macroeconomics - Essay Example

Only on StudentShare

Extract of sample

In 2012, the performance for 2nd quarter was almost 50% lower than that of the first quarter.
It appears that the most significant growth takes place in the 4th quarter. That happened in 2009 and 2011, but certainly not in 2012. In 2010, the growth rates were somewhat evenly distributed in each of the four quarters.
Because of the recent thrust of the Federal Reserve to provide stimulus funds for the attainment of the ideal of full employment, 2013 should have a much higher growth rate and lower unemployment rate. On a per quarter basis, there is a 50% probability that the growth rate in the 2nd quarter will be higher than the first quarter. Since the 2nd quarter was lowest in 2009 and 2010, lower than the first quarter in 2012, but higher in 2011 than the first quarter, the probability of having a lower GDP growth rate is 75%. The 3rd quarter will be higher than the 2nd quarter and most probably higher than the 1st quarter since this is what happened in the past four years. By the 4th quarter, assuming no major calamities will disturb business operations, USA real GDP should experience the highest growth rate so far since the time of the recession.
First, it is because the Fed has been supportive of the need for more money supply. There is a determination to bring down the unemployment rate in the USA. The People have been complaining about the high unemployment rates and performance of the Monetary Board in easing the financial difficulties of the country for several years now. Secondly, the government is more prepared to adjust to unfavorable climate changes. And thirdly, there has been news about improvements in the way the economic problems in Europe are being handled, e.g. the way Greece economic crisis is being resolved. Europe is a major trading partner of the ...
Download paper


As of May 30, 2013 release highlights of BEA, the real GDP grew at the rate of 2.4% in the 1st quarter of this year, which was better than the first quarters of 2010, 2011, and 2012. See Figure 1 in the Appendix Section. In terms of quarterly trend, the data in 2011 and 2012…
Author : lindsay05

Related Essays

The nternational economic forces
This essay discusses that in European countries global economic factors and international economic conditions have been creating significant impacts on their various economic conditions. After the World War II economic conditions of these countries have been changing to great extent and these economic conditions are increasingly becoming dependent on international economic as well as financial factors. Governments and economic policymakers of these countries have been trying to implement various economic policies, including both fiscal and monetary policies aimed at reducing the level of...
9 pages (2259 words) Assignment
In order to justify the arguments mentioned in the article, the author has used different economic theories. Equilibrium Theory of Economics: The author of the article implicitly described that the political leaders believe that the equilibrium in the economy will be achieved with the help of tax cut strategy. The assumption that lies behind the strategy of tax cut was that by reducing the taxes the economy will grow further and the economy may be able to achieve equilibrium position. First of all, it is important to develop cognizant regarding the equilibrium theory. Equilibrium theory of...
10 pages (2510 words) Essay
The Issue of Unemployment, That Exists in The Labor Market in The United States
This paper is one of the best examples of analysis of the current trends in the American labor market with regard to the unemployment issue. The factors, that prevent significant number of people from getting a job are considered
4 pages (1004 words) Case Study
Unemployment in Macroeconomic Theory
The intention of this study is to provide comprehensive theoretic analysis of the issue of unemployment and also determines the ways of addressing this problem, in order to achieve high levels of economic development. There are many effects that are caused by unemployment, which can either be direct or indirect.
6 pages (1506 words) Essay
Both are equally bad for the national economy. Current GDP, Inflation and Unemployment Rate The US GDP in year 2012 is estimated at 15.68 trillion. Real GDP in the US increased by 3.6 percent annually in the third quarter of 2013 over second quarter and the inflation rate is estimated at 1 percent in the month of October, 2013 that is lowest since October 2009. Similarly, unemployment rate is estimated at 7 percent in November 2013 down from 7.3 registered in the previous month (US Inflation Rate). Unemployment Rate in Past 10 years The following graph taken from the Bureau of Labor Statistics...
4 pages (1004 words) Essay
Conversely, a major concern with the growth is whether it is sustainable which brings into focus two important factors. This includes the emerging countries ability to maintain a stable growth, and whether the global economy can sustain the growth evident in emerging countries. It is important to note that while emerging countries can maintain their stable growth, this growth cannot be accommodated by the global economy. As a result of emerging countries still undertaking the process of catching up in terms of growth, these countries still need to engage in a continuous and a challenging...
3 pages (753 words) Assignment
Upon shifting the curve W, the new equilibrium point will likely be at R. This is an indication of injection of income into the market cycle by either the households or the government through various spending activities.
1 pages (251 words) Coursework
Got a tricky question? Receive an answer from students like you! Try us!