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. Annual Rates: 2001: 1.1, 2002: 1.8, 2003: 2.5, 2004: 3.6, 2005: 3.1, 2006: 2.7, 2007: 1.9, 2008: 0.0, 2009: -2.6, 2010: 2.9. The 2.7 increase in 2006 slowly declined to a -2.6% change in 2009 and 2.9% increase in 2010.Up until 2009 the rates seemed to slowly decline and in 2010 they began to rise again. Some factors in causing the GDP to decline could be the war in Afghanistan and Iraq, gas prices soaring in 2008. Then with the economic situation in 2009 more people, that is the ones that have jobs were holding onto their money instead of spending it.
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? Quarterly Growth Rates:2009 III: 1.6, 2009 IV: 5.0, 2010 I: 3.7, 2010 II: 1.7, 2010 III: 2.6, 2010 IV: 3.1. The quarterly rates for the last 6 quarters start at a 1.6% percent increase from the previous quarter and slowly increasing every year at a small percentage. On average, based on these figures, it seems the percent change will increase for two quarters then the amount of increase will decline over the next two quarters. Then they repeat. Not really surprised by theses numbers. The fourth quarter is high due to the holidays. Then with the first quarter consumers using their gift card to purchase items. While using their gift cards we are taking advantage of the sales the retailers are offering and making other purchases as well. Consumption (C): The numbers vary from a high of 2.0 to a low of 0.9. During this time frame, good and nondurable were having the biggest impact. Investment (I): The numbers from 2009...
Please join StudyMode to read the full document