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    GDP growth rate

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    You are the newly appointed President of the local Chamber of Commerce. You are making your first presentation to the Chamber and want to make a good first impression.

    Your presentation will be based on the following topic, purpose, and audience.

    â?¢Topic: Expected U.S. GDP growth rate going forward
    â?¢Audience: Local chamber of commerce
    â?¢Purpose: To give business leaders an idea of what the economy may look like based on recent history and expected future conditions
    Part I

    In addressing GDP, consider the following:

    â?¢Trends, forecasts, and statistics
    â?¢How GDP is determined
    â?¢Interpreting GDP
    and have at least one chart

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    Solution Preview

    Step 1
    The trends forecasts and statistics for the US GDP are that the growth rate of the real GDP is increasing. The US growth rate was 2.8 percent n the fourth quarter of 2011. Since 1949, till 2011 the average US quarterly GDP growth has been 3.28 percent. The highest growth rate has been 17.2 percent in March 1950 and the lowest growth rate has been -10.4 percent in March 1958. According to the World Bank at current prices in 2010 the US GDP was $14.58 Trillion US dollars.

    Step 2
    There are three ways in which GDP can be computed. The first is the product approach in which the production (output) of every industry is added to reach a total. The second approach is the expenditure approach in which total expenditures of the people are added up. The third is the income approach in which the incomes of the productive factors are added up. If computed correctly the three approaches give the same GDP figure. The argument is that the ...

    Solution Summary

    This solution gives you a detailed discussion on GDP growth rate