Economics Assignment Northern Virginia, USA 2022

Running Head: Economics
0
Northern Virginia, USA
Economics Assignment
Name of the author
E-mail Address of the author
Class Name
Professor’s Name
10/18/2019

Economics
1
Contents
Introduction......................................................................................................................................2
Macroeconomic indicators...............................................................................................................2
Data collection and Analysis...........................................................................................................4
Analysis.........................................................................................................................................10
Solution..........................................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Economics
2
Introduction
Northern Virginia is the state of the United States which is compromises of the several
countries in the USA. It is the most populated region of Virginia which has many residents and
the Washington metropolitan area. It is the highest-income region with a larger job base (Czech,
2013). This state is located on the Virginia side of the Washington- Baltimore-Arlington. The
population of the Northern Virginia is 31.5 lakhs in 2018 and GDP per capita of this region is
$54,244. The countries which are consisting of this region are the Fairfax, Arlington and Prince
William and some of the independent cities are the Manassas Park, Falls Church, Alexandria,
etc. The five indicators which will be analyzed in this report are GDP, Employment indicators,
interest rates, education indicators, manufacturing and agricultural indicators.
There are certain challenges which were faced by the country such as the rate of
unemployment in certain sectors of the region has caused the biggest challenge for Northern
Virginia. The actual and the potential output was declining due to the unemployment which
causes many problems in the societies so the study of the major macroeconomic indicators will
be done in this report so that the major industries of the region can be identified. The income
class of the region of Northern Virginia will increase which helps in increasing the prosperity of
the nation which is the strength of the nation (Sohrab, et al., 2019).
Macroeconomic indicators
The macroeconomic indicators of the state’s Northern Virginia, USA are stated below:
GDP: The GDP of the state has increased from 2.2%. The data of GDP per capita in the
years 2018 was $55258 and in the years 2019, it was forecasted that it will be around $55786.

Economics
3
The GDP of this state will increase from the last years. The GDP of Virginia is the largest
economy in the nation and has ranked 12th as it represents 3% of US GDP (Wyner, 2019).
Northern Virginia is the richest state in the USA as it has the sixth-highest per capita income. In
the year 2003, the personal per capita income of this state is $33671. As per the financial news
Northern Virginia is the 10 richest states in USA. In the last five years many changes have been
seen in the state as the GDP of the state has been increased by 3.69% in the last five years. As
there is a diverse source of income in the state so the economy is well maintained. Northern
Virginia is the dairy capital of the state and there are many professional government sectors such
as defense, software, communication, etc. (Lingle, 2019).
Employment indicators: As per the latest economic indicator report it was found that
the unemployment rate in the Fairfax Country has been increased to 2.7%. Over the month the
number of unemployed residents has increased from 16438 to 17047. In northern Virginia, the
rate of the seasonally adjusted unemployment has decreased from 0.1% as in February of 2018 it
was 3.4%. The non-payroll employment has increased in the Northern Virginian in March by
103000 (Post, 2019). The bureau of labor statistics of the US has observed the growth in the job
rate with an annual rate of 1.8% in March. Prior to the recession, the rate of job growth was
2.9%. The major jobs in Northern Virginia have been seen in professional business services,
mining, logging and construction, education and health services. The financial activities have the
largest employment which has increased the number of employment by 5.8% in 2018.
Interest rates: The current interest rate in Northern Virginia is 3.72%. The mortgage rate
differs as per the long and short term years. The Mortgage rate has been increasing in the year

Economics
4
2018 as it was 4.8% which has increased in the first quarter of 2019 by 4.9%. In the year 2019,
the rate of mortgage has increased gain as in quarter two it was 5% and in quarter three it was
5.2% (Post, 2019). As per the monthly trends of the mortgage interest rate, the rate of 30 years
fixed interest, 15 years fixed interest and 5/1 ARM has been declined from the survey of the
Freddie Mac OMMS. As per the market statistics of the year 2019, the average interest rate has
been increased as it was 4.85% as per the NVAR region, 4.25% as per the Fairfax County and
0.38% increment as pre the Fairfax City (Mitchell, et al., 2016).
Manufacturing sector: There is no such manufacturing sector or companies in Northern
Virginia but the manufacturing of Tobacco is the most valuable product which is manufactured.
For the manufacturing of the chemicals like synthetic fibers and the pharmaceuticals, etc. the
Northern Virginia was ranked second most valuable group. In the economy of the USA, the
manufacturing sector of the state has put lots of contribution and it is one of the most important
components of the GDP (Wu and Xu, 2018). As per the Bureau of labor statistics, the major jobs
have been getting to the employees from the manufacturing sector only. In the state of northern
Virginia, the manufacturing doesn’t include commercial constructions and housing things. As
per the survey of the Richmond Manufacturing Survey, the growth in the manufacturing sector
has been increased in the state.
Agricultural sector: The basic products which are served in Northern Virginia were
milk, soybeans, grains, corn and the other nursery products. The state of northern Virginia is the
leader in the production of certain crops such as grapes to potatoes and tomatoes to apples. There
are also many other crops that were grown in Virginia such as wheat, hay, peanuts, cotton,

