There are many factors in our economy that have an impact on the U.S. GDP. GDP stands for Gross Domestic Product and it measures the value of the amount of goods and services produced in a country annually. Aspects in our economy have the potential to impact our GDP dramatically. They control prices and values of each good and each service, therefore the GDP can rise or fall very easily according to these aspects. Such aspects of our economy that control our GDP are the law of demand, stock exchange activity, and the Federal Reserve System.
The law of demand determines how much the people want and are willing to pay for a good or service. The law of demand says that the lower prices go, the more people will want. Since the GDP measures how much value ther
This is where the Federal Reserve System comes in. The Federal Reserve is a national banking network They do a number of things in order to try and control the money supply. If there is too much money out in the country, its value will decrease. Therefore, making the GDP drop dramatically. The Federal Reserve System is in control of the nation’s money supply, and it is headed by Alan Greenspan. Since the Fed is in charge of our money supply, they control how much the money is worth, and how much there is of it. Therefore, the GDP is affected, because the more money there is out, the lower the value of our GDP.
Another aspect that has the potential to inflate our GDP is the stock exchange and the activity that comes with it. By looking at the stock exch
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