Macroeconomic Variables Of The United States Economy Essay

The United States economy is improving slowly, but surely. With the recent struggles in China, one would think that the United States economy would be affected, but it has not shown any signs of changes yet. The United States has the world’s largest national economy. Many other countries use the US dollar as their currency, making the U.S. dollar the â€Å"most used currency in international transactions†. The United States has a mixed economy, which also means capitalism or a market system. A market system is characterized by a mixture of centralized government initiatives and decentralized actions taken by individuals and firms. Market systems consist of private property, freedom of enterprise, self-interest, competition, prices, technology, specialization, and use of money. There are two ways to view the economy, macroeconomics or microeconomics. Macroeconomics consists of the overall status of the economy, while microeconomics focuses specifically on a specific mark et within the economy. This paper will focus on the different macroeconomic variables within the current US economy. The different variables include: GDP (gross domestic product), unemployment rates, inflation rates, interest rates, money supply, personal income, personal saving, etc. Each of these variables plays a role in the economy, while some are more effective than others. Gross domestic product is the total market value of all goods and services produced annually in a nation. The real GDP is when GDP isShow MoreRelatedThe Effect Of Macroeconomic Shifts On The Ridge Tool Company Essay982 Words   |  4 PagesAny company can do well in a vacuum, free from the effects of the economy as a whole. While a firm can be successful with individual households, they are by no means exempt from the effect of macroeconomic shifts. 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