market and with sluggishness in Europe suppressing exports to that region. The rate of GDP growth is predicted to slow to a decline of 0.5% between Q4 2012 and Q4 2013, the US re-entering recession, according to the Congressional Budget Office's projections. These projections are based on the provisions of the Budget Control Act being enacted, though any observers are doubtful that this will occur.

The future of the economy is still going strong but one has not seen the great strides in advancement, as was the case from 1983 to 1993(economy). "Per capita personal income for the Nation is projected to increase 1.2 percent per year in 1993-2005, compared with a 1.4 percent increase per year in 1983-93. The growth rate slows as a result of the relationship between personal

GDP and the economy: Third estimates for the first quarter of 2013. Survey of Current Business. July 2013; 93 (7), 1 Retrieved from http://proxy.cecybrary.com/login?url=http://ehis.ebscohost.com/eds/detail?vid=3&sid=5a4d1607-26d1-4702-aa4e-2813451791d0%40sessionmgr4&hid=17&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=f5h&AN=89992363.

What is the impact on GDP if consumer spending increases? Would the answer be different if the consumer spending was directed toward foreign goods?

Based on the data that I have researched, I predict that for the duration of this year, the GDP will most likely increase, but not dramatically. According to Bloomberg’s business website, “The world’s largest economy is likely to skirt the worst damage from the so-called fiscal cliff, the more than $600 billion of federal spending cuts and tax increases that will automatically take effect at the start of next year unless Congress acts” (2012, Bloomberg.com). I got to this conclusion due to the fact that throughout last year, consumers and companies put a restraint on their spending. It did not hurt so much, but did not help as much when it comes to growth in the GDP.