Question

Based upon readings you have found, describe where the economy is currently operating relative to potential...

  1. Based upon readings you have found, describe where the economy is currently operating relative to potential GDP.

b.)Based upon readings you have found, describe where you believe the economy will be operating in the next six months to a year. Support your description with facts from your reading.

In this assignment you are not provided with reading materials. Rather, you are to locate your own resources. Search current periodicals and news reports. Be sure that you cite and reference the found resources in your answers to the discussion questions.

Homework Answers

Answer #1

According to the major economic indicators, like GDP, Unemployment rate and rate of inflation, the economy seems to be quite in a healthy condition.GDP Growth rate which is considered to be the most critical indicator is predicted to range between 2.7 - 3%, which is quite reasonable. As it measures the total amount of output of goods and services, so it is a healthy indication for the economic condition of US economy.

The unemployment rate would be 3.7% in 2019 which also indicates that there are enough job opportunities available and thus rate of unemployment is low.

Moreover, inflation is also under control as 1.8% in 2019. Thus all the economic indicators indicate a healthy condition of the economy.

References

US economic outlook for 2019 and beyond Available at : https://www.thebalance.com/us-economic-outlook-3305669

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