The Growth Rate Of The Gdp

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The GDP growth rate per year is derived from the reported GDP (in dollars $), therefore, the GDP ($) for 2004 and 2014 is needed in order to get a single summary growth rate for all 10 years (2004-2014). According to World Bank, the U.S. GDP for 2014 was $17,419,000,000,000.00 and the GDP for 2004 was $12,274,928,000,000.00. As a result, we get an annual GDP growth rate of 3.56% over the 10 years (2004-2014). The inflation rate informs us about the purchasing power of our currency; in other words, the higher it is, the weaker our currency becomes and the worse our economy becomes. However, at a moderate amount, it can actually stimulate the economy. In this case, the inflation rate is based on the consumer price index, which means we need the ending price index for 2014 and the beginning price index for 2004 in order to find the inflation rate over the 10-year period. As reported by World Bank, the consumer price index for 2014 was 108.6 and the consumer price index for 2004 was 86.6. Thus, the inflation rate over the past 10 years is 2.3%. This means we are a little over the Federal Reserve’s goal of 2.0% inflation, but with the right actions, the Federal Reserve could soon reach their goal. The unemployment rate is a good indicator of the percentage of people in the labor force are currently attempting to find work. However, the rate does not take into account individuals that aren’t showing interest in finding work or that aren’t in the process of securing a job. In
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