Economic Growth

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I. MACROECONOMICS Issue or Problem:
Economic growth II. SUMMARY/Synopsis OF ARTICLE:
Economic growth has dropped to .1% in the Eurozone. After an 18 month recession, the countries began to show economic growth. However, while in the last period growth was at .3%, this period it has dropped. In order to increase grown, Europe’s central bank cut interest rates to just .25%. This drop in economic growth is different in the Eurozone countries. Weaker countries had to even taken bailout money. Some of the affects it had on citizens were large-scale job cuts, reduced wages and pensions, higher taxes and widespread changes to public services. Even more prominent countries, such as France and Germany, showed decreases in growth. One of the reasons a decrease in growth is happening in the Eurozone is because of a decrease in exports. Exports dropped to 1.5% in the third quarter. While there was a decrease in exports, some are saying that production is picking up and that there should be a gain soon.
1) Recession-a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
2) Contraction- the process of becoming smaller.
3) Interest Rates- the annual rate at which interest is paid: a percentage of the borrowed amount.
4) Debt- something, typically money, that is owed or due.
5) Unemployment- the failure to use all available economic resources to produce desired goods and services; the failure of the economy to fully employ its labor force.
6) Annualized- a rate of interest, inflation, or return on an investment recalculated as an annual rate.
7) Quarter- One fourth of the year.
8.) Period- the time in a business cycle.
9) Exports- goods and services produced in a nation and sold to buyers in other nations.
10) Sustained-…...

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