GDP of the United States Assignment Example | Topics and Well Written Essays - 2500 words

GDP of the United States - Assignment Example The United States economy, with regard to recent trends, therefore, should be going forward and getting better. However, the United States is trying to recover due to the fact that the trend is not going as expected, and the question of why America down remains to be answered (Cobb, 1995) is. As regards to above trends in the current account as a percent of united states GDP, of 1980-2010, it is clear that the GDP rates keep fluctuating as it did in past recessions in the United States. According to the Bureau of Economic Analysis (BEA), the real gross GDP recorded an annual increase rate of 1.8 percent in the third quarter of 2011 (News Release, 2011). This trend of increase from the second to the third quarter has been a notable release by the Bureau of economic analysis. The second quarter of the year 2011 saw the real GDP increase by 1.3 percent. The gross domestic product refers to the output of goods and services that labor and property located in the United States produce (News Release, 2011). In the United States, the gross domestic product (GDP) growth rate is an essential component of the economy. For this case, the future of the economic activity is predicted by the yield curve slope and the spread between the interest terms (News Release, 2011). This is because the shifts of the slope are key determinants and indicators of high and low GDP growth. In determining GDP, there are three different approaches, which must carry out similar results. Therefore, the â€Å"total value of production†, the â€Å"total value of income† and the total value of expenditure should reflect equilibrium or simply be equal (News Release, 2011). The first method involves deriving a residual value and is referred to as the production approach (Krugman, 2001). Production approach involves taking an estimate of each industry’s gross output from other industries, and this is used to derive each industry’s residual value.