25, November 2013
Current Economic State of the United States There are several economic indicators that are used to determine and define the state of the economic conditions. Some of those indicators include the unemployment rate, number of jobs available, GDP growth rates, inflation rates and more. Data related to the current economic state is generally released weekly or monthly, and sometimes quarterly. There are economic indicators that are watched closer than others such as the unemployment rate and GDP growth rate. These indicators help make an assessment of economic situations and help monitor the potential changes that can occur. In reference to the business cycle, the United States is considered to be in the “expansion” cycle. Expansion is defined as being the phase of the business cycle when the economy moves from a trough to a peak. It is a period when business activity flows and gross domestic product increases until it reaches a peak. The economic expansion is expected to remain, according to data reflected by the business cycle. While the speed of recovery may not be remarkable, all of the measures of cumulative economic activity, including, gross domestic product, sales, employment, and industrial production continue to increase. According to the bureau of economist analysis the current state of our gross domestic product has increased annually to 2.8%. Real gross domestic product is measured by the output of goods and services produced by labor and property located in the United States. The increase in GDP shows positive contributions from personal consumptions, private inverters, exports, fixed investment, and local government spending. The factors listed above can be offset by negative influences from the federal government. These offsets can include things such as spending and imports. GDP is seasonally adjusted and varies due to climate conditions, holidays, and the intensity of production. The U.S. Bureau of Labor Statistics uses the term “Labor Force” describe the division of Americans who have jobs or are actively seeking a job. Participants in the labor force are at least 16 years old. Participants are not serving in the military and are not institutionalized. To put it into easier terms, the labor force includes all Americans who are suitable to work in the everyday economy.