ECONOMY GDP Paper

Topics: Unemployment, Macroeconomics, Recession Pages: 6 (1259 words) Published: February 3, 2015
Cristina Dickens Oko
ECON 2302.
Research Paper (GDP)

In each year, the Government is expecting to improve the country's economy. With the help of gross domestic product (GDP) has reached a high value of all goods and services produced in a given time. This spring, the Economy grew slower than the previous expectations. All the unexpected movement that has been processed through the country's economy creates that fear of falling into another recession. The initial rate was 1.3 percent for the months of April to June and the economy expanded only 0.7 percent in the first six months. Yet they still expect a better growth of the economy for the second half of year will also help to avoid falling into the dreaded recession, but not enough to predict the rate of employment. Consumer spending represents 70 percent growth. The profits of the companies had remained stable and even increased by 1.0 percent. Some reports speak badly about the state economy by giving some suggestions a bit extreme. However, other reports offer a more optimistic picture in a new report with more recent data than the first and hopefully raise the growth of the economy in the country. As already mentioned above, the GDP (Gross Domestic Product) is the value of all final good and services produced during a given year. We can also consider it as standard of living. Is the result of Consumer Spending, Government spending, gross investment, exports and minus the Imports. Based on the article on which I am writing, the expectations of the government were not the same as those predicted, as is fea red to reach an economic recession. When the gains that have been made to improve economic expectations do not cover in order to reduce the annual percentage rate, cause other problems on the business cycle, for example, a large percentage of unemployment. That only happens when the economic system is too low or in a state of recession. Naturally the lack of jobs affects the growth of the country, so this situation decreases when the system is going on in the recovery process. (Picture I) Page 6 Economists are people assigned to give reports of the current situation, suggest solutions, making statistical comparisons between one year to another in order to improve the economic status of the country. Many economists believe the economy is at a critical moment, on the other hand, is expected to improve later this year. Consumer spending accounts for about two thirds of all spending in the economy. If the level of consumer spending is high, the economy will experience high levels of production and employment, so there will be a boom in the economy. On the other hand, if the level of consumer spending declines, the level of output and employment will decrease and therefore the economy will stagnate. For example, say that in a large company like Walt-mart, which handles a large number of employees, failed to dispatch a number of products estimated for a given time. For lack of customers, will undergo a kind of economic downturn which will have to slowdown of all products that have not been consumed, perhaps because of the expiry dates etc. Another reason could be to improve the products. The case here is that if there’s not been a good sale year, there will not be good earnings too and consequently, big lost when doing the budget for employee payroll. Will have to reduce the number of employees which caused an unemployment rate. As we can see in the article referring to the consumer spending. “Consumer spending was revised up to a 0.4 percent gain, slightly better than the first estimate of 0.1 percent. Still, that is the weakest growth since the final three months of 2009.” Government sector is a key part of the economy, the nature of public sector institutional arrangements varies according to specific the state's role is to be primarily engaged in national security, internal security, justice and services that provide assistance in the...
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