The United Sates economy is the strongest economy in the world. The economy remains vibrant despite having experienced eight recessions since 1929. The goal of all the economic policy makers is to maintain a healthy economic growth rate. In the last quarter of 2013, the economy had grown at a rate of 2.6 %. The same growth was not reflected in the first quarter of 2014, with a Gross Domestic product, decreasing with one percent. A healthy growth rate grows fast enough to create jobs for the unemployed and avoid inflation (Matoloni, Shoemaker, & Aversa, 2014).
The Gross Domestic Product of the United States of America is $ 17.43 trillion. The figures are, as a result, of the growth of labor and property in the United States of America. In the first quarter of the 2014, the Gross Domestic Product reduced with one percent as compared to the last quarter of 2013. The greatest decreased was in the private inventory investments which contributed to the decline in the Gross Domestic Product (Matoloni, Shoemaker, & Aversa, 2014).
The personal commodity expenditures are the largest components of the United States economy. Although the personal expenditures slightly reduced in 2014, it remains to be the largest component of the economy. The exports of goods and services constitute the smallest component of the economy. Personal consumption is the fastest growing component of the economy. The development is, as a result, of reduced inflation and increased employment.
Increase in unemployment results to more money in circulation. Among the major component of the economy include government spending, personal consumption, individual investments and exports and imports (Matoloni, Shoemaker, & Aversa, 2014). Personal inventory investment caused the greatest change in the economy in conjunction with the personal consumption. The reduction is personal consumption was, as a result, of the end of the festive period at the end of the year. The consumer price index increased at with 2.0 percent in the last month. The consumer price index increase is a cumulative impact of the gradual increase in the transport prices and increase in the price of housing and water.
References
Matoloni, L., Shoemaker, K., & Aversa, J. (2014, May 29). National Income and Product Accounts Gross Domestic Product: First Quarter 2014 (Second Estimate). Retrieved from Beaurau of Economic Analysis: http://bea.gov/newsreleases/national/gdp/2014/gdp1q14_2nd.htm
