3Moving forward organizations have switch from defined-benefits to defined-contributions plans, employees bear more responsibility for making decisions about how much tosave. The U.S. economy is currently showing relatively slower growth than forecasted. The CDP, however, did show an increase of 2.4% in 2014 a slight increase from the 2.2% increase from 2013. The increase was primarily the results of increased consumer spending, increased business investment, increased exports, increase government spending, and increased residential fixed investment. These gains were partially offset by an increase in imports, (U.S. Department of Commerce Bureau of Economic Analysis, 2015). Currently the GDP in the United States is worth roughly 17947 billion dollars. The value of the United States represents 28.95 percent of the world’s economy. GDP in the United States averaged 6557.34 billion from 1960 to today all-time high of 17 947 Billion today from a record low of 543.30 Billion back in 1960. There has been a significant discussion regarding the United States savings rate, which have noted that, while savings are necessary and needed to finance investments, which can be both theoretically and practically possible. A country needs to have a high savings rate but to have relatively low or moderate investments and economic growth rates. It is possible for the
This Tutorial contains 2 Papers
Your organization's CEO is concerned that members of the strategic planning committee are not familiar with current economic thought and principles. The CEO has assigned you the task of developing an 875-word report to introduce some of these thoughts and principles. Use Chapters 1, 2, 3, 4, 5, 6 and 7 in Principles of Macroeconomics as your only source.
Explain the following information in your report to members of the strategic planning committee:
· How economists are both scientists and policymakers and what principles society uses to allocate its scarce resources
· Using the circular flow model, explain the flow of money and goods in an economy.
· How the economy coordinates society's independent economic actors
· A country's gross domestic product (GDP) and how it is defined and calculated
· How the consumer price index (CPI) is constructed and why it is an imperfect measurement of the cost of living
Format consistent with APA guidelines.