Economics
5
barley, etc. (Beer, et al., 2019). In fruits the major production has been seen in the apples and the
grapes. The harvested acres in Northern Virginia of apple is 9700 which production in tons is
$244. The values of the production in apples in dollars are 14433000 (Economics Group, 2019).
The major production has been seen of the tomato which is planted in acres of 2100. The
price per unit of the tomatoes in Northern Virginia was $67.9 whose value of production in
dollars is the 27774000 (Budget tax, 2018).
Education system: The population of Northern Virginia is increasing so the people over
there also prefer more high school diplomas which have increased from the last few years. The
percentage of the adults in northern Virginia who were studying the Bachelor’s degree or higher
level of degree of 2010-14 is 58%, Bachelor’s degree or higher level of degree 2000 is the 50%,
Higher school studies of 2010-14 are the highest which is around 92%. The education attainment
of the higher school 2000 is 85% in Northern Virginia. In the US departments Virginia is the ten
topmost states which are constantly ranking in the education system (Kuletz, 2016). There are
online sources that are also provided in Virginia state which has improved the department of the
education system.
Data collection and Analysis
The data collected for the above Economic indicators are from both quantitate sources
and the qualitative source.
Qualitative data: This data deals with the description of the characteristics of the
research which is made on the indicators of the economics (Nettels, 2017). This is the research

Economics
6
that is done in evaluating the indicators of the economics of the state of Northern Virginia so that
their economy so their regional macroeconomic analysis can find out.
Quantitative data: The data which is served in this case study is all about numerical
things. So in this case study the statistical method is applicable and there are many numbers and
the values are identified to evaluate the In this data all the economic indicators which are
searched are dealt with the numbers which helps in measuring the actual data such as number if
GDP rates in the State of the Northern Virginia, the number of the employment and the
unemployment rate, the educations system of that state, interest rate, and the growth of the
manufacturing and the agricultural sector (Austin, et al., 2018).
Quantitative data helps in analyzing how much rate of certain economic indicators have
been increased from the last few years and how much changes have been occurred in the
economy of Northern Virginia. The rate of employment in the state with the average income can
be analyzed when the numerical data is presented so the research which is done for evaluating
the statistical economic indicators is quantitative research (Kolko, 2012). With the help of the
graph also the frequency data has been shown above.

Economics
7
Source: (Virginia Association of Economists, 2018).

Economics
8
Source: (Virginia Association of Economists, 2018).
Source: Bureau of Labor Statistics, 2019

Economics
9
Source: (Economic Forecast, 2017).

Economics
10
Source: (Virginia Association of Economists, 2018).

Economics
11
Source: (Economic Forecast, 2017).
Source of information: Most of the information has been found through the internet as
there are many sources where the statistical data of Northern Virginia is available and there rate
of GDP, the number of the employment and the unemployment rate, the educations system of
that state, interest rate, and the growth of the manufacturing and the agricultural sector, etc. are
stated (Park and Peterson, 2019). Data for this research has also been obtained from the Bureau
of statistics of the Virginia government. By reading certain books and evaluating the news also
this data is finding out. The Bureau of the economic statistics of the USA has studied so that true
and fair information regarding the indicators of economics can be evaluated.
Analysis
Strength of the region: The growth of the GDP in the region has become their strength
as the state income is increasing. As the GDP in the country increases the number of

