Analysis of the GDP From 2015 and 2017, Essay Example

The RGDP of the US has significantly fluctuated in the last three years. As indicated, 2016 indicated one of the lowest phases with the rates staggering between 2 to 2.2% after a high ending rate in the last quarter of 2015. Perhaps this can be attributed to the active political activities that toppled the country’s economic stability since after the same year; the RGDP gradually resuscitated across 2017 as it recorded 2.3, 2.2, 3.3, and 3.5 in the Q1, Q2, Q3, and Q4 respectively in 2017. This can be observed in the below chart:

Chart 1.0: rate of RGDP changes from 2015 to 2018

The US economy has demonstrated trendy growth over the last few years. In 2017 alone in the previous quarter, it posted an estimated change of 2.3%, which indicated a relatively positive drive. Notably, this marked a progressive change despite the decline since World War II, whose RGDP staggered around 3%.

Ideally, economic growth and the realization of a better GDP require varied government efforts as a critical player to the economy. The government can adopt different policies depending on the prevailing situations to address possible inflation, unemployment, or the general decline in productivity of the nation through a tax cut, increased public spending manipulation of the interest rates, among other approaches. This has been observed in multiple situations, such as during the great depression and the COVID-19 era. The country experienced a steep economic decline due to the loss of jobs, business, and general inflation.

Succinctly, the RGDP is an ideal signifier of the economic performance often utilized by most countries. Despite the low annual average RGDP in the country, the US has tried to cushion its economy against potential crumbles over multiple occasions. This signifies that the government is a critical player in economic stability through various taxes, policies, and interest rates.