Tuesday, May 5, 2020

GDP Forecast for 2002 free essay sample

This is a paper that examines each component and sub-component of GDP current estimates for the year 2002. The components of the GDP are analyzed for their contribution to the estimated results. These include consumption, investment, government spending and net exports. The paper examines all these facts and concludes that the U.S. economy is not on the road of recovery anytime soon and that unless there is an increased level of consumption as well as exports, the likelihood of a higher GDP is dim. One of the largest components of GDP, consumption depends largely on how the masses consume and the price index. In the last few months it could be seen that due to the energy crises, consumption of non-durable goods have slowed down. Producer indicates high price inflation which have gained as much as 1 percent in March, 2002. The rising price of energy which increased by 5.5 percent have resulted in approximately an increase in crude price upto 43%. We will write a custom essay sample on GDP Forecast for 2002 or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As a result of this Economists at Bear Stearns predict that consumer price inflation will rise upto 1.5 percent for the year 2002 from 1.1 in 2001 [Bandur, April 2002].

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