Macroecon

In: Business and Management

Submitted By efrainmoreno18
Words 510
Pages 3
GDP
Efrain Moreno
Rasmussen College

Author’s Note
This written assignment is being submitted on April 22nd 2012 for Phillip Post G203/ECO2013 Section 08 Macroeconomics – Spring, 2012 at Rasmussen College.

The GDP numbers for the U.S. are as follows, real gross domestic product, the output of goods and services produced by labor and property located in the United States increased at an annual rate of 3.0 percent in the fourth quarter of 2011. The number that is associated with this is
15,094,025 millions in (PPP) or purchasing power parity. China is at 11,299,967 million in (PPP), India is at or around 4,457,784 million (PPP) and finally Turkey is at or around 1,073,565 million (PPP). As of April 2, 2012, the official debt of the United States government is $15.6 trillion ($15,620,325,998,404). U.S. Personal Consumption Expenditure from (1959-2010) has shown an increase ranging from just under 500 billion in the 1960’s to just over 9.2 billion in 2010 according to the U.S. Department of Commerce (2011). Consumer spending can damage the economy. If it drops off, economic growth will slow. Prices will drop, which creates deflation. If slow consumer spending continues, the economy can go into a recession, consumer spending drives 70% of the U.S. economy. Investment spending from all sources has risen in the past 40 years; capital investment is defined as spending on capital goods such as new machinery, buildings and technology so that the economy can produce more consumer goods in the future. Another example of investment spending would be extra investment in training and education to improve the skills and competences of workers, most economists agree that investment is vital to promoting long-run economic growth through improvements in productivity and a country’s productive capacity. The fact that changes in net exports have an effect on the economy's…...

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