Go to the Bureau of Economic Analysis (Links to an external site.) (BEA) website
ID: 1131030 • Letter: G
Question
Go to the Bureau of Economic Analysis (Links to an external site.) (BEA) website and look at quarterly data from the last few years of the National Accounts. Can you make a decision of what part of the business cycle the U.S. economy is currently in? Why? What factors lead you to this conclusion? You may want to do additional research of sources to reach a conclusion. If so, please identify the sources that added to your analysis. I am including a sample chart for the components of Gross Domestic Product over the last couple years for reference.
Post your response, and then read and reply to classmates' posts. i need a typed answer.
Table 1.1.5. Gross Domestic Product 14,000 12,000 10,000 8,000 o 6,000 4,000 2,000 -2,000 2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 2016-Q2 2016-Q3 2016-Q4 2015-Q2 2015-03 2015-04 2016-01 2016-02 2016-Q3 201 Source: U.S. Bureau of Economic Analysis Personal consumption expenditures Gross private domestic investment Net exports of goods and services Government consumption expenditures and gross investmentExplanation / Answer
The quarterly data from the last few years of the National Accounts depict that the economy is currently operating in the recovery mode of the business cycle. This is because most of the economic variables after facing a decline in value during 2007-08 recession are now reviving to their original values, for instance, consumption is increasing, investment has increased in the economy, unemployment rate has declined, growth rate of Gross Domestic Product has increased, inflation rate is increasing because of increase in aggregate demand of the economy. Thus, the economy is operating near its potential level and thus is in the recovery phase of the business cycle.
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