By looking at the data above, 1. Describe and analyze the macroeconomic environm
ID: 1223494 • Letter: B
Question
By looking at the data above,
1. Describe and analyze the macroeconomic environment. Explaining the economic performance from the data.
2.Explaining what you see in your series. What is the economic growth during 2003-2013 ? What is the role of the series that you collected (in point 2 and 3)?
3. Is there any significant changes by looking at the data? and why? Compare values of these series across from 2003-2013.
4. Explain the elements of Macro environment and its impact.
FRED Gross Domestic Product Private Final Consumption Expenditure in United States© Personal Consumption Expenditures: Nondurable Goods 18,000 1 6,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 fred.stlouisfed.org myf.red/g/5f6JExplanation / Answer
1)
As it can be seen form the above graph showing data for Gross Domestic Product, Private Final Consumption Expenditure in the US, and Personal Consumption Expenditures: Non Durable Goods from 2003-2014.
As it can be seen, all the three major components GDP, PCE and Private CE have shown a constant improvement. The increase in GDP has been the maximum while that of personal CE has been more or less stable in increase. This shows that economy is on a steady road to development.
2)
Economic growth i.e. GDP increased from 10,500 to 17,000 in 2014. This is an increase of 6.2% annually, which is a very good one.
Series of PCE and private CE also show an increase, which is an indicator of healthy and growing economy.
3)
Yes, a drop in all the three components in 2009, most probably due to the Great Depression of 2009.
4)
GDP measures the value of goods and services produced in an economy in an year, and thus is the most important economic indicator for an economy.
PCE is the expenditure made by consumers in an year out of their disposable income and accounts for 2/3rd of GDP.
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