Business Project

By William Young

  • 2001

    Inflation: 1.55%
    CCI: 110
    CPI: 177.1
    GDP: 10.62T
    GDP per capita: 37,241
    Unemployment: 4.2%
    Interest Rate: 5% Business Cycle: The economy peaked in 2001, but there was a giant drop in CCI between 2001 and 2002, likely due to the dot com bubble. Monetary Policies: In 2001, interest rates were high. There was a high rate of inflation, and slowing growth of the economy. Consumers were still buying a lot though. Fiscal Policies: Taxes were soon lowered, due to a small recession.

  • 2002

    Inflation: 2.38%
    CCI: 82
    CPI: 179.9
    GDP: 10.92T
    GDP Per capita: 38,113
    Unemployment Rate: 5.7%
    Interest rate 4.25%
    Business cycle: Consumer spending dipped quite a bit, and the economy was quite bad. Monetary Policy: Luckily, the government made effective use of monetary policy to make sure that the recession didn't get too bad. Fiscal Policy: The government reduced taxes to help everyday people, but this resulted in a 157 Billion dollar deficit due to this .

  • 2003

    Inflation: 1.88%
    CCI: 73
    CPI: 184
    GDP: 11.51 T
    GDP Per Capita: 39,591
    Unemployment rate: 5.80%
    Interest rate - 4%
    Business cycles: Consumer Confidence was down, due to the recession. Monetary Policy: The economy was back. In November, the government announced that the recession had ended. the GDP went up significantly. Fiscal Policy: Interest rates decreased.

  • 2004

    Inflation: 3.26%
    CCI: 90
    CPI: 188.9
    GDP: 12.27T
    GDP Per Capita: 41,838
    Unemployment Rates: 5.70%
    Interest rate: 5.25% Business Cycle: Business started to rebound. Consumer confidence was increasing. Monetary Policy: Interest rates and unemployment rates increased, despite a large jump in GDP. Fiscal Policy: Taxes were quite low.

  • 2005

    Inflation: 3.42%
    CCI: 95
    CPI: 195.3
    GDP: 13.09 T
    GDP Per Capita: 44,128
    Unemployment: 5.30%
    Interest Rates: 7.25% Business Cycles: Consumer confidence is still slowly rising, and the GDP per capita is too. Life is good for most Americans. Monetary Policy: Interest Rates rose dramatacaly though. This was the Feds response to economic strength. Fiscal Policy: The debt grew, due to abnegation of some important issues. The GDP still increased, but the debt is bigger.

  • 2006

    Inflation: 2.54%
    CCI: 98
    CPI: 201.6
    GDP: 13.86 T
    GDP Per Capita: 46,351
    Unemployment: 4.70%
    Interest Rates: 8.25% Business Cycles: Business was doing very well. It was a great time to buy in real estate, and everything seemed too good to be true. Monetary policy: The inflation rate is very low, and Interest rates are high; signs of prosperity. Fiscal Policy: There are tax cuts for the wealthy, and taxes for lower classes are harder; leads to the student debt problems we see today.

  • 2007

    Inflation: 4.08%
    CCI: 84
    CPI: 207.3
    GDP: 14.48 T
    GDP Per Capita: 47,954
    Unemployment: 4.60%
    Interest Rates: 7.5%
    Business Cycles:In the beginning of 2007, everything is great. By the end, however, the CCI has fallen considerably. There is an overall economic slowdown.
    Monetary Policy:Taxes were still quite high. People thought it was a great time to invest. Interest Rates were high, which meant less people borrowing money.
    Fiscal Policy:Government started spending more to bost the economy.