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Cheryl M., Essay Queen Staff - February 26, 2017
Global energy sources are one of the most hotly debated issues in our country. While some people argue in favor of natural energy sources like wind and water power, there is still a market for fossil fuels. Regardless of which energy source is preferred, a large portion of our GDP accounts for energy representation. The economy and energy representation have an interesting relationship in this nation; generally, a large increase in the price of energy sources have indicated a troubled economy. At the same time, a troubled economy leads to high prices; it’s difficult to determine the cause and effect in this situation. According to the Institute for Energy Research, total energy expenditures account for 8% of the total GDP (IER, 2010)...
GDP, Economic Cycles, and Macroeconomic Measurement
Write a paper of no more than 1,050 words on GDP, economic cycles, and macroeconomic measurements. Begin by assessing the extent of energy representation in the GDP. Think of energy in terms of input into the U.S. economy and business cycle fluctuations and how different sectors of the economy are affected. There are many excellent examples of the immediate effect of energy on the economy. The oil shocks of the 1970’s is an example.
• What are the components of GDP, and how does energy consumption enter each of these components? How would changes in energy prices, such as oil price shocks, possibly affect GDP growth? Please explain the related impacts on inflation and unemployment.