1) What trends in real GDP have occurred in the time period shown in the BEA release highlights document?

2. What time period shown in the document experienced the most significant growth?

3. What time period shown in the document experienced the least amount of growth?

4. Based on the data you have researched, what do you project real GDP will do during the duration of this year? Be specific in your answer.

 

Answer:

Question 1

According to BEA release highlights document, real GDP has increased by 2.9 percent during the time period shown (third quarter of 2016).

This increase in real GDP was on back of rise in consumer spending especially on services like healthcare, utilities, and also due to increased spending on durable goods.

Apart from this exports have also increased.

In second quarter of 2016, real GDP has increased by 1.4 percent.

Thus, an upward trend with respect to change in real GDP has been witnessed.

Question 2

According to BEA release highlights document, 3rd quarter of 2014 has witnessed the most significant growth. During this time period, real GDP has increased by around 5 percent.

Question 3

According to BEA release highlights document, 1st quarter of 2014 has witnessed the least amount of growth. During this time period, real GDP has decreased by around 1 percent.

Question 4

Quarterly data with respect to change in real GDP pertaining to year 2016 shows that real GDP has been increasing each quarter.

Apart from this, real disposable income is also increasing in each quarter and price level has remained stable.

All this reflect stable and growing economy.

So, in our opinion, projected real GDP will increase or rise during the duration of this year