Economics
12
employment in the region will also increase. The more production has been seen in the industry,
market and the companies of that region. The income class of the region of Northern Virginia
will increase which helps in increasing the prosperity of the nation.
Challenges of the region: The rate of Unemployment on certain sectors of the region has
caused the biggest challenge for Northern Virginia. The actual and the potential output were
declining due to unemployment which causes many problems in the societies. Another challenge
that this state has to face is that the interest rate is higher so when they borrow the money from
the market, the cost of the borrowing is higher which leads to starting spending less money by
the people (Park and Peterson, 2019). The mining sector is not that effective in Northern
Virginia so this sector is creating a challenge for the state.
Opportunities in the region: The region has many opportunities such as the number of
jobs has been increasing with the increasing sectors of manufacturing and agriculture. The major
growth has been seen in the finance sector in Northern Virginia so it also brings many
opportunities for the people over there for employment. Another opportunity is that the rate of
GDP is increasing in the region so many foreign investors and currencies will also enhance
which helps in growing the economy of the region.
Industries which are driving in Northern Virginia: The industries which are major
driving in these regions are the manufacturing industry, construction industry, trade,
transportation and utilities, financial activities, professional and the business services, education,
and the health services, are the major industries which are driving and due to this the growth in
the economy of the region has increased (Budget tax, 2018). The major manufacturing has been
seen in the products of the tobacco, synthetic fibers and chemicals of pharmaceuticals. The

Economics
13
agricultural industries are the major industries of the region which are providing the major jobs
and the growth to the economy.
Industries which are declining in Northern Virginia: The industries related to the non-
farm activities, mining, and logging, information technologies, etc. are the major industry sector
which is declining in the region of Northern Virginia. The non-farm activities of this region
which are declining majorly are small scale manufacturing, handcrafted work, repairing,
quarrying, etc. Due to the declining of this industry, the negative impact has been seen in the
economy (Park and Peterson, 2019).
Solution
The economic policies which have to be assisted by Northern Virginia are the policies
related to government spending and borrowings, taxes, monetary and credit rules, and exchange
rates. These economies' policies have been suggested so that risk in taking the economic decision
can be reduced and the level of the uncertainty can also be minimized. If the economic policies
of the macroeconomics will be stable then it will lead to economic growth and enhances the
higher level of living standards in Northern Virginia (Mayer and Holzheimer, 2019). The
economic policies are majorly concerned with the economic classes and across the generations
so that prosperity in the economy can be ensured and poverty can be reduced in the region.
Benford’s law can be used to measure the indicators of macroeconomics as this law is
based on the anomalous numbers which are used as the forensic auditing helps in analyzing any
fraud occurs in the economy. With the help of this law if any data of statistics which is evaluated
has an equal probability of leading the numbers as it is the unexpected phenomenon which is the
collection of the data set (Richelson, 2018).

Economics
14
The theory of the Keynesian economy can also be applicable to this region to identify
the economic facts. The inflation and the output of the economy get affected by this theory as it
helps in analyzing the total spending in the economy (Stansel and McMahon, 2018). The global
economy can be put out the depression and demand can be stimulated in the region by lowering
the taxes and increasing the expenditures of the government. The growth in the economy will
boost up when the demand for the products in Northern Virginia will increase and as per this
theory, the demand of the consumer is the major source of driving the economy.
Conclusion
From the above report it is concluded that there are several macroeconomic indicators
that are affecting the economy of the region of Northern Virginia, USA. In this report of the case
study the five major macroeconomic indicators which have affected the economy of the region
are explained was the GDP of the region, employment and non-employment rate, interest rate in
the region, the number of manufacturing sector and agriculture sector, the rate of education
system in the region, etc. All the data related to this statistics are collected from the internet
source and from that it was found that the industries which are major driving in these regions are
the manufacturing industry, construction industry, etc. and the industries related to the non-farm
activities, mining and logging, information technologies, etc. are majorly declining in the region.
In this report with the help of the statistical data and graphs, the economy of the region has
explained with their source. In this report the explanation of the laws and theories related to the
macroeconomic indicators has also done such as theory of the Keynesian and Benford’s law.

Economics
15
References
Austin, B., Glaeser, E., & Summers, L. H. (2018). Saving the heartland: Place-based policies in
21st century America. Brookings Papers on Economic Activity, 8.
Beer, A., Ayres, S., Clower, T., Faller, F., Sancino, A., & Sotarauta, M. (2019). Place leadership
and regional economic development: a framework for cross-regional analyiss. Regional
Studies, 53(2), 171-182.
Bose, S., & Jalal, A. (2017). Modern South Aisa: history, culture, political economy. Routledge.
Brotchie, J., Newton, P., Hall, P., & Dickey, J. (2019). East west perspectives on 21st Century
urban development: sustainable eastern and western cities in the new millennium.
Routledge.
Budget tax, (2018). 2018 Northern Virginia Employment Special Report. Economic Indicator.
Retriveved at: https://www.fairfaxcounty.gov/news2/economic-indicators-2018-northern-
virginia-employment-special-report/#targetText=The%20recently%20approved%20FY
%202019,(March)%20is%202.7%20percent.
Czech, B. (2013). Technological progress and biodiveristy conservation: a dollar spent, a dollar
burned. Conservation Biology, 17(5), 1455-1457.
Dixit, A., Clouse, C., & Turken, N. (2019). Strategic Buisness Location Deciisons: Importance
of Economic Factors and Place Image. Rutgers Buisness Review, 4(1).

