American Government Economy

The U .S . preservation - An OverviewWith a Gross domestic help numeral product close to 14 Trillion at the apprehension quartern of 2007 , the U .S . is the largest and most powerful scrimping in the background Often described as a market-oriented economic system , the U .S . economy is influenced and control conduct to a certain extent by the federal official official and state governmentsIn a three grade menses get-go in 2004 , the U .S . economy exhibited great resiliency by weathering critical events . The aftermath of the September 11 terrorist attacks led to major(ip) shifts in national resources br to fight global terrorist turn . The costly struggle in Iraq led to a more(prenominal)(prenominal) costly U .S . occupation in Sadam Hussein s body liquid . Budget , resources and human capital were huge inv estment fundss in the struggle front . During the same period Hurricane Katrina caused extensive damage in the Gulf Coast . Again vital resources were sacrificed to aid victims and their families as sanitary as affected areas . Soaring oil prices in 2005 and 2006 also threatened the economy specifically climb prices and the tamper of unemployed . This too tested the American economy to its limitsDespite these setbacks , the U .S . economy posted strong growth by the 3rd quarter of 2007 showing that the world s mightiest economy is as sour as everLooking ahead , the economy still faces hanker-term problems including brusque investment in economical infrastructure , rapidly rising health check and pension costs of an aging population , healthy mass and budget deficits , and stagnation of family income in the small(a)er economic groupsGross Domestic ProductStarting in 2004 through the third quarter of 2007 , the U .S . Economy showed strong GDP growth - 2 .9 in 2004 , 3 .2 in 2005 and 2006 and a leap to 4 .2 at th! e subvert of the third quarter of 2007 .

According to the Bureau of economic Accounts , the step-up in GDP primarily reflected increases in consumer expense , investment in equipment and software federal government outgo , and residential fixed investment . The hot seat , in his enounce of the Economy address in January 2007 highlighted the strong and dynamic economy , and discussed the challenges faced in keeping the economy growing . The electric chair stressed that the U .S . economy is resilient and responsive , adding more than 7 .2 million jobs since August 2003 despite numerous challenges including a recession , corporate scandals , the 9 /11 attacks , and the worst inherin g contingency in American historyConsumer Price Index and InflationThe consumer price powerfulness is a measure of the average change over step in the prices paid by consumers for a market basketful of consumer goods and services . During the period 2004 to 2006 , CPI rose at a manageable level - indicating inflation is under control . In 2004 - CPI rose 3 .3 over the previous course . In 2005 , the rate was at 3 .4 and in 2006 it slowed plume back to 2 .5 The recent behavior of inflation bodes well for the long term . As inflation remains low and immutable it has minimal impact on economic decisions such(prenominal) as the ability of businesses to...If you want to get a in force(p) essay, enjoin it on our website: OrderEssay.net

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