Paper Topic:

Macroeconomics - Business Cycle

There are several economic indicators economists use to determine activities in the business cycle . The four that remain constant are Gross Domestic Product (GDP , Real Disposable Income or Gross Domestic Income (GDI , Employment levels , and Prices of goods and services purchased by U .S . residents . These economic factors determine the aggregate level of activity and how consumers are able to respond

According to the Bureau of Economic Analysis , GDP increased 2 in the 3rd quarter in 2006 , real disposable income increased 0 .3 in November of 2006 , and Unemployment rate remain above

5 .5 and the price index rose .1-percentage point of 3 .2 . Although the United States economy has experienced increases in GDP , GDI , and Price Index , these increases are minimal and reflect slow growth . The increases in GDP reflect positive contributions in personal consumption expenditures , software non-residential structures , and state and local government spending and decreases in services . Unemployment remains at a high level , which is a key indicator the economy is not producing at economic efficiency . Since the end of the economic recession in 2001 the economy has been in a recovery . I think it still is experiencing a recovery

In 2006 the economy key indicators rose minimally compared to historical levels . According to the Bureau of Economic Analysis the GDP has been lower compared to GDP levels from 2001 to 2005 , with the exception of 1st quarter of 2006 . In 2004 , the economy experienced an increase in National income levels however due to inflationary prices this increase in income appeared non-existent

Although the government has been creating jobs for the economy , the amount of jobs expected to be outsourced to Europe and countries like India are will be above 3 .3 million by 2015 . With inflation continuing to rise , high unemployment rates , and high exports , the American economy will have a difficult time recovering to a stable position...

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