U.S. Microeconomic Report


America has an estimate of over $ 15 trillion gross domestic products (GDP) in 2011. America is wealthy with enough natural resources, high productivity and well developed infrastructures. America has a lot of manufacturing industries, which increase the productivity of the country. The increase in GDP has led to emergency of new investors. The new investors have created job opportunities reducing the unemployment rate. Many college graduates have been observed by the manufacturing companies and private organization. The increased employment rate has led to increase in government revenue. The revenue increases as a result of tax contribution by employed people and private investors. Increase of foreign investor in America has led to market enlargement leading to decrease in the inflation rate. America had a favorable economy for the last 11 years.

Gross Domestic Products

Americas GDP had been on an increase since 2000 up 2011 except in 2009 when it experienced a decrease of 352 followed by a favorable increase in 2010 and 2011. In 2000, it had a gross domestic product total of 6,830.4 in 2001 had 7,148.8, in 2003 had 7,439.2, and in 2004, it had 8,240.6. The rate increased up to 2008 when it had 10,035.5. In 2009, America had a decrease of GDP. It decreased from 10,034.5 in 2008 to 9,866.1 in 2009. The number increased in 2010 to 10,225.5 and 10,722.6 in 2011.  The increase in GDP is marked by an increase in gross private investment and decrease in personal consumption expenditures. The number of private domestic investors increases each year as from 2000 due to favorable trading environment (Gavin, 2011).

Interest Rate

From 2000 to 2011, the interest rate changes with either an increases or decrease (Charles, 2011). Different departments have different interest rates. Interest in treasury securities decreased from 2000 to 2004. After 2005, the interest rate increased for two years (2005 and 2006) then decreased from 2007 to 2011. The same occurred in consultant maturities interest rate. Corporate bonds interest rate decreased slightly from 2000 to 2011. The municipal bonds interest rate decreased from 2000 to 2011. In 2000, the rate was 5.77 while in 2011, it was 4.29. New home mortgage and prime bank rate interest also decreased from 2000 to 2011. Prime bank had an interest rate of 5.73 in 2000, 3.4 in 2002, and 1.17 in 2002 and 0 rates from 2003 to 2011. Federal funds interest rate also changed yearly from 2000 to 2011. In 2000, the rate was 6.24 while in 2011 was 0.10 almost 98 % decrease.


The rate of unemployment changes yearly with either an increase or a decrease. As from 2000 to 2011, the number of unemployed male remained little than the unemployed female. The number of unemployed White Americans is significantly low than unemployed Black American and other ethnic groups. The rate of unemployment rose in 2009 and 2010. It was 5.8 % in 2008 with 6.1 male and 5.4 employed female. The rate rose to 9.3 % in 2009 and 9.6 % in 2010. The rate decreased in 2011 to 8.9 %. The increase in the unemployment rate was marked by the decrease in GDP (Gavin, 2011).


The rate of inflation also changes yearly as from 2000 to 2011. In 2000, America had high inflation rate with $ 50.7 trillion as debt which represented more than 3.5 times of the GDP. In 2010, the domestic financial asset in America was $ 131 trillion and a liability of $ 106 trillion. The treasury obtained a negative interest rate on government debt outpaced by the inflation rate (Charles, 2011).


In conclusion, GDP, unemployment, inflation and interest rate have affected each other. The increase of one element leads to increase of others and vice versa. Increased GDP leads to increase in the employment rate decrease in the inflation rate, and increased interest rate. The government of America should work to increase productivity of industries.

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