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US Economic Performance - Essay Example

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This essay US Economic Performance talks that to keep up with the global challenges the nation is facing, the Bush administration has set national economic targets for the current year. This paper examines the economic performance of US in view of the abovementioned economic objectives. …
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US Economic Performance
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US Economic Performance

Download file to see previous pages... According to the report findings GDP growth is also boosted by business spending or investments. This could be ascribed favorable financial conditions and rising business confidence levels as well as growth in labor productivity. Economic growth is also fuelled by government spending. Similar to individual consumers, the government also has a high consumption propensity as opposed to saving tendency. Such economic condition may be favorable in the short run. It may also be disastrous in the long run since it may result to increased domestic and foreign borrowings.
This paper declares that economic growth is usually accompanied by rising inflation brought about by the increasing aggregate demand. Despite current economic expansion, CPI is maintained at reasonable levels in the US. However, an increase in CPI may be expected within the remainder of year due to the steady increase in the price of energy. Increase in price level is forecasted because of the projected escalation in production cost resulting from the cost of employee benefits and raw material. Generally, the US has performed fairly well and met its economic targets to date. The country has generated GDP growth for the first quarter of 2005. Albeit its unemployment rate is marginally higher than its target, improvements in the labor market are notable. The CPI is also within the normal range. Given these conditions, economic perspective for the short run could be described as promising. ...Download file to see next pagesRead More
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