Economic Performance of the United States Assignment 2022

Running head: Economic Performance of the United States
Economic Performance of the United States
Name of the Student
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Economic Performance of the United States1
Table of Contents
Introduction......................................................................................................................................2
Production output performance.......................................................................................................2
Unemployment................................................................................................................................4
Price level........................................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Economic Performance of the United States2
Introduction
The United States is one of the developed countries in the world and it has a large
economy. The vastness of its economy can be identified from the value of its gross domestic
product (GDP). In 2018, the GDP of the country was recorded as $20.5 trillion. The main
contributors of the GDP of the country is its major sectors and they are agricultural sector,
manufacturing sector and services sector. In 2017, agriculture sector contributed 5.4% to the
GDP of the country and the value of the contribution has been estimated to $1.053 trillion.
Likewise, the manufacturing sector has contributed significantly to GDP of the country and the
value of its contribution is $2.33 trillion and is 11.6% of the total GDP of the country in 2018.
On the other hand, the service sector is the leading sector in the United Sates with GDP
contribution of $12.88 trillion which is 62.8% of the total GDP of the country
(Data.worldbank.org, 2019). The top 5 products of the US are machinery, medical equipment,
electronic equipment, cars and spacecraft. The top 5 trading partners of the country are Mexico,
Japan, China and Germany. In the last ten years except recession phase the country is performing
well and growing
Production output performance
The economic performance of a country is broadly understand by studying the data of
Real GDP of the country. Real GDP provides the true assessment of the output of an economy
for a specified period of time (Feldstein, 2017). It is calculated by adjusting nominal GDP by
inflation rate such that the effect of the inflation rate is removed from the GDP and thus actual
amount of output of a country. Thus, Real GDP gives the actual idea of an economy. In diagram
1, the Real GDP of the US can be observed and studied. The data taken for studying economic
performance of the country is from last ten years that from 2008-2018. It is evident from the data

Economic Performance of the United States3
that the output of the country has been growing over the years. In the first quarter of 2008 the
Real GDP of the country has been just below $16000 billion. However, the Real GDP during
the2nd half of the year fell and it continued to fall in till the end of 2009. The fall occurred due to
the recession phase occurred in the 2008-2009. After the recession phase is over the country
again started top grew and from 2010 onwards the country kept on improving its production and
in 2019 the Real GDP of the country reached close to $19000 billion. It should also be observed
that the progress in the Real GDP proved to be quite smooth in the last ten years. The production
output level that the economy of the country achieved due to the measures that the government
of the country take to improve the economic condition of are the monetary and fiscal policies
(Hommes, Massaro & Salle, 2019). The government uses its weapons to strengthen the economy
of the country and thus the yearly increase in output of the country has occurred due proper
implementation of the policies. The increase in production mean the economy of the country has
expand over the years
Diagram 1: Real GDP of the United States