Is the U.S. Economy Healthy?

4 April 2015
This paper is an analysis of the health of the current American economy.

This paper examines several components of the U.S. economy from 2000-2002 in order to gage whether or not it is healthy. The economy’s health prior to 2001 is discussed in detail in order to give the reader a good basis for understanding why certain materials are included in this paper. The author looks at GDP, the unemployment rate and inflation in order to examine their affect on the current economy. Any new monetary and fiscal policies that have been introduced to help deal with problems arising are then presented and analyzed in order to judge their efficiency.
According to Encarta Gross Domestic Product is defined as total value of goods and services produced in a country over any given period of time. GDP is calculated in one of three ways: (1) by adding up the value of all goods and services produced, (2) by adding up the expenses on goods and services at there sold, or (3) by adding up manufacturer’ earnings from the sale of services or goods. This variable is important when examining the health of the economy because it measures the country’s standard of living. If GDP increases at a higher rate than the population, standards of living are rising. If the population is increasing at a greater rate than GDP, living standards are falling. (Encarta) The following table shows U.S. GDP over the last 18 months: Starting with the fourth quarter of 2000 ending with the fourth quarter of 2001.

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