Us Economy And How It Is Operating

The U .S . Economy - How it is operatingA BriefThe U .S . Economy is the largest and most efficacious thriftiness in the world with a Gross interior(prenominal) Product close to 14 Trillion at the deuce-ace quarter of 2007In a three year period starting line in 2004 , the U .S . economy exhibited great resiliency by weathering critical events . The aftermath of the September 11 terrorist attacks led to major(ip) shifts in national resources to fight global terrorism . The pricy struggle 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 war 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 tumefy as affected areas . Soaring oil prices in 2005 and 2006 also threatened the economy specifically rising prices and the lean of unemployed . This too tested the American economy to its limitsDespite these setbacks , the U .S . economy posted substantial product by the tierce quarter of 2007 showing that the world s mightiest economy is as fixed as ever . Looking ahead , the economy be quiet faces long-term problems including inadequate investment in economic al-Qaeda rapidly rising medical and pension costs of an ageing population , sizable trade and budget deficits , and stagnation of family income in the humbleer economic groupsProductivity (Gross Domestic ProductStarting in 2004 through the trio quarter of 2007 , the U .S . Economy showed strong GDP growth - 2 .9 in 2004 , 3 .2 in 2005 and 2006 and a outpouring to 4 .2 at the end of the third quarter of 2007 . harmonise to the Bureau of Economic Accounts , the increase in GDP to begin with reflected increases in consumer spending , investment in equipment and software national goernment spending , and residential fixed investment .

The death chair , 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 brisk 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 change over time in the prices paid by consumers for a commercialise basket of consumer goods and services . During the period 2004 to 2006 , CPI rose at a manageable level - indicating fanfare is under 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 behavior of inflation 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 want to get a full essay, order it on our website: Orderessay

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