Economic analysis Essay Example | Topics and Well Written Essays - 1750 words

Economic analysis - Essay Example This paper assess a year by year economic indicators from the year 2012 to the year 2014 Economic growth is the measure of the change in gross domestic product, abbreviated as GDP. On the other hand, GDP is defined as the market value of the goods and services attributable to labour and property located in the economy. The gross domestic product measures the national income (sum of factor incomes) and output for a given country’s economy. It is equal to the total expenditures for all the final goods and services produced within the economy for a given time frame. The United States GDP in the year 2012 was worth 16, 244.60 Billion dollars1 and this value it was the worlds highest and over 25 % of the total value of the world’s economy. This was a growth from 15, 533.80 Billion dollars recorded in the previous year. This signaled a growth of 2.8% on the GDP recorded in the year 2011. Economic theory asserts that an economy’s GDP consists of total consumption, total investments and net exports; the latter is the difference between the total value of exports and imports. The estimated value of the decomposed components of the GDP were as follow; household consumption -70.9%, government consumption-19.5%, investment in fixed capital-12.8 %, investment in inventories-0.4%, net exports of goods and services negative 3.6 %.2 At the estimated percentage of more than 70%, indeed consumers are the engine of the US economy. Consumers spending have grown rapidly out of confidence in the 2011 economic growth. In the United States, the country has grown to be an imported consumer oriented goods and services shown by the negative value of the net exports, which means that the value of imports exceeded the value of exports. Consumer spending at percentage of 70.9 out of the GDP is the single largest piece of spending. During the period that transverse the dip and the recovery,