The Gross Domestic Product ( Gdp )

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The Gross domestic Product (GDP) as per the definition found in research refers to the total market value of the total goods and services produced in the economy of The United States of America which are produced and serviced in a given financial year which may be produced in the boundaries of the nation. When transforming the GDP to real gross domestic product (RGDP), we adjust for the price changes, which may also be referred to as Inflationary pressures. This is because inflation or its opposite deflation is pegged to the 2009 US dollar value. The Annual percentage change of Real GDP starting from 2014 shows a sine wave trend, with years coming after 2015-2019 showing a fall in the annual real GDP which may be seen with a grain of salt…show more content…
As gains from incomes and jobs are realized the demand for all the items listed above is likely to increase making the economy stronger. (Payne) (See Exhibit 3-4). As per historical data of the US from 1990-2014 (See Exhibit 5) the deceleration of the Real GDP in 2011 is mainly because of the downturns in Fed spending and private inventory investment. Also this is because of a deceleration in exports which were balanced partly by the deceleration in the imports of goods and services and acceleration in the fixed investment, mainly non-residential. (Statistica) Based on the above data gathered from multiple credible sources we suggest that the percentage changes in real GDP will increase in the coming four five years. The value which we predict that the variable will take is about or in between the value of 2-3%.This value is based on the factors which have been mentioned before. The trends which these factors will take will in reality lead to the true value but based on the previous forecasts and historical data it can be safely assumed that the value we have suggested will be nearer to the true value with a small amount of random error involved in the value. Also the value will only fluctuate drastically from the true value if any unforeseeable or uncontrolled factors like natural disasters, multinational bankruptcy or war takes place with in the nation or between two nations. The annual percentage
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