Top-Rated Free Essay
Preview

Fp120 Current Economic State

Good Essays
486 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Fp120 Current Economic State
Current Economic State
What is now being called the Great Recession lasted from December 2007- June 2009, it is the longest recession since the Great Depression. Statistically, the current expansion has not been good with major issues circling around weak residential and commercial real estate markets and a high unemployment rate. The current economy in the United States is expanding slowly. Although the economy has grown, it is not growing fast enough to sustain the unemployment rate in America.
The prime rate is the interest rate that commercial banks charge. The prime rate affects the lending rates to mortgage, small business, and personal loans. According to bankrate.com, the Wall Street Journal states the current prime rate for the United States for the week of Dec 12, 2012 is 3.25% and it is holding steady at this rate as it has been the same for a year. According to bankrate.com, the current interest rate on credit cards is 14.02% fixed and 14.58% variable. A fixed interest rate means the rate does not change. Under a variable loan, the lender can change the interest rate.
In the United States, the current unemployment rate is down to 7.7 percent according to the U.S Bureau of Labor Statistic. The current number of unemployed persons is at about 12 million. This number has changed very little in the last year. Employment has increased in health care and retail.
The inflation rate tells how fast prices change in the economy. Inflation rates are calculated using the current CPI (Consumer Price Index). In October, the inflation rate dropped 0.4% from October – Nov 2012.
Gross Domestic Product (GDP) is defined as the value of all goods and services produced in the United States. This figure is released quarterly. In the third quarter of 2012, The GDP increased at an annual rate of 2.7%.
Government tax policies influence financial planning. Tax policies shift over time. Unemployment can affect financial plans making it more difficult to budget, save, and meet financial obligations. Slow economic growth can lead to a rise in unemployment rates. Just keep in mind not to live outside your means, life is a cruel teacher, she gives you the test, and then she teaches you the lesson. Don’t let this happen to you.
.

References
 Bankrate.com. (Sep 2012). Gross Domestic Product. Retrieved from http://www.bankrate.com/rates/economic-indicators/gdp-gross-domestic-product.aspx
 Bureau of Labor Statistics. (Nov 2012). US Inflation rate calculator. Retrieved from http://www.usinflationcalculator.com/inflation/current-inflation-rates
 Thredgold, J. (Jan 2012). www.thredgold.com Retrieved from http://www.contractingbuisness.com
 www.bakrate.com. (2012). Prime Rate. Retrieved from http://www.investopedia.com
 www.bls.gov/news.release/pdf/empsit.pdf. (Nov 2012). The employment Situation. Retrieved from http://www.bls.gov/news.release/pdf/empsit.pdf
 www.sctimes.com. (May 2012). Retrieved from http://www.sctimes.com

References:  Bankrate.com. (Sep 2012). Gross Domestic Product. Retrieved from http://www.bankrate.com/rates/economic-indicators/gdp-gross-domestic-product.aspx  Bureau of Labor Statistics. (Nov 2012). US Inflation rate calculator. Retrieved from http://www.usinflationcalculator.com/inflation/current-inflation-rates  Thredgold, J. (Jan 2012). www.thredgold.com Retrieved from http://www.contractingbuisness.com  www.bakrate.com. (2012). Prime Rate. Retrieved from http://www.investopedia.com  www.bls.gov/news.release/pdf/empsit.pdf. (Nov 2012). The employment Situation. Retrieved from http://www.bls.gov/news.release/pdf/empsit.pdf  www.sctimes.com. (May 2012). Retrieved from http://www.sctimes.com

You May Also Find These Documents Helpful

  • Satisfactory Essays

    BUSI 303 Exam 1

    • 1033 Words
    • 12 Pages

    Gross Domestic Product is the total market value of all the goods and services produced by a nation during a specified period.…

    • 1033 Words
    • 12 Pages
    Satisfactory Essays
  • Better Essays

    The gross domestic product, or GDP, is the amount of the nation’s net exports during a given term say a month or a year, expressed in a dollar amount. Economists measure, record, chart, and analyze the trends and fluctuations in the GDP. They use the data to gauge which state of the business cycle the economy is in: contraction, trough, expansion, or peak. This information influences whether businesses will save or invest, hire or fire, and survive or die.…

    • 1126 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Eco 372 Week 5

    • 919 Words
    • 4 Pages

    First of all, Gross Domestic Product (GDP) is the representation of the total dollar value of all goods and services produced over a specific time period (Investopedia, 2012) This is the actual “size” of the economy.…

    • 919 Words
    • 4 Pages
    Better Essays
  • Good Essays

    In the current state of unemployment as of July 2013, twenty eight states have had increases, eight states decreases,…

