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?
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.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from CLEP Social Sciences and History: Study Guide & Test PrepChapter 59 / Lesson 2