Macroeconomics: Analysis of US GDP, China's CPI, US Labor Market, Malaysia's Capital Formation and Business Cycle Risk

Running Head: MACROECONOMICS
Macroeconomics
Name of the Student
Name of the University
Course ID

1MACROECONOMICS
Table of Contents
Analysis of Topic 1..........................................................................................................................2
Analysis of Topic 2..........................................................................................................................3
Analysis of Topic 3..........................................................................................................................3
Analysis of Topic 4..........................................................................................................................4
Analysis of Topic 5..........................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

2MACROECONOMICS
Analysis of Topic 1
Article Source
U.S. 4% GDP Growth Seen More ‘Luck of the Draw’ Than New Reality
https://www.bloomberg.com/news/articles/2018-07-23/u-s-4-gdp-growth-seen-more-luck-of-the-
draw-than-new-reality
Article Summary
The economy of United State has attained a growth rate of 4 percent in the second
quarter. This is so far the highest growth rate since 2014. The economy growth is stimulated by
cut in tax, expansion of trade and increase in inventories in the last quarter of 2018
(bloomberg.com, 2018). The economic expansion however tends to settle down at a less specular
pace.
Analysis of the Article
Aggregate output of a nation is measured by the composite measure named Gross
Domestic Product. GDP of a nation captures the monetary value of produced goods and services
within the nation. There are different ways of computing GDP of a nation. By expenditure
method, Gross Domestic Product is represented as a sum of consumption expenditure,
investment expenditure, government expenditure and net export. Change in any one of these
components lead to a change in measured GDP and growth prospects (Mankiw, 2014). The
higher GDP growth of United State is not generated from a single factor. Multiple factors are at
play that stimulate GDP and economic growth of US.
The first component of economic growth is the growing consumption spending. The
fiscal stimulus given in form of a cut in taxes helps to increase disposable income of the
consumer (Gottheil, 2013). This in turn lead to a higher spending in the economy and higher
growth.