Us Economy And How It Is Operating

The U .S . Economy - How it is operatingA BriefThe U .S . Economy is the largest and most effective thriftiness in the world with a Gross interior(prenominal) product close to 14 Trillion at the deuce-ace take in of 2007In a three year period starting greenback in 2004 , the U .S . frugality exhibited great resiliency by weathering critical events . The aftermath of the September 11 terrorist attacks led to major(ip) shifts in bailiwick resources to fight global terrorism . The pricy make out in Iraq led to a more high-priced U .S . occupation in Saddam Hussein s artless . bud operate , resources and human capital were huge investments in the struggle front . During the same period Hurricane Katrina caused extensive damage in the Gulf Coast . Again vital resources were sacrificed to aid victims and their families as tu mefy as affected areas . Soaring oil prices in 2005 and 2006 also threatened the economy specifically rising prices and the dispose of unemployed . This too tested the American economy to its limitsDespite these setbacks , the U .S . economy posted substantial product by the ternion quarter of 2007 showing that the world s mightiest economy is as fix as ever . Looking ahead , the economy be quiet faces long-term problems including inadequate investment in stinting al-Qaeda rapidly rising medical and pension cost of an ageing population , sizable trade and budget deficits , and doldrums of family income in the humbleer economic groupsProductivity (Gross Domestic ProductStarting in 2004 through the third quarter of 2007 , the U .S . Economy showed firm GDP harvesting - 2 .9 in 2004 , 3 .2 in 2005 and 2006 and a effusion to 4 .2 at the end of the third quarter of 2007 . settle to the Bureau of Economic Accounts , the increase in GDP to catch with reflected increase s in consumer spending , investment in equip! ment and software national goernment spending , and residential fixed investment . The death extend , in his State of the Economy address in January 2007 highlighted the strong and dynamic economy , and discussed the challenges faced in keeping the economy growing . The President stressed that the U .S . economy is refreshful and responsive , adding more than 7 .2 million jobs since August 2003 in spite of numerous challenges including a recession , corporate scandals , the 9 /11 attacks , and the worst natural disaster in American historyCPI and InflationThe Consumer determine Index is a measure of the average limiting over time in the prices paid by consumers for a commercialise basket of consumer goods and services . During the period 2004 to 2006 , CPI go at a manageable level - indicating fanfare is downstairs cut back . In 2004 - CPI rose 3 .3 over the antecedent year . In 2005 , the rate was at 3 .4 and in 2006 it slowed down to 2 .5 . The recent style of spl ashiness bodes well for the long term . As inflation remains low and stable it has minimal impact on economic decisions much(prenominal) as the ability of businesses to plan for the future . The absence of inflation pressures also means that the Federal Reserve would have...If you penury to get a full essay, order it on our website: OrderCustomPaper.com

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