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Economics Indicator Essay

433 words - 2 pages

In this paper the GDP will be forecasted on what the economic indicator will be six months from now, one year from now, and well into the future. These indicators will show how the economy stands in the United States and who they will affect and how these different indicators can affect the economy. The forecast of these indicators will make us aware of which direction the economy could go. The GDP measurements over the next few years can tell us the economy performance in terms of growth. Many people can truly benefit from this information in order to get a real GDP in the ...view middle of the document...

This alone should not make too much of a difference in the GDP. We also believe that the GDP could increase due to the government spending on the war and for continuing homeland security. Also, with the stock markets low investors will begin to purchase more of the cheaper stock to make money. Our team also believes with the holidays coming up there will be an increase in spending while purchasing holiday gifts and traveling. All of these put into consideration within the next six months and we can foresee a slight increase In the GDP.Our team foresees an increase in the GDP one year from now but we believe that it will not be as strong of an increase as in prior years. With tax returns in the first and second quarter, consumers will begin spending money to purchase cars, houses, vacations and luxury items that will help to increase GDP growth. Continued defense expenditures will continue to increase the overall government spending for the year. The housing industry should pick up and this residential investment should make small contributions to GDP growth. The rate of GDP growth is essential to the real estate market, not only because it measures the strength of the economy, but also because the variation from what is believed to be the long-term realistic growth rate affects Federal Reserve policy, which directly affects mortgage rates.

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