Real GDP (Y) can be decomposed into the sum of spending by consumers (C), firms (I), the government (G) and net exports (X-M). Y = C + I + G + NX. A common approach taken in exploring real GDP developments is to explore how each of these four spending components identified will develop in the near future. For example, if consumer confidence (an example of a forward looking indicator) is increasing, this is usually taken as a signal that C will be increasing at a 'healthy' growth rate in the near future. If consumer confidence is decreasing, then C is expected to be flat. Since the spending components feed into real GDP (go back to the circular flow diagram), the development of C gives some indication about near future developments in real GDP or economic growth. Thus, one can explore expected changes in C, I, G, and NX to get a handle on the expected real GDP growth for the next quarter or year. Your assignment is to develop a report that describes expectations for US RGDP in the short term (6 months to 1 year) and medium term (2 to 3 years). This type of macroeconomic outlook report is important and of interest to every type of business enterprise as it is the basic indicator of future output and input market conditions. Your report should be addressed to someone who has only a basic understanding of economics; thus, you should as part of your report, explain the definition of each of the spending components (an any other technical terms you use). You may use charts and graphs as appropriate. The finished report should be 3 to 5 pages, and include a Executive Summary of no more than 200 words. While you are free to use whatever references you want (please make sure that your report appropriately documents any resources)
JUST NEED SOME GUIDENCE OR OUTLINE
Real GDP (Y) can be decomposed into the sum of spending by consumers (C), firms (I), the government (G) and net exports (X-M). Y = C + I + G + NX. A common approach taken in exploring real GDP developments is to explore how each of these four spending components identified will develop in the near future. For example, if consumer confidence (an example of a forward looking indicator) is increasing, this is usually taken as a signal that C will be increasing at a 'healthy' growth rate in the near future. If consumer confidence is decreasing, then C is expected to be flat. Since the spending components feed into real GDP (go back to the circular flow diagram), the development of C gives some indication about near future developments in real GDP or economic growth. Thus, one can explore expected changes in C, I, G, and NX to get a handle on the expected real GDP growth for the next quarter or year. Your assignment is to develop a report that describes expectations for US RGDP in the short term (6 months to 1 year) and medium term (2 to 3 years). This type of macroeconomic outlook report is important and of interest to every type of business enterprise as it is the basic indicator of future output and input market conditions. Your report should be addressed to someone who has only a basic understanding of economics; thus, you should as part of your report, explain the definition of each of the spending components (an any other technical terms you use). You may use charts and graphs as appropriate. The finished report should be 3 to 5 pages, and include a Executive Summary of no more than 200 words. While you are free to use whatever references you want (please make sure that your report appropriately documents any resources)
JUST NEED SOME GUIDENCE OR OUTLINE
