Macroeconomic Analysis

Historical Macroeconomic Analysis

In order to assess the growth of an economy, it is important to examine the growth of that economy’s real Gross Domestic Product (GDP). Real GDP is an inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Currently the U.S. is undergoing a recession so it is necessary to observe the history of recessions and how United States’ economy has recovered. The 2007 recession was started by the collapse of the housing market. Because nobody could sell real estate companies were in jeopardy and some went out of business. Then, bank collapses caused a sort of public panic. The early 2000s recession, caused by the collapse of the dot.com bubble, corporate scandals, deflation and 9/11, lasted eight months but GDP fell less than 0.2 percent. The 1990-1991 recession was shorter, lasting three quarters, while output fell 1.3 percent. This recession was caused by different adverse financial stimuli on the economic environment of the early 90s United States. The list goes on but no matter how CIA committee ultimately looks at the current period, it is likely that the United States economy has survived worse.

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Apple is in the personal computer production industry and one of the major economic factors that affect it is consumer spending. Consumer spending is good and services bought by households in the satisfaction of their needs and wants. It includes non-durables such as food, semi-durables such as clothing, and durables such as refrigerators. Consumer spending imperative to the United States economy, it accounts for 70% of the economy, and is seen as a defense against recession. Before the latest recession, consumer spending was at a steady growth. In the third quarter of 2008, consumer spending declined 3.7%, the first decline in consumer spending since 1991. The leading cause of the decline is rising energy costs, a volatile stock market, and...