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GDP Growth Rate and its Limitations

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What is the current GDP growth rate for the U.S.? Examine the trend over the past few years. What stage of the Business Cycle would the U.S. economy be in currently given the trends? Why might GDP not be considered an accurate measure of economic well-being of a country? Identify at least three limitations of GDP as a measure of economic well-being.

I went to the Bureau of Economic Analysis website and accessed the table 1.1.1 on GDP. I found the current growth rate of the U.S. to be 4.1% in the last quarter of 2011 and 1.7% in April to June of 2012.

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GDP Growth Rate is discussed step-by-step in this solution. The response also has the sources used.

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Step 1
When we consider the last few years, the US GDP growth rate was lowest in 2008 fourth quarter when the US GDP growth rate reach minus nine percent. Since then the GDP growth rate has shown a tendency to improve. Even though the GDP growth rate last quarter of 2011 was 4.1% and has declined to 1.7% in April to June 2012, the GDP growth rate is positive and the general tendency for the GDP growth rate to improve has continued. From this point of view, the US economy is in the recovery phase of the Business ...

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