Bus305 Mod 3 Case Assisgnment

The St. Louis Economy Study

The first graph shows the Real Gross Domestic Product. Gross Domestic Product (GDP) is used to measure the worth of the dollar of all goods and services produced in the U.S. market in one year. The Gross Domestic Product is measured by addition of the expenditure in the consumer, investment (firms), government, and foreign sector that is exports minus the imports. Real GDP is the existing GDP divided by the GDP value deflator. The real GDP is one of the main indicators of economic performance (Watts, 2003).

From the graph the current status of GDP is positive growth. It indicates that the real GDP is growing at the rate of 4% early in the year. At the beginning of last year the country’s economy was growing at a slower rate of 2% as indicated in the GDP graph. The rate increased to the rate of 8% in the middle of the year which indicated economic growth. However, the rate decreased to 4%at the end of the year which indicated economic decline. In average the economy of last year grew approximately at the rate of 4.8% throughout the year and slowed down to 4% this year. According to the graph there has been rising trend of GDP for the past two years. This shows that there this positive economic growth (Public Policy Research Centre, 2010).

The second graph shows consumer price index. It’s used to measure the adjustment made in the overall prices of consumer goods and services such as food, transportation, education, clothing, etc. The prices of these goods and services are determined each month and change in percentage is reported as consumer price index (St. Louis Economic Growth Indicator, n. d).

The current status of CPI graph shows that there is an increase in the percentage change which is at the rate of 0.5%. This implies that there is economic growth. In the last years data, the graph shows that there was an increase in the first two months which was 0.6% high. In the following months a decrease in the percentage change was...