Question

How has the U.S. economy been doing in recent years? Why do you think that is? Gather relevant economic statistics, such as the growth rate of real GDP, the unemployment rate, and the inflation rate, to support your case.

Answer 1

An particularly important indicator is the manufacturing jobs. According to the National Association of Manufacturers, the 12.75 million Americans who work in manufacturing earn an average of $84,832 a year, including benefits. When producers start laying them off, that means the economy is going into a recession. For example, as compared to the prior year, manufacturers hired fewer workers beginning in October 2006.

The economy is calculated by domestic gross product. That is the dollar value of all of the last year's output. GDP growth is the most important indicator which compares this quarter to the last. If the economy is stable, growth in GDP would range from 2-3%. If it is above 3%, then it may overheat. It's in danger of contraction when it's below 2 percent. If it is below zero it will be in a recession.

Inflation tracks price hikes. The current inflation rate is 0.1 per cent in January as calculated by the Consumer Price Index. The Federal Reserve controls the core inflation rate, leaving out unpredictable prices of food and gas. It also prefers inflation rate year-over-year, as it reduces the effect of seasonal variations.

Durable goods are machinery, supplies, and raw materials used by companies in their businesses. Speak of shovels, tanks, and aircraft with oil. Commercial aircraft are, in fact, the main portion of durable goods. The equipment must last at least three years for it to be considered a durable good. They are expensive, so companies are putting off buying them until they really need them. Interest rates regulate how expensive it is for businesses as well as customers to borrow. You can borrow cheaper while interest rates are low, and buy a bigger house, a nicer car, and more furniture. Operations must borrow more to grow their operations, purchase equipment and hire more employees.

Right now, economic growth is decent, but once you dig below the surface, things look a little bit more fragile,