BUSN300 UNIT 2 IP Research Paper Example | Topics and Well Written Essays - 750 words - 1

BUSN300 UNIT 2 IP - Research Paper Example This paper will highlight the presentation of a new president of a local chamber of commerce in the United States addressing the expected GDP growth rate and give business leaders an idea of the outlook of business based on history and expected conditions. It will also highlight GDP trends, forecasts, statistics, determination and interpretation. Annual United States GDP in 2012 grew by 2.2 percent, as compared to a 1.8 percent increase posted in 2011 (BEA, 2012). The 2012 increase basically mirrored positive inputs from both residential and non residential fixed investments, expenditure on personal consumption and exports. Nevertheless, the GDP went down to 1.5 percent in the last quarter of 2012 as compared to the third quarter, denoting a decrease of 0.10 percent. According to the Bureau of Economic Analysis, GDP had gone up by 3.1 percent in quarter three (BEA, 2012). The fourth quarter’s drop in GDP was attributed to reduced contributions seen in exports, federal spending and private investment. However, increases in personal consumption expenditures, nonresidential fixed investments and reduced imports served to offset the drop in part. Business, educational, rental, financial and professional service account for a combined 40 percent of the United States GDP. Wholesale and retail businesses contribute 12 percen t. However, although the United States is a net food exporter because of using advanced technologies, agriculture only makes up for the GDP’s 1.5 percent. The economy’s total output can be determined in either of several ways available. The common ways include terms of income paid out, which sums up the different income forms that primary production factors receive (Michael & Alm, 1999). The other is in terms of subsequent expenditure arising from the income. In accounting for GDP, it is ensured that total production matches income which, in turn, matches expenditure. That implies that all goods produced within the economy