ECO372 Week 1 Discussion Question 4
Identify economic factors that affect the real GDP, the unemployment rate, the inflation rate, and a key interest rate. How do you predict the economy will perform in the next two years given the current state of two of the economic factors you identified? How might your organization be affected by these changes?
Over time, Real GDP, unemployment rate, inflation rate, and interest rates have been affected by many reasons among them are the changes in government policies such as interest rates and taxes, war, natural disasters, higher labor and cost of production, and more.
The Real GDP rate has increase within the last few years showing a raise of 2.1 percent between the fourth quarter of 2009 and the fourth quarter of 2010 and by 2.4 percent in 2011. Taking this increase in the rates of the last few years economist have estimated a potential growth of 4.4 percent per year after 2011; this will be a result of the business investments and residential constructions. However, because they are many workers being lay-off and the slowdown in businesses the gross domestic product is estimated to growth only 2.3% during 2012...
