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Economics College - Essay Example

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Economics College

This event has crippled the economy, leading to a quarterly decline of 1.4% in the third quarter. The attack has "shut down the economy for several days and has had a lasting impact on tourism, the airline industry, and other businesses" (Economists Call it Recession 2001). In an annual basis, the US economy only managed to grow by 0.8% during 2001.
The economy has entered a moderate state of recovery during 2002 where it posted 1.6% annual GDP growth. Recognizing the slowdown in the economy, the Bush administration planned to stimulate consumer spending and investment through the use of tax cuts. This fiscal policy was implemented in July 2003, taking immediate effect in the next quarter. The US has enjoyed an annual growth rate of 2.5% during that year which is strongly fueled by the rise in personal consumption expenditures coupled by a higher level of government spending. Also, the tax cut has been effective in creating jobs and boosting business growth.
From 2004, the US economy has been posting growth at par with its pre-recession rates. GDP in 2004 rose by 3.9%, which 0.2% higher than the 2000 level. Annual growth rates in 2005 and 2006 are 3.2% and 3.4%, respectively. ...Show more

Summary

4. Review the GDP information for the past few years from the Bureau of Economic Analysis's Website. Provide a brief summary of the GDP trends over that timeframe and discuss two or three events which may have caused these trends.
This paper looks at the GDP growth in the United States from 2000-2006…
Author : denesikrashawn
Economics College Essay essay example
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