d 1980s. Economic growth, as measured by average annual changes in real GDP, was 4.4 percent in the 1960s. Average rates of growth decreased during the 1970s (3.3%), the 1980s (3.0%), and the first half of the 1990s (2.2%). In the last five years of the 1990s, the rate of growth in real GDP increased to 3.9, with the last three years being over 4.3 percent per year. A five percent increase from 1999 to 2000 is the highest level of yearly increase since 1984. The recent upward trend (until the last two quarters) in economic growth has been accompanied by increases in the rates of growth of consumption spending, investment spending and exports. Productivity increases; decreases in unemployment, expansion in the labor force, and increases in the amount of capital have allowed real GDP to grow at faster rates. Yet during this same time period, consumers have reduced their savings.ConclusionAfter reviewing the unemployment, inflation and the GDP history of the last decade it is obvious why the United States economy has been ranked number one in the world. The economy has averaged a 5% or less unemployment rate, a 3.5% or less inflation rate and a GDP rate that has fluctuated from 2.2% to 5% throughout the nineties. The future outlook of the next decade is promising, however, many economists are skeptical when asked if this trend can continue at its current rate. References www.econedlink.orgwww.economicsameria.org...
