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Aili Saito

U.S. economy picks up speed but doubts surround 2012 outlook - Jan. 27, 2012 - 1 views

  • seasonal trends
    • Aili Saito
       
      GDP can vary due to seasons - similar to seasonal unemployment
  • business investment
    • Aili Saito
       
      will lead to a decrease in AD
  • The United States economy picked up speed
    • Aili Saito
       
      GDP increase = could express this on an AD/AS graph where the AD shifts to the right as well as AS shifts to to the right (both increase) - also leads to inflation
  • ...7 more annotations...
  • their inventories
    • Aili Saito
       
      production increased
  • consumers increased their spending
    • Aili Saito
       
      consumption increased (leads to a shift in AD to the right)
  • overall weakness
    • Aili Saito
       
      could possibly lead to a recession in the future
  • businesses building up their stock of goods
    • Aili Saito
       
      main reason of increase in GDP is the increase of production and increase of stock (AS related)
  • confidence
    • Aili Saito
       
      consumer/business confidence will lead to an increase in AD
  • the report showed GDP grew only 0.8% in the fourth quarter, compared with 3.2% in the third.
    • Aili Saito
       
      there is a decrease in GDP growth - could possibly lead to a recession (negative GDP growth)
  • too weak to warrant higher interest rates any time soon
    • Aili Saito
       
      as interest rates increase, it will lead to an increase in government revenue/profit for banks but also, a decrease in AD
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