1)
To compare the economic situation of the UK and the US I am going to use these five indicators : unemployment rate, consumer price index, gross domestic production, trade balance and public sector debt.
First unemployment rate is the percentage of the work force who have no job and are looking for employment. According to me this rate is a major sign of the economic situation. In the UK this rate equals to 7.7 percent in November 2010 whereas it equals to 9,6 percent in the US.
Then Consumer Price Index (CPI) is an essential indicator according to me. It produces monthly data on changes in the prices paid by consumers for a representative basket of goods and services. Therefore it can show the variation of the purchasing power of people. Moreover it can be a sign that the economy is growing due to an increasing demand. In October 2010 in the US it increases by 0.2 percent and it increases by 0.3 percent in the UK.
Gross Domestic Product is the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending plus the value of exports, minus the value of imports. I think it is a significant indicator to show the economic growth of a country. In the third quarter of 2010 GDP increased at an annual rate of 2.8 percent in the UK and at an annual rate of 2.0 percent in the US.
Trade balance is the difference between the monetary value of exports and imports of outputs in an economy over a certain period. In my mind it is an important indicator because it shows the relationship between a country and the rest of the world. The UK’s trade deficit declined to 13.23 billion dollar -according to the Office For National Statistics reported on the 9th of November 2010- and the USA’s one equals to- 44,0 billion dollar.
Finally Public sector debt is the debt owed by the government at any level such as local government or central government. In November 2010 in the UK