in Economics What changes have you noticed recently about th

in Economics

What changes have you noticed recently about the US economy with respect to the World economy? How has this affected your life? What changes (if any) are you making to deal with the changes?

Solution

The most important change in US economy relative to rest of the world is a decline in real GDP growth rate.

Since real GDP is an indicator of standard of living, a lower real GDP growth rate lowers the standard of living. The consumers can no longer maintain the high standard of living as before.

To compensate for this, consumers will trim down their lifestyle, first and foremost by curtailing expenses on recreation, entertainment and non-necessity goods.