Gross Domestic Product Activity Use The Week 3 GDP Activity

Gross Domestic Product Activityuse Theweek 3 Gdp Activity Template Do

Use the Week 3 GDP Activity Template [DOC] to complete your activity before uploading it to the submission area. Instructions You may use Google or the Strayer library page, Statistics, Surveys and Government Resources, to research the GDP as you complete the following: Define GDP in your own words. Report the current GDP in trillions of dollars. Report the current federal debt in trillions of dollars. Report the outlays for the bottom line of the current (last) budget approved by Congress (surplus or shortage). Report the revenues for the bottom line of the current (last) budget approved by Congress (surplus or shortage). Report the deficit for the bottom line of the current (last) budget approved by Congress (surplus or shortage). Report the debt held by the public for the bottom line of the current (last) budget approved by Congress (surplus or shortage). Discuss the conclusions drawn from the numbers collected and provide insight about the impact of the numbers on the American economy in a response that is at least five sentences in length. Note: This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions. please use the template in attached.

Paper For Above instruction

The Gross Domestic Product (GDP) is a fundamental indicator used to measure the economic performance of a country. It represents the total monetary value of all final goods and services produced within a nation's borders over a specific period, typically a year. GDP encompasses consumer spending, business investments, government spending, and net exports (exports minus imports). It provides insights into the economic health and growth trajectory of a country, influencing policy decisions, investment strategies, and fiscal planning.

As of the most recent data, the United States' current GDP stands at approximately $25.3 trillion. This figure reflects the expansive and diverse economic activities across sectors such as technology, healthcare, manufacturing, and services. The substantial GDP indicates a highly developed economy with significant influence on global markets and international trade. The GDP growth rate, economic stability, and productivity changes are crucial metrics publicized by government agencies like the Bureau of Economic Analysis (BEA) and help policymakers formulate strategies to sustain growth.

The federal debt of the United States is currently about $31.4 trillion. This enormous debt accumulates from continuous budget deficits, where government expenditures exceed revenues. The federal debt is financed through Treasury securities, which are purchased by investors and foreign governments. A high level of national debt can pose risks such as increased interest costs and reduced fiscal flexibility, impacting economic stability and future generations' financial health.

The last approved federal budget revealed an outlay of around $6.8 trillion, representing government spending across various sectors, including defense, social security, healthcare, and infrastructure. In contrast, the total revenue for the same period was approximately $4.9 trillion, resulting in a budget deficit of about $1.9 trillion. This deficit indicates that the government spent more than it collected, which contributes to the growth of the national debt. Budget deficits are often justified by increased spending during economic downturns or investments in long-term growth initiatives but can lead to concerns about fiscal sustainability if persistent.

Furthermore, the debt held by the public, which excludes intra-governmental holdings, currently totals approximately $24 trillion. This figure represents the portion of the national debt available to external investors, including individuals, corporations, and foreign governments. A rising debt held by the public influences bond markets, interest rates, and the overall economic outlook, especially if it approaches levels that threaten fiscal stability.

From analyzing these numbers, several conclusions emerge about the current state of the American economy. The large GDP suggests a robust and diverse economic base capable of generating substantial output; however, the high federal debt and persistent budget deficits pose significant challenges. The substantial debt levels can lead to higher interest payments, potentially diverting funds from essential programs or investments. The budget surplus or deficit indicates ongoing fiscal policy struggles—whether the government needs to adjust spending or increase revenues through taxation. In the long term, sustained deficits and increasing debt may undermine economic growth, increase inflationary pressures, and reduce the country's financial sovereignty. Hence, policymakers should focus on strategies to balance growth with fiscal responsibility to ensure sustainable economic health.

References

• Board of Governors of the Federal Reserve System. (2023). Federal Reserve Economic Data (FRED). https://fred.stlouisfed.org
• Bureau of Economic Analysis. (2023). National Income and Product Accounts. https://www.bea.gov
• Congressional Budget Office. (2023). The Budget and Economic Outlook. https://www.cbo.gov
• International Monetary Fund. (2023). World Economic Outlook. https://www.imf.org
• U.S. Department of the Treasury. (2023). The Debt to the Penny and Who Holds It. https://fiscaldata.treasury.gov
• Stiglitz, J. E. (2019). Economics of the Public Sector. W. W. Norton & Company.
• Mankiw, N. G. (2021). Principles of Economics. Cengage Learning.
• Krugman, P., & Wells, R. (2020). Economics. W. W. Norton & Company.
• OECD. (2022). Economic Outlook. https://www.oecd.org
• Schiller, R. J. (2020). Financial Markets and the Real Economy. Princeton University Press.