The U.S. Economy

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The U.S. economy is the largest GDP in the world’s economy. When describing the state of the U.S. economy, reports often refer to the National GDP, its unemployment and the CPI. 

National GDP 

Gross Domestic Product (GDP) is the total market value or monetary of all the manufactured services and goods within the boundaries of the U.S in a specific period. Its significance is that it gives information on the general health performance of the economy and its size. Often it is also used to evaluate the growth in the marketplace. Currently, the first quarter of U.S. national GDP 2019 stands at $197.6 billion into a level of $21.06 trillion according to the Bureau of Economic Analysis. The figure indicates a 2.0 percent growth for the last decade. 

Unemployment Rate

The unemployment rate is defined as the percentage rate of jobless workforces in the total labour force. They are the people that are able and willing to work, but despite these, they are currently not at work. It is a significant indicator that the Federal Reserve uses to evaluate economy health while formulating the monetary policy. According to the BLS data, the average Unemployed rate as of August 2019 is 3.7 percent. However, over the last decade, the price of unemployment has decreased by 19 thousand to 6.0 million an average of 5.74 percent decrease.

The CPI

The consumer price index (CPI) is an examination of the average price of a basket of user services and goods such as food, transportation and medical care. It is significant in that it acts as the primary indicator of inflationary change. Therefore, CPI is determined by dividing the price of a basket of goods with the same basket in the base year to get the inflation rate. The current U.S. CPI rate stands at 1.6 percent for 12 months ended June. For the last decade, the U.S. CPI has decreased rapidly, moving from 3.84 percent in 2009 to the current rate of 1.6 percent. 

To conclude, The U.S. GDP has grown over the past decade, which has seen a decrease in unemployment rate although the rate is still high. The inflation rate or the CPI has also decreased while the economy has grown. 

Citations

"Mcgraw-Hill Connect". Connect.Mheducation.Com, 2019, https://connect.mheducation.com/connect/hmStudentSectionHomePortal.do?sectionId=115167316#/assignment-null.

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