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Macroeconomics The Current State Of The U.S. Term Paper

Macroeconomics The current state of the U.S. macroeconomy is one of delicate recovery from a major economic shock several years ago. The economy is growing, albeit slowly, and there remain a number of linger issues that should be addressed. This paper will outline the state of the U.S. economy and develop some policy prescriptions for addressing any issues that may exist.

The gross domestic product grew at an annual rate of 0.4% in the fourth quarter of 2012, which was down significantly from the 3.1% annualized growth that was recorded in the third quarter. The Bureau of Economic Analysis reports that gains in the fourth quarter came from increases in personal consumption spending, nonresidential fixed investment and residential fixed investment. These gains were partly offset by negative contribution from private inventory investment, federal government spending, exports and local government spending (BEA, 2013). Real GDP increased by...

Both of these figures indicate slow but steady growth. Yet, while growth accelerated overall in 2012, it slowed in the fourth quarter (BEA, 2013).
The seasonally-adjusted CPI, a key inflation measure, increased 0.7% in February 2013, and the seasonally-adjusted core CPI increased 0.2%. The all-items index rose 2.0% for the past twelve months, compared with 1.6% for the past twelve months in January (BLS, 2013). These figures are roughly in line with expectations that the Fed has a for moderate, controlled rate of inflation.

Unemployment was 7.6% for March, 2013. This is down from 7.7% in February and represents a general downward slope dating back to October, 2009. Unemployment is still above historical norms, having last been below this level in December, 2008 and having been below this level for at least the five years previous. Thus, unemployment, while…

Sources used in this document:
Works Cited:

BEA. (2013). National income and product accounts, gross domestic product, 4th quarter and annual 2012. Bureau of Economic Analysis. Retrieved April 12, 2013 from http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

BLS. (2013). Consumer price index. Bureau of Labor Statistics. Retrieved April 12, 2013 from http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

BLS. (2013). Labor force statistics. Bureau of Labor Statistics. Retrieved April 12, 2013 from http://data.bls.gov/timeseries/LNS14000000
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