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According to the US Bureau of Economic Analysis that is tasked with the duty of breaking down the worth earned by the goods and services, the rise in real GDP can partly be attributed to the fact that Federal Government spending reduced. The decline in the residential fixed investment together with reduction in spending in both the state and the local governments is another reason the positive trend in real GDP was registered.
According to input from the US Bureau of Economic Analysis, the third quarter experienced the most significant growth, translating to a whopping 4.1%. On the other hand, the fourth quarter seemed to have experienced the least form of growth, which translated to 2.4% (Mataloni).
With my prediction for real GDP this year being 3.1%, I presume true the idea that the future is uncertain for US economy at large. I say so because this year is likely to witness increased output, which translates to rise in both imports and exports. When the output is increased, business shall no doubt spur, and this shall prompt most of the employers to bring on board additional employees. The hiring of more employees will mean that the rate of unemployment shall decline. In like manner, the participation of labor too is likely to increase following increased output.
Another reason real GDP is likely to increase this year is the fact that the personal consumption expenditure is also likely to increase precisely by two cents, and this shall translate to reduced inflation. The unexpected move by the Federal Reserve Bank to keep the short-term interests is also likely to prove beneficial in the end as it will contribute to positive trends in real GDP. In the course of this year, I also expect the Federal Government to cut costs thereby lowering its spending further (Avakov 43). Just as they did last year, the state and local governments alike are also expected to cut their costs hence lowering their budgets further.
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It can be regarded as the size of the economy. More often than not, GDP is usually expressed as a comparison of the earlier quarters or year. For example, if he year to year GDP is up to 4 % this is then perceived to mean that the economy grew by 4% over the last year.
The fiscal crises of 2007-2008 provide the prospect to re-evaluate our considerations for prevention of crises in the future. All monetary crises are at core bank flows, since bank debt of any kind is vulnerable to abrupt exit by bank arrears holders. The crisis raises concerns for crisis hypothesis.
Over the last few years, although there are quarterly fluctuations, there is a general downward GDP trend. Looking at annual real GDP, one can see a downward trend from 2.7% in 2006 to a slightly lower 2.1% in 2007 to the almost flat growth of .4% in 2008.
Calculating development in terms of per capita GDP leads to a distorted view of the developmental status of nations and their populations. As a case in point, one may refer to the fact that according to this statistical measure, Qatar, Kuwait and the United Arab Emirates rank as the second, fourth and fifth most developed nations in the world, and Equatorial Guinea as the ninth (IMF, 2008).
This in turn leads to spurt in volume of production of goods and services at all levels to cope which firms need funds for working capital and capital expenditures. However there has been always this controversy of whether a company can borrow at all instead of sourcing the required funds through equity capital.
According to the report the way income is distributed in the economy is a measure that can be used to gauge the quality of life, because that shows how many people receive what percentage of the income that is being generated within the economy and how many people receive an income that is below the average.
The country with the highest GDP is Saudi Arabia with $587 billion. As compared to the countries of Arab League the GDP of Italy is $2.164 trillion, the GDP of France is $2.734 trillion, GDP of Germany is $3.55 trillion, GDP of United States $14.83 trillion, and GDP of Japan is $5.773 trillion for the year 2011 (CIA Fact book, 2013).