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Summarize current and projected trends in the economy, with regard to GDP growth, unemployment,...

Question:

Summarize current and projected trends in the economy, with regard to GDP growth, unemployment, and inflation. How should you use this information to make personal, financial, and career planning decisions?

Future Trends

Economic trends can change dramatically over one's career. Countries can become wealthier, like Hong Kong, or poorer, like Venezuela. Demographic trends offer a much more stable outlook into the future, as birth rates tend to be much more predictable than political and economic change.

Answer and Explanation:

Current trends in the economy

GDP growth: 0.3%, which fell dramatically based on the economic lockdown in response to COVID19

Unemployment: 14.7$, which rose dramatically based on the economic lockdown in response to COVID19.

Inflation: 0.3%, which fell primarily due to energy prices.

There really aren't any projected trends as there is much uncertainty with respect to how the economy will recover in the future once the effect of the pandemic has filtered through the economy.

Personal, financial and career decisions usually have a 40-45 year time horizon, as you make such decisions between the ages of 20-25 until the age of 65. It probably makes more sense to base such decisions on demographic trends than economic trends. 45 years ago, in 1975, the world was significantly different than today. In 1975, Venezuela was the wealthiest country in Latin America, with a per capita GDP rivaling Hong Kong's. In 1975, the internet, personal computing and e-commerce were in their embryonic stages. Today, Zuckerberg, Gates and Bezos are billionaires due to these industries.


Learn more about this topic:

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Overview of the Gross Domestic Product

from CLEP Social Sciences and History: Study Guide & Test Prep

Chapter 59 / Lesson 2
4.6K

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