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Based on macroeconomic data, predict trends in current GDP growth, inflation, and interest rates

Economics Dec 14, 2020

Based on macroeconomic data, predict trends in current GDP growth, inflation, and interest rates. Do you think policies have been effective?

Expert Solution

GDP (Gross Domestic Product) refers to an economic metric that is used to measure the number of goods and services that are produced within a nation. From 2018 to 2019 financial year, the U.S GDP growth rate has been 2.3%.

Inflation relates to an economic metric that is used to determine how the purchasing power of a currency has declined over time. The inflation rate is at 1.2%, which is a decline compared to the previous year, which was at 1.4%.

Interest rate refers to the amount of money that financial institutions charge for their services. The interest rates within the United States has declined over time.

Based on the data from the current economic indicators, the economy is growing. This means that the economic policies that the United States government has implemented are efficient because they help promote economic growth.

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