What is the economic status of the US now in 2007?

Answer 1

The U.S. economy as of 2007 is, overall, surprisingly healthy considering that GDP is at a high and healthy level, unemployment is at a perfectly healthy level, non-farm productivity has doubled in the last measured level compared to what it was expected to be, LEI has stayed the same and may actually point to slow economic growth which shows the stability of the economy in the near future, the trade deficit and trade balance has greatly improved and has dropped to a level that is lower than it is been in quite some time which is fantastic, and Inflation being the only unhealthy indicator is only a bit unhealthy and was expected to have risen from its previously healthy level to its unhealthy current level because with the rise in GDP combined with lowered interest rates brings much more money into peoples hands and in the system causing there to be increased prices to compete with the enlarged money supply thus leading to the increased and current unhealthy level of inflation. Yet, the rise of inflation to an unhealthy level is not too bad both when compared to past levels of inflation which were much higher and the fact that the trade off is that the other economic indicators are doing great especially GDP. Furthermore, it is good considering that because it can be contributed to the loss of the value of the dollar, we have had a resulting decrease in the trade deficit due to other nations buying more of our products at a cost that is much cheaper because their currency is worth much more compared top us and thus increasing our exports and creating more of a balance between exports and imports and decreasing the deficit to a much lower level than previous years.