    • 1418 Words
    • 6 Pages
    Good Essays
  • Good Essays

    GDP is the statistic used to measure the economy. In other words, the U.S. economy, as measured by GDP, is everything produced by all the people and all the companies in the U.S. GDP looks at the total income that each individual in the economy is earning as well as how much is spent on the output of goods and services in our economy. GDP measures four separate components of the economy’s spending which are consumption, investment, government purchases, and net exports. GDP is a main part in the economy’s business cycle.…

    • 484 Words
    • 2 Pages
    Good Essays
  • Good Essays

    You Decide Gm545

    • 589 Words
    • 3 Pages

    The U.S. economy has fallen into a recession. It is a severe and deep recession, and one that some economic analysts say may persist for at least another year. The unemployment rate has risen to levels not seen in over 20 years. The current unemployment rate is at 8% and is expected to rise further. The inflation rate is -2.4 percent, meaning that overall, prices are falling.…

    • 589 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    MacroEconomics

    • 624 Words
    • 3 Pages

    The Gross Domestic Product (GDP) defines aggregate output as the monetary values of all final goods and services that are produced within the borders of a given country during a specified time frame which is usually a year (McConnell, 2012). To obtain an accurate measure,…

    • 624 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Gross domestic product (GDP) is the total value of all final goods and services produced in an economy in a one-year period.…

    • 855 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Economic Critique

    • 1396 Words
    • 6 Pages

    Unemployment has extremely negative effects on many people and businesses. The government budgets funds for unemployment benefits and when the unemployment rate rises, the government has to re-allocate funds to accommodate the rising rate. Reallocating these funds also can be challenging when the unemployment rate increases because fewer citizens are paying taxes that fund welfare programs (Buzzle, 2013). Unemployment also can be detrimental to businesses. When families have a reduction in income, they often reconsider what their necessities are, and they often stop purchasing certain items, putting businesses and the economy at risk (Buzzle, 2013). Although it is evident that unemployment affects those looking for work, it can also negatively affect those working because the cost of labor decreases. People are doing more work and are receiving less compensation. They are also willing to accept lower wages just to ensure they have a job (Buzzle, 2013)…

    • 1396 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Interest rates in the United States vary depending on what is being assessed. Home mortgage rates are as low as 2.26% in some areas. The Federal Reserve stated in August that they were going to further steps to stimulate growth if the job market does not show sustained improvement (U.S. Federal Reserves leaves monetary policy unchanged, August). Interest rates are defined as "the prices that are charged or paid for the use of financial asset." Many people refer to credit as "other people's money" this usually involves borrowing money from the bank or from family members for a reasonable set interest rate. The interest can be paid along with the monthly payment or be paid al at once at the beginning or end of the loan. The Federal Reserve sets the national interest rate and thereby guides the country through inflation and then recession, adjusting the rate to try and control either phase. This fluctuation also controls how people buy and build.…

    • 1959 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Unemployment in America

    • 1267 Words
    • 6 Pages

    The unemployment rate is important to us because it is one of the ways in which we measure economic health and gauge the economy’s growth rate. The effects of unemployment do spill over into other areas of the economy. When people are jobless, they have less disposable income causing a lower demand for nonessential goods and services. With lower spending by consumers, firms may be forced to look at ways to cut costs in order to stay afloat. One way to reduce expenses is to lay off more workers, resulting in a seemingly endless cycle as even fewer families are able to spend money to rejuvenate the companies’ business levels.…

    • 1267 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Eco 372 Term Definition

    • 726 Words
    • 3 Pages

    The definition of gross domestic product (GDP) is the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. The GDP report is released at 8:30 am EST on the last day of each quarter and reflects the previous quarter. Growth in GDP is what matters, and the U.S. GDP growth has historically averaged about 2.5-3% per year but with substantial deviations. Each initial GDP report will be revised twice before the…

    • 726 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Eco 372 Economic Analysis

    • 1636 Words
    • 7 Pages

    A review of the fiscal policies pending in congress is necessary for an accurate recommendation. The bills chosen are inclusive to the proposal and are shown below. The impact of these fiscal policies on the aggregate demand is designed to shift right.…

    • 1636 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Gross domestic product: is the value of all goods and services produced in a country in any given year or specific time period. This is measured in dollar amounts and basically the higher the GDP, the better the economy is for that country.…

    • 1048 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Gdp Research Paper

    • 646 Words
    • 3 Pages

    Gross Domestic Product (or known as GDP), is defined as, “aggregate output as the dollar value of all final goods and services produced within the borders of a country during a specific period of time, typically a year” (McConnell, Brue, & Flynn, 2012). This measures the value of the output in monetary terms, and you can check current trends of the GDP by taking a look at the Bureau of Economic Analysis website. Today, we are taking a look at the “Release Highlights” link to check the most current trends within the GDP.…

    • 646 Words
    • 3 Pages
    Good Essays