Gdp Usa

There are several ways to see if the United States economy is growing; some more accurate than others. The one way that is the most accurate way that we use in United States to measure our economy is measuring GDP (Gross Domestic Product.

Gross Domestic Product is determined when the market value of all goods and services sold within the United States over a set period of time. In the United States we measure GDP in 3-month increments called quarters. GDP is used to determine whether the economy is growing or declining versus the previous quarter. It can be used to measure the value of our country against others countries in the world.

Our GDP is affected by different roles in government that shape our past and current fiscal policy. The Department of Treasury is the main body of government that will manage and create the fiscal policy for the country. The office of Management and Budget will develop and analyze the fiscal policy. This department helps the Department of Treasury do research in regards to figuring out what the country needs. The office of the President still has some say so in the decisions that are made with regards to the fiscal policy. The President of the United States and make suggestions on any changes he or she feels needs to be changed based on the current country needs. Finally, there is a government accountability office that is responsible for auditing the fiscal policy that is created.

Taxes are one fiscal policy that affects employment that could result in positive and negative affects on the country. When taxes are increased, net income of employees are decreased resulting in less money spent into the economy in most cases. When taxes are decreased you will more then likely get the opposite affect depending on the climate of the economy. When taxes are raised it leads some companies to outsource their manufacturing to countries outside of the United States in order to maintain or increase profit without paying the increase in taxes. When this happens people are laid off due to lack of work and unemployment increase's causing a burden on the economy. When interest rates are lowered on corporations it can sometimes in provide an increase in the capitol of a company, which will allow a company to increase their investment spending. This can sometime help a company make more of one product that is selling well and also allow a company to hire more employees.

Changes in Government spending and taxes could have both positive and negative affects on the economy's production and employment. Government spending and taxes have a positive effect if used with the right balance. When there is less government spending and lower taxes it could stimulate companies to invest more money privately instead of using government funding and not using there own money. However, sometimes when there is not enough government spending and not enough