Lower division capstone IP 2 Essay Example | Topics and Well Written Essays - 500 words

Lower division capstone IP 2 - Essay Example tput of every industry and then takes away the intermediate inputs coming from other industries in order to come up with the residual value-added (Wells & Krugman, 2009). The income approach calculates the income gained by the several factors of production (Wells & Krugman, 2009). The last method is called the expenditures approach, which displays what is going on in all different types of spending all over the economy. This method is normally done every year (Wells & Krugman, 2009). While GDP can be determined in three different ways, the total value of the production, income and expenditure must be identical for all of these methods. In the case of the United States economy, the history of its GDP growth rate reveals erratic trends of highs and lows, particularly during the advent of the 2008 financial crisis and onwards. Based on the data gathered by Bureau of Economic Analysis (BEA), in 2011, the GDP growth rate has been observed to rise by 0.8% from its first two quarters of the year with a 2011 GDP of 2.5%. This data is an indicator of the growing potential of the United States despite the financial crisis in 2010 and the automobile industry crisis that cropped up recently. Additionally, in 2013, the Bureau of Economic Analysis, the United States economy gained a GDP of 3.2% in the final quarter of 2013 (BEA, 2013). This expansion has been attributed to several aspects of its economy. The United States has one of the most varied and most technologically advanced economies in the world. It embraces the industries of banking and finance, real estate, healthcare automobile, education, social assistance among ot hers, which contributes to more than 40 per cent of the United States’ GDP. The retail and wholesale industries also contribute to the 12 percent of the country’s GDP. As a leading center for all these services, the United States GDP growth rate is expected to growth in the succeeding years. Comparatively, between 2008, in which the global economic