1. GDP Data Analysis Locate current data for GDP for the U.S. (Go to the Bureau
ID: 1231973 • Letter: 1
Question
1. GDP Data AnalysisLocate current data for GDP for the U.S. (Go to the Bureau of Economic Analysis Web site. Click on Interactive Data Tables, then National Income and Product Accounts, and then Frequently Requested NIPA Tables to get to Table 1.1.1). What are the annual growth rates for the U.S. economy over the last 5 – 10 years? Has GDP been growing or declining over this time-frame? Explain what factors might have caused GDP to increase or decrease over this time-frame.
Next, what are the quarterly growth rates (annualized) for the U.S. economy for the last six quarters? What trends do you notice in these numbers? Does anything surprise you? Comment on GDP growth for the different components of GDP (C, I, G, and Xn) over this time frame?
Website::www.bea.gov
Explanation / Answer
Annual growth rate in 2000 was 4.1, and decreased in 2001. It grew slowly until 2004 when it started to decline again, becoming negative in 2008, reaching -3.5 in 2009, and has been growing slowly since. The decrease in 2001-2002 was probably due to decreased consumer spending post 9/11. The decrease beginning in 2004 and ending in 2009 coincide with a recession worsened by the financial crisis.
Quarterly growth rates were 2.5, 2.3, 0.4, 1.3, 1.8, and 3.0 for the last 6 quarters. The trend is a decline followed by a slow increase, the low point corresponding with the first quarter of 2011. The growth for the different components generally follow the overall growth rates, however, there is a lag in the I component, a decrease of 7.1% in Q4 2010 was followed by an overall growth rate of 0.4 in Q1 2011. Government expenditures have also been decreasing for the periods corresponding to increases in growth rates.
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