Macroeconomics is the part of economic theory, which regards the economic system as a whole: with all the key aggregates of the household issues, business, and government sectors. Originally, it entails all the measures of the total economy in its basis. According to McConnell and Brue, it is necessary to emphasize the following: “Two of the most critical questions in macroeconomics are: What determines the level of GDP, given a nation’s production capacity? What causes real GDP to rise in one period and to fall in another?” All the forecasts are generally given from the point of view of these issues.
The GDP of the United States of America had been growing every year starting from 1949 up to autumn 2008. The fact is that this indicator signifies the measure of the products and goods produced by the citizens of the USA. The increasing GDP signifies the fact that there is an expanding production base of the country observed. Makin, in his turn, states the following: “As a measure, GDP makes no distinction between products and services. Over time, American industry has become more service-based. In addition, the population of the US has grown. Therefore, increases in GDP are also a product of greater labor capacity.” It should be stated that in the past ten years, the GDP growth was measured up to 6.2 percent, and the lowest indicator was observed in 2001 (2.1%). Still, the world financial crisis made a surprise, revealing even lower results (chart below).
