Relational Analysis of US Macroeconomic Factors: Marketing Research Paper

Relational Analysis of US Macroeconomic Factors
Student’s Name:
Institution:
Professor:
Unit Name & Number:
Date of Submission:
Relational analysis of US macroeconomic factors
Introduction
The United States is regarded as the biggest economy globally with the highest value of Gross National Product (GDP). The unemployment rate has been consistently low over time, while the inflation rate has been kept low. Consumer confidence has led to increased private spending. The economic growth has been declining due to the adverse effects of the Covid-19 pandemic, though; it is expected to rebound next year. Besides, the political rhetoric in the country has also had adverse effects on the economic activities. The study seeks to show a pair-wise relational comparison between economic indicators: GDP Growth, Inflation rate, External Debt, and Unemployment rate. GDP Growth rate variable is paired with the rest of the variables, and the relational comparison is determined. First, the independent variables are plotted as shown by the graphs represented below, and after that, the relationships are shown on a single graph consecutively:
Figure 1: A graph of External debt stocks (% of GNI)
Source: author using E-views 10 software
The above graph represents the US's external debt stocks, as measured as the percentage of the GNI. The graph shows an upward trend, i.e., it has been rising over time. That indicates more external borrowing to plug the domestic fiscal deficit occasioned by declining domestic income from taxation.
Figure 2: A graph of GDP Rate
Source: author using E-views 10 software
The above graph depicts the economic growth rate in the United States from 1960 to 2019. The trend of the curve is continuously fluctuating during the study time. The economic activity of the US changes over time. According to the graph, the economic growth rate has been volatile over time. The US economy is ranked as the biggest economic powerhouse worldwide. It is much affected by global events since it borrows much from the global partners to fund domestic budgets.
Figure 3: A graph of the Unemployment rate
Source: author using E-views 10 software
Based on the above graph, it can be concluded that the unemployment rate in the US is ever-changing. As depicted above, the unemployment rate has been declining since 2010. As expected, and with adverse effects of the Covid-19 pandemic, more Americans have filed for unemployment claims. Though the curve is flattening, the prevailing conditions are expected to persist in the short-term. It might also be fueled by current political rhetoric being seen in the American people's history since time memorial. Robert (1977) states that unanticipated money supply growth will have a negative impact on the unemployment rate.
Figure 4: Relationship between the economic growth rate and unemployment rate in the US
Source: author using E-views 10 software
The above graph represents the relationship between the GDP rate and the unemployment rate in the US. As the economic growth rate increases, the unemployment rate decreases, and vice versa. That indicates that as the economy expands, it employs more people, and fewer remain unemployed. Though some sections of the ...