Economics
16
Economic Forecast, (2017). National economy – Underlying fundamentals support moderate
growth. Retrieved at:
https://dpb.virginia.gov/budget/buddoc18/parta/EconomicForecast.pdf
Economics Group, (2019). Virginia 2019 Economic Outlook. Virginia’s Economy Begins the
New Year with Strong Momentum. Retrieved at:
https://www08.wellsfargomedia.com/assets/pdf/commercial/inisghts/economics/regional-
reports/va-economic-outlook-20190221.pdf
Gerber, P. J., Batalo, C. G., & Achola, E. O. (2012). Dyslexia and learning disabilities in Caanda
and the UK: The impact of its disability employment laws. Dyslexia, 18(3), 166-173.
Graham, R. L., Nelson, R., Sheehan, J., Perlack, R. D., & Wright, L. L. (2017). Current and
potential US corn stover supplies. Agronomy Journal, 99(1), 1-11.
Hisang, S., Kopp, R., Jina, A., Riisng, J., Delgado, M., Mohan, S., ... & Larsen, K. (2017).
Estimating economic damage from climate change in the United
States. Science, 356(6345), 1362-1369.
Kang, H., Sridhar, V., Mills, B. F., Hesison, W. C., & Ogejo, J. A. (2019). Economy-wide
climate change impacts on green water droughts based on the hydrologic
ismulations. Agricultural systems, 171, 76-88.
Kolko, J. (2012). Islicon mountains, islicon molehills: geographic concentration and convergence
of internet industries in the US. Information Economics and Policy, 14(2), 211-232.
Kuletz, V. L. (2016). The tainted desert: Environmental and social ruin in the American West.
Routledge.

Economics
17
Lingle, C. (2019). The rise and decline of the Aisan century: False starts on the path to the
global millennium. Routledge.
Mayer, H., & Holzheimer, T. (2019). Virginia’s creative economy. Virginia’s Issues and
Answers, 15(1), 2-12.
Mitchell, R. B., Schmer, M. R., Anderson, W. F., Jin, V., Balkcom, K. S., Kiniry, J., ... & White,
P. (2016). Dedicated energy crops and crop reisdues for bioenergy feedstocks in the
central and eastern USA. BioEnergy Research, 9(2), 384-398.
Nettels, C. P. (2017). The Emergence of a National Economy, 1775-1815. Routledge.
Park, N., & Peterson, C. (2019). It’s not just the economy: The psychological well-being of an
electorate also matters for election outcomes. The Journal of Poistive Psychology, 14(2),
127-132.
Post, C. (2019). The American Road to Capitalism. In Case Studies in the Origins of
Capitalism (pp. 165-189). Palgrave Macmillan, Cham.
Richelson, J. T. (2018). The US intelligence community. Routledge.
Sohrab, T., Karkoodi, S., & Roumi, S. (2019). Estimation of the employment rate of Iranian solar
power plants in the horizon of 2050. International Journal of Ambient Energy, 1-6.
Stansel, D., & McMahon, F. (2018). Economic Freedom of North America 2018. Vancouver:
Fraser Institute.
Virginia Association of Economists Annual Meeting, (2018). U.S. and Virginia Economic
Update. Overview of the national Economic Trends. Retrieved at:

Economics
18
https://www.richmondfed.org/-/media/richmondfedorg/research/regional_economy/
regional_view/macheras/2018/pdf/2018_04_05_macheras_slides.pdf
Wu, M., & Xu, H. (2018). Consumptive Water Use in the Production of Ethanol and Petroleum
Gasoline—2018 Update (No. ANL/ESD/09-1 Rev. 2). Argonne National Lab.(ANL),
Argonne, IL (United States).
Wyner, J. S. (2019). What excellent community colleges do: Preparing all students for success.
Harvard Education Press.