United States Economy
The United States economy is in the expansionary phase of the business cycle and it has lasted there for approximately nine years since 2009. In order for the United States economy to grow the government has to get involved and creace certain policy in order to help the economy grow. The government should increase government their spending and decrease interest rates in order to increase money supply.
The United States economy is a country that has developed over the years. It is the world’s largest economy according to their nominal GDP and it has one of the world’s highest GDP per capita as well. United States Economy is measured with its unemployment rate, the rate of inflation / (CPI), the rate of real GDP growth, and the interest rate.
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The first face is expansion that is when all the growth happens in a positive way, with 2 percent rate which is the healthy amount. When the economy expands beyond 3 percent it creates an asset bubble. The second phase is the peak that’s when the expansion ends and the contraction begins. Then the third phase is contraction which is the same as a recession and inflation falls below the 2 percent. Finally the fourth phase is the trough which is when the contraction ends and the expansion begins. In 2017 the inflation rate was 2.1 percent and 2018 1.9 percent. The consumer price index (CPI) defines a customers’ standard of measurement for goods and services in a period of time. For the last month of April, it had a +0.2 percent in …show more content…
Right now the United States GDP is of 2.3 percent. GDP’s consumption only is around 60 or 70 percent of GDP which is its largest part in comparison to investment, government spending, or its net exports; and this year consumption alone in GDP increased by 1.1 percent. The consumers’ spending on durable goods fell 3.3 percent and nondurable goods rose 0.1 percent, while the spending on services increased by 2.1 percent, business investments increased by 7.3 percent, as well as exports that increased by 4.8 percent and finally imports that increased by 2.6 percent as well according to The Balance Economic Statistics.
The interest rate is an interest payment that the person who borrows money has to pay for lending it. Up till now the United States Government has a steady rate between 1.5 and 1.75 percent during the month of May in 2018 which has been inside the predictions that were made. In the United States from 1971 to 2018 the interest rate has averaged in around 5.72 percent during all these
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