Question

g The gross domestic product (GDP) is looking at the total production of goods and services that are produced within the United States economy. Examine what the GDP has done in the past 5 years in the United States. What does this indicator tell us about how the economy is doing

Answer 1

Answer and Explanation:

The gross domestic product(gdp) is the total market value of all goods and services produced in a country in a year.

The GDP growth rate of US in the last five years is as given below:

2016: 1.64%

2017: 2.37%

2018: 2.93%

2019: 2.16%

2020: -3.51%

2021 first quarter: 6.39%

From the above, we can see the growth rate of US GDP has grown steadily from 2016 until the year 2019 when there is a decline of 0.77% from the previous year. In 2020, the US GDP suffers a farther decline as a result of the coronavirus pandemic and has a negative growth rate of -3.5%. However in the first quarter of this year, the growth rate improves considerably, given new innovations and work from home(WFH) work arounds to tackle the challenges of the pandemic to the traditional workplace.