Follow the steps below to obtain real-world information about GDP growth pattern from the Bureau of Economic Analysis to assess GDP current situation. Use your findings to answer the questions below.
Go to www.bea.gov (Links to an external site.)Links to an external site..
Click on the National tab (on the top left-hand side).
Click on Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables (Links to an external site.)Links to an external site. (on the left-hand side under subtitle Gross Domestic Product (GDP)).
Click on Begin Using the Data (found under GDP & Personal Income).
Click on SECTION 1: Domestic Product and Income.
Click on Table 1.1.1. Percent Change from Preceding Period in Real Gross Domestic Product (A) (Q).
To expand your search after you click on the Table, click on Modify on the top middle portion of the table above the results, then change the First Year to 2005 and Last Year to the current year, and then change the Series to Annual, and then click on Refresh Table. Note what happened before and after the recession of 2007–2008.
Also, explore other tables, particularly Table 1.1.2. and Table 1.1.4 to learn about changes in prices and how and why GDP changes.
For your initial post, answer one of the following questions.
What is the current GDP growth rate? Also, examine the trend of GDP growth over the past few years. What stage of the business cycle is the U.S. economy currently in given the trend of GDP growth?
What components of GDP tend to decline significantly during recessions (particularly during the 2008 recession), and what GDP components rise during expansion? In other words, what aspects of GDP are mostly affected when the economy slows down? and why?