Economic Problems Essay Example

changes in economic activity around the economy's long-term growth trend. Each business cycle consists of four phases: expansion, peak, contraction, and trough.

This slide demonstrates the four phases of business cycles, which are characterized as unpredictable. Each cycle is unique in terms of duration and the magnitude of fluctuations around the economy's long-term growth pattern. The depiction starts from 1960 and continues onwards.

Six complete business cycles have occurred in the US economy. Please proceed to the next slide.

Five. Economists have identified several critical factors that determine the rate of economic growth in an economy.

These determinants of economic growth can be categorized into two main groups: One.

For details on the accessibility of economic resources and factors impacting productivity, please continue to the following slide.

6. The Recent Slowdown in Economic Growth in the U.S.

The United States has experienced a decline in its economic growth rate recently. In the past, the average annual growth rate was approximately 3.36%, with estimates ranging from 3% to 3.5% per year during the nineteenth century.

The growth rate appears to be declining, with an average annual economic growth of 4.43 percent in the 1960s decreasing to just 3 percent in the 1990s. Determining the causes of this slowdown is difficult due to potentially multiple influencing factors.

A list of the major factors economists have identified include the following: The first is a technology slowdown, second is labor force factors, third is saving and investment, and fourth is the composition of output, and regulation and public debt of the government. Please go to the next slide.

Check Your Understanding

Summary

We have now reached the end of this lesson.

Let’s examine what we have discussed so

far. Initially, we established the notion of economic growth, which signifies prosperity and the opportunity for enhancing our quality of life. Economists perceive economic growth as a continuous procedure. The primary indicator for measuring economic growth is alterations in real gross domestic product, commonly referred to as GDP.

We analyzed the variations in economic growth throughout time. It is widely known that all market-based economies have experienced periods of both growth and prosperity, as well as declines in production and incomes. These changes are commonly called business cycles, which refer to the unpredictable short-term fluctuations in economic activity compared to the long-term pattern of economic growth. Each business cycle consists of four stages: expansion, peak, contraction, and trough.

Firstly, economists have identified various factors that determine the rate of economic growth. These determinants can be categorized into two main groups: the availability of economic resources and productivity factors. Lastly, the lesson concluded with a discussion about the recent decline in growth.

During the 1960s, there was a gradual decline in the average annual growth rate to 4.43%. However, this further dropped to just 3% in the 1990s. The reasons behind this economic slowdown remain uncertain and could be attributed to multiple factors.