Identify the U.S. GDP results and trends for the most recent three-year period, indicating the key factors impacting the increase or decrease in GDP. Provide support for your rationale.
•Recommend a strategy for improving the U.S. GDP over the next five years. Provide support for your recommendation.
•The Federal Reserve Board has kept the federal rate to a nominal rate in recent years. Explain the rationale for this behavior, indicating the effectiveness on financial markets.
•Predict the federal fund rate over the next five years, indicating the likely impact on financial markets. Provide support for your rationale.
GDP results and trends for the most recent three year period is that during the last three years the GDP has shown a positive growth rate. This growth rate has varied from 0.1% to 4.1%. The growth rate was 0.1% during the second quarter of 2011 and was 4.1% during the first quarter of 2012. Currently, there is acceleration in real GDP. These increases are being attributed to an increase in private inventory, investment, an increase in personal consumption, upturn in exports, and a smaller decrease in federal government spending. The increases in product sales that have led to the growth in GDP are motor vehicle sales and computers. Over the period of past three years the growth in the GDP has been supported by increases in real exports, and increase in real personnel consumption expenditures. The present targeted GDP growth rate is between 2 and 3 percent. This GDP growth rate will provide jobs but will not lead to excessive inflation. Currently, the economy is recovering with an increase in the number of jobs being added, a high retail sales number, and manufacturing industry beginning to respond to higher ...
This posting gives you a step-by-step explanation of US Economic Trends. The response also contains the sources used.