SPECIAL PROJECT VALUE LINE Research Paper Example | Topics and Well Written Essays - 500 words

SPECIAL PROJECT VALUE LINE - Research Paper Example Specifically, theses are the production approach, the expenditure approach, and the income approach. In my forecast, I focused on the real GDP as an indicator of economic growth in the US in 2015. Precisely, this type of the GDP examines a topic of interest to the public as everyone wants to understand the performance of the total goods or service. As an economic indicator, the GDP is imperative because it provides information about the size of the economy as well as its performance (Madigan,  2015). When the GDP experiences a growth rate, it indicates that the economy is in a healthy status. Explained broadly, an increase in the real GDP is a sign of an economic growth and predicts the possibility of increased employment and a decrease in the inflation rates. The strong economic growth as indicated in the trend of the GDP suggests that the US labor market will expand compared to the previous year. Specifically, the Wall Street Journal forecast that unemployment will decline from 5.6 to 5.2 percent by December 2015 compared to the same time in 2014 (Madigan,  2015). The tight labor market interprets to an increase in income rising from 1.7 percent to 2.6 percent in 2014 and 2015 respectively. If this prediction is correct, the US economy will experience the highest and fastest wage growth since 2008. Using three reliable international forecasting agencies, I obtained the average of the presented GDPs to determine the perceived performance of the US economy in 2015. The table below represents the quarterly GDPs from Wall Street Journal, the Conference Board, and the Well Fargo, US economic forecast (The Conference Board, 2015; The Wall Street Journal, 2015; Wells Fargo, U.S. Economic Forecast, 2015). As observed from the table, the three forecasting agencies predict an increase in the national real GDP. As seen from the average in the quarterly forecasts, the GDP will rise from 2.2 percent in the first quarter to 2.9% in