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The United States Economy: 1990s, Present, And Future

1554 Words7 Pages

The United States Economy: 1990s, Present, & Future
By: Cassandra Petrunyak
BridgeValley Community & Technical College
30 April 2018

Macroeconomics refers to the branch of economics that deals with the study of the behavior of aggregate economy. In macroeconomics, a number of economy-wide occurrences are discussed. Macroeconomic performance is usually measured using three important factors: the inflation rate, the rate of unemployment, and the growth rate of output and income. We shall analyze how macroeconomic variables behaved in the United States from the mid-1990s until 2002, then we will assess the current economic status of the country. Last, a projection will be illustrated by highlighting the goals that should be set by the government …show more content…

Despite these challenges, the U.S economy remains one of the largest and most significant economies in the world. This is because it represents around 20% of the total worldwide output. The Internal Monetary Fund ranks the United States sixth in highest GDP. The U.S economy expanded at a rate of 2.3% in the first quarter of 2018. This year the increase in GDP has beaten market expectations of 2%. The increase in GDP is an indication of positive input from nonresidential fixed investment, exports, federal government spending and private inventory investment. The average growth of GDP from 1947 to 2018 is 3.21% (Frank, …show more content…

In 2018, the inflation rate in U.S increased to 2.4 % from 2.2% matching the market expectations (Ramey & Zubairy, 2018). One of the causes of increase in inflation rate in U.S is over-expansion of the money supply. The increase in money supply in form of credit, loans and mortgages has led to decline in the value of the U.S. Dollar. Growth in economy has resulted in an increase in employment, leaving many people with income to spend. The government projects that a higher circulation of money causes a higher rate of inflation, which can negatively impact the economy. The general input and output of domestic companies has increased due to cuts in regulations, increased labor, and innovation. The country is now producing more product than ever before, which in turn generates a higher income. The U.S economy is currently stable compared to 2009. (Outlook,

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