Discussion
What are the annual growth rates for the U.S. economy over the last 5 – 10 years?
2003/2.5%, 2004/3.5%, 2005/3.1%, 2006/2.7%, 2007/1.9%, 2008/-0.3%, 2009/-3.1%, 2010/2.4%, 2011/1.8%, 2012/2.2%
Has GDP been growing or declining over this time-frame?
You can see that over the years the growth rate can grow or decline. There was a decline from 2007 to 2009 compared to previous years but I came back up in 2010. In my opinion it looks that the growth rates pretty much stays between a certain percentages with the exception of the three years we showed decline. So I would say according to the number the GDP hasn’t been growing or declining. It just seems like it is holding steady. Explain what factors might have caused GDP to increase or decrease over this time-frame.
There are six determinants of growth grouped into supply, demand and efficiency factors. Supply factors are increases in the quantity and quality of both natural and human resources, increases in supply of capital goods and improvements in technology. Those supply factors can also be decreases which would cause a decline. The demand factor is to achieve the higher production potential created by the supply factors. Households, businesses and government need to purchase the output of goods and services. The efficiency factor is to reach its full production potential. Economy needs to achieve economic efficiency and full employment.
Next, what are the quarterly growth rates (annualized) for the U.S. economy for the last six quarters?
2011/3Q/1.3%
2011/4Q/4.1%
2012/1Q/2.0%
2012/2Q/1.3%
2012/3Q/3.1%
2012/4Q/0.4% What trends do you notice in these numbers?
I see that in the beginning of the year in the first quarter or so the percentage is low and gets higher later in the 3rd quarter with a small drop in the 4th quarter except for 2012 4th quarter. 2. GDP and Economic Well-being
Is GDP a good measure of economic well-being? Why, why not? What are its limitations? What are some
2003/2.5%, 2004/3.5%, 2005/3.1%, 2006/2.7%, 2007/1.9%, 2008/-0.3%, 2009/-3.1%, 2010/2.4%, 2011/1.8%, 2012/2.2%
Has GDP been growing or declining over this time-frame?
You can see that over the years the growth rate can grow or decline. There was a decline from 2007 to 2009 compared to previous years but I came back up in 2010. In my opinion it looks that the growth rates pretty much stays between a certain percentages with the exception of the three years we showed decline. So I would say according to the number the GDP hasn’t been growing or declining. It just seems like it is holding steady. Explain what factors might have caused GDP to increase or decrease over this time-frame.
There are six determinants of growth grouped into supply, demand and efficiency factors. Supply factors are increases in the quantity and quality of both natural and human resources, increases in supply of capital goods and improvements in technology. Those supply factors can also be decreases which would cause a decline. The demand factor is to achieve the higher production potential created by the supply factors. Households, businesses and government need to purchase the output of goods and services. The efficiency factor is to reach its full production potential. Economy needs to achieve economic efficiency and full employment.
Next, what are the quarterly growth rates (annualized) for the U.S. economy for the last six quarters?
2011/3Q/1.3%
2011/4Q/4.1%
2012/1Q/2.0%
2012/2Q/1.3%
2012/3Q/3.1%
2012/4Q/0.4% What trends do you notice in these numbers?
I see that in the beginning of the year in the first quarter or so the percentage is low and gets higher later in the 3rd quarter with a small drop in the 4th quarter except for 2012 4th quarter. 2. GDP and Economic Well-being
Is GDP a good measure of economic well-being? Why, why not? What are its limitations? What are some