Question

7. One convenient source of up-to-date U.S. macroeconomic data is the Federal Reserve Bank of St. Louis. It has a monthly publication, National Economic Trends, which summarizes these data. One important graph that this publication always presents in front (either page 4 or 5) is one on the movements of Real GDP, as shown below. Study the graph and its title carefully; note that it shows the annual %-change in U.S. Real GDP (GDP measures total production). Focus on the portions of the graph for 1993 and 2000, where the graph declines. Does this mean that real GDP fell in 1993 and in 2000? Explain your answer clearly.

Answer 1

After studying the graph that focuses on the portion of 1993 and 2000 where it declines it might not mean that the real GDP fell in 1993 and 2000. Although the graph decline, we cannot say that the real GDP decline it might some other issues that may affect the graph.

The U.S. macroeconomic data is the Federal Reserve Bank of St. Louis provides monthly publication, National Economic Trends, which summarizes these data by which it is the positive point that reflects the real GDP and by this time to time surveys, reports have been generated so that they can know the real GDP and how much they will improve in what other parameters so that they can work on that parameters.