This website uses cookies to ensure you have the best experience. Learn more

Impact Of Real Gdp In Home Building

525 words - 3 pages

The best measure of the economy's health is the real growth rate (growth in excess of inflation) of the Gross Domestic Product (GDP). A recession is considered to be a period when GDP growth is negative for two consecutive quarters. The country's Real Gross Domestic Product is the sum of the output of goods and services that are located in the United States. GDP is a measure of total spending in three categories (consumer spending, business spending, and government purchases), and is adjusted for net exports. Net exports is negative because the United States imports far more than it exports. Consumption (consumer spending) is the most import component and comprises approximately 68 percent of GDP.The annual real GDP growth ...view middle of the document...

When the economy is fully employed (generally considered to be when the unemployment rate is around 5.0%, real GDP growth of 2.5% has traditionally been considered to be the long-term achievable growth rate. This range is determined by adding the historical population growth of 1.0% and the historical productivity improvement of 1.5%. Recent technological advancements, however, have led to significant improved productivity, which in turn has led Federal Reserve Chairman Greenspan and others to conclude that 3.0% to 3.5% may be the new long-term sustainable growth rate. (BEA)The Federal Reserve controls the discount rate (the rate at which banks borrow from the Fed) and the Fed Funds rate (the rate at which banks borrow from each other). These rates have a "trickle down" effect on economic growth (GDP) because higher bank costs lead to higher borrowing costs for consumers and companies, which in turn slows spending. Additionally, a trickle down effect occurs on mortgage rates because banks must raise mortgage rates to cover their costs. Higher mortgage rates eventually dampen housing demand, which eventually reduces economic growth.When the economy is growing faster than the Fed deems to be sustainable, the Federal Reserve is inclined to raise interest rates to slow the rate of growth and prevent inflation from accelerating. A quickly growing economy can lead to rapidly rising wages and salaries, which increases the cost of goods and, therefore, leads to inflation.REFERENCES:BEA, U.S. Department of Commerce, National Economics Accounts "News Release: Gross Domestic Product, Third Quarter 2004" October 29, 2004, Volume BEA 04-48.

Other Essays On Impact Of Real GDP In Home Building

The Vikings In The Middle Ages. Thesis: The Invasions Of The Vikings Into England Throughout The 8th, 9th, And 10th Centuries Had A Great Impact On The People And History Of That Time

1107 words - 5 pages Scandinavian rulers started their own currency, they modeled their coins off of the stolen English ones (Davies 1). In turn, the English had just as large an impact on the Vikings as the Vikings did on the English.Works Cited:Bakken, William. "A Biographical Sketch of Cnut the Great: Emperor of the North".November 9, 1994., Nicola. "The Vikings in the British Isles". November


401 words - 2 pages Throughout history, the roles of women have changed dramatically. Women have been enslaved, been stripped of their rights, been given more rights, have been put down in society and been brought up. Women slowly, but surely have evolved into individuals one sees today: in public office, law firms or even the five o'clock news. However, this evolution did not occur overnight. It took time and effort to attain the position in society they have

Economic Reform/Policy Mix, Covers Macro And Micro Economic Reforms In Australia

2659 words - 11 pages peak in 2014‑15 and come down after that. Australia's net debt as a share of GDP is expected to peak at less than one‑eighth of the level in the major advanced economies.QUESTİON 5 Appendix E - Major initiatives in the 2013-14 Budget 201213 $m 201314 $m 201415 $m 201516 $m 201617 $m Total $m Nation building infrastructure (a) 195.3 0.0 517.7 862.8 1,510.5 3,086.3 Bruce Highway Brisbane Cross

Year 11 Economic Analysis Of China And Australia, Including Economic Growth, Employment And Unemployment, Quality Of Life And Role Of Government

2267 words - 10 pages Economic Growth.China.China is classed by the World Bank as a lower middle-income country. China's real GDP grew at a rate of 9.1% in 2003, up from 8.0% in 2002, meaning that even economic growth is increasing rapidly in China. China's GDP growth rate is even faster than the US, and has enjoyed some double-digit growth rate since it has opened to economic reform.This rapid growth had brought opportunities and challenges - both for China and for

Macroeconomic Review Of Japan

9970 words - 40 pages Yasukuni war shrine and his decision to send Japan's Self Defense Force to Iraq in early 2004. Mr. Koizumi and his Liberal Democratic Party are now considering amending Japan's constitution to allow the country more leeway in maintaining regional stability.Economic data2000 2001 2002 2003GDP per head ($ at PPP) 25,948 26,639 26,944 28,000GDP (% real change pa) 2.14 0.60 -0.24 2.72Government consumption (% of GDP) 16.43 17.08 17.66 17.50Budget

