The paper 'GDP Dynamics in the United States of America' is a great example of a research paper on macro and microeconomics.
The research paper below analyzes the dynamics of GDP, savings, investments, real interest rates, and unemployment in the United States of America for the recent five years. Second of all, these dynamics are compared to the existing forecasts for the upcoming five years. According to the provided analysis and forecasts, strategic recommendations on how the government can influence the situation are provided.
Economic Outlook Forecast
Analysis of the dynamics of the main macroeconomic indicators of the United States of America is conducted in the research paper for the purpose of identifying the key drivers of a national economy. It is done in order to provide forecasts about the future development of the economy. These forecasts can be used by a local government to adjust and modify its policy to reach certain economic and social conditions.
Dynamics of the U.S. GDP
First of all, it is important to analyze the main macroeconomic indicator of any country – gross domestic product (GDP). The data is retrieved from the World Bank’s databases. The period for analysis is 2011-2015. GDP growth rate (%) is chosen as an indicator. The dynamics of the country’s GDP for the last five years are provided in Table 1 below.
Source: The World Bank Data
These dynamics can be presented in a graphic form. Graphic description of the GDP dynamics is provided on Chart 1 below.
As can be seen from the graph and table, the GDP growth rate has been stable for the last five years. It has been around 2%. Thus, the country’s national economy has recovered from the global financial crisis of 2008, and it is demonstrating stable economic growth. It has become possible mainly because of the government’s reasonable economic policy of stimulation of a national economy. However, the pace of this growth is not enough to guarantee the execution of the main social functions of the country. Probably, one of the main goals of the government’s economic policy is a high level of employment. That is why the unemployment rate in the country should be the following indicator considered to define whether the existing GDP growth rate is enough.
Dynamics of the U.S. Unemployment Rate
The dynamics of the country’s unemployment rate for the analyzed five years are provided in Table 2 below.
Source: The World Bank Data
As can be seen from the table, the unemployment rate has been demonstrating the constant trend to decline in the recent five years. Therefore, two main conclusions can be made. On the one hand, the current pace of GDP growth is enough to guarantee a stable low degree of unemployment. On the other hand, the current macroeconomic policy of the government is effective in the provision of the positive socially economic environment. This economic policy is realized in two ways. On the one hand, it is possible to talk about stimulative monetary policy via the policy of cheap money. The government has been trying to decrease the real interest rates in order to provide cheap credits for the businesses. Stimulative fiscal policy has been targeted on lowering the taxes in order to stimulate people’s savings and expenditures. These savings and expenditures must have been finally realized in the growing GDP. That is why the following step will be to analyze the dynamics of the real interest rates, savings, and investments in the United States of America.
The real interest rate
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