The Impact of Increasing Import Prices With Respect to Economic Research Paper

The Impact of Increasing Import Prices With Respect to Economic Variables - seek Paper ExampleAt current market prices, the GDP is at its upliftedest during the year 2004 whereas it is at its lowest during the year 2001. During 2004, the US economy experienced consonant growth with almost over 4%, on average, growth rates during each quarter. This was mainly due to the strong demand created through caper spending, the arena which witnessed almost double-digit growth during the completion whereas consumer spending was increasing too i.e. it showed an improvement of more than 4% during the year. Similarly, new jobs were created and the employment level fell sharply which not only stimulated spending but also increased the income level of individuals. Similarly, an increase in consumer spending resultantly caused an increase in the business sector when the business expansion was witnessed as it has been discussed earlier. However, what is also important to discuss, here is the fac t that inflation during this period was at high level i.e. the current price level was high therefore the GDP at current market prices was at its highest? Similarly, in the year 2001, GDP at current market prices was lowest because the US was prepare by the terrorist attacks on 9/11 which significantly damaged its economy as most of its stock exchanges closed down for a substantial period of time. Secondly, the price level was relatively at a lower level as compared to the give year i.e. 2001 was just one year after the base year of 2000 therefore it was at the lowest level since at the base price GDP growth rate was around 6 7% whereas it showed invalidating growth from 2000 to 2001 at current market price level.