Financial Liberalization

8415 words - 34 pages indicator of financial depth and GDP growth rate as an indicator of economic growth. Two models have been employed to examine this linkage in a stepwise fashion. In the first model, the impact of interest rate reforms on financial depth is examined using a financial deepening model. In the second model, the dynamic causal relationship between financial development and economic growth is examined by including investment as an intermittent variable. The

The Inflation Of Macau

1285 words - 6 pages In the first half of the 1990s when the economy grew at an annual average rate of 6%, inflation rate, measured by the consumer price index, rose faster at an average rate of 7.8%. In the wake of the Asian financial crisis in October 1997, which sent most Asian Pacific countries into recession, hit hard on Macau's economy. Real GDP did not grow in 1997 and declined by an estimated 31/2 percent in 1998. Inflation declined from about 5 percent in

Poland:My Country Of Origin

884 words - 4 pages of Poland is estimated to be about 368.1 billion dollars, and the GDP real growth is 1.2 percent.*Literature began to develop in the tenth century, and won universal recognition in Polish language. In times of national stress, literature has played a major roll as the repository of the patriotic spirit of Poland. Under the impact of the Renaissance and the reformation, Polish literature reached great heights. The sixteenth century was known as the

Case Against The Minimum Wage

1887 words - 8 pages the federal government to subsidize the hiring of low skilled workers. A third alternative would involve the government to increase the Earned Income Tax credit to low wage workers (Taylor 38). The fourth alternative is to decrease or even eliminate the 170,000 regulations currently in place by the federal government (Dorn 2013).The following is an economic model showing how increasing the minimum wage will hurt the real GDP. The real GDP would

Customer-Driven Quality

1932 words - 8 pages Customer Satisfaction Index (ACSI), to measure satisfaction for 30 customer segments of 29 agencies, provides the first cross-agency measure of customer satisfaction with Federal services. The agencies include most of the high impact agencies that deal with 90% of the government's customers. This agency was established as an economic indicator of satisfaction with quality in 1994 and is a product of a partnership with the University of Michigan's

Role Of Reserve Bank Of Australia And Interest Rates

2010 words - 9 pages expectations - higher interest rates encourage lower expectations of inflation in the futureEg: Despite the small size of the increase, the impact on the economy was considerable. Almost immediately the standard variable home loan interest rate rose to 7.32%, increasing monthly repayments on an average mortgage of $250,000 by $40.18.Evaluation of Monetary PolicyThe floating of the exchange rate in 1983 allowed the RBA to have greater control over

Similar Papers

The Impact Of European Imperialism In Africa

593 words - 3 pages .Resistance Against European ImperialismOriginaly Africans tried to oppose the Europeandomination, but even though the Africans werefighting on their own soil their technoligy of spears,and muskets could not with stand the semi-automaticrifle of the Europeans. In London 1900 a Pan-Africanconference was created, mostly consisting ofAmerican or West Indian blacks, that saw thedomination of their home land with horror and

Impact Of Mass Media In Bangladesh

4181 words - 17 pages Term paper:Title: Impact of Mass media in Bangladesh.Submitted to:Lutfun Nahar LataFaculty, Department of Economics and social science (ESS)BRAC UNIVERSITYSubmitted by:Anita Islam Saiba ID- 14104161Nikita Azmi Hasan ID- 13103007Nusrat Sharif ID- 14104021Index Chapter Page no. 1. Introduction 5 2. Methodology 2.1 Focus Group 6 2.2 Group Size 6 2.3 Data Collection 6 2.4 Data Analysis 2.5 Limitation 7 3

Disadvantages And Advantages Of Home Schooling. Situations In Which Home Schooling Would Be Better For A Child And For An Educational System. Opinion!!!

629 words - 3 pages This is a very controversial issue for myself as I wasin 4-H while in high school and I knew a lot of home schoolers. In fact some of my good friends switched from public school to home schooling in the middle of their high school years. Some of my own opinions ondisadvantages of home schooling include the loss of cultural and economic differences, for example in most public school and many private school situations you are going to have kids of

Assess The Impact Of Social, Political And Economic Issues In Early Twentieth Century Russia In The Downfall Of The Romanov Dynasty

1212 words - 5 pages Untitled "Assess the impact of social, political and economic issues in early twentieth century Russia in the downfall of the Romanov Dynasty." The downfall of the Romanov dynasty was due to the impacts of bearing internal factors on Russia such as the social, political and economic issues present in early twentieth century Russia. These issues were largely manufactured by previous generations of Tsars but ultimately set