Real GDP - Essay Example

Free

Extract of sample
Real GDP

There is the suggestion that the GDP downward trend has recently reversed and is increasing somewhat, since real quarterly GDP growth reached its minimum point of -6.4% during the first quarter of 2009 and went up both in the second and third quarter of 2009.Over the last few years, although there are quarterly fluctuations, there is a general downward GDP trend. Looking at annual real GDP, one can see a downward trend from 2.7% in 2006 to a slightly lower 2.1% in 2007 to the almost flat growth of .4% in 2008.The third quarter actually went into positive territory at 2.8% for the first time since the second quarter of 2008.One event that has likely contributed to the general downward trend in real GDP is the decline in housing prices, or the bursting of the housing bubble. According to the Case-Shiller housing index (Standard and Poor's, 2009), housing prices peaked in the second quarter of 2006 and declined thereafter until first quarter 2009. One direct consequence of declining home values is a decline in household wealth, which will likely lead consumers to spend less, since having less money will translate to spending less money. Furthermore, if declining home values lead to default and foreclosures, those consumers will have even less money available for spending. Given that according to the 2008 real GDP figures, consumption is 70% of GDP (U.S. Department of Commerce, 2009), lower consumption will mean lower GDP ...
Download paper

Summary

There is the suggestion that the GDP downward trend has recently reversed and is increasing somewhat, since real quarterly GDP growth reached its minimum point of -6.4% during the first quarter of 2009 and went up both in the second and third quarter of 2009…
Author : frodriguez
Download 0

Related Essays

spss work and analysis
The complete data is fed through MS Excel and converted to SPSS 16.0. Suitable tables are presented depicting the influence of each variable on unemployment. Regression Analysis: The regression is measure of functional relationship between a dependent variable and one or more independent variable(s). Here in this study, we consider the unemployment as dependent variable and the other variables such as real GDP, Net Export, investment and consumption as independent variables individually since the unemployment depends on all the other influencing and independent variables. The data is analyzed...
4 pages (1004 words) Coursework
Balance in the Administration of Justice Security Paper
This usually holds true too in other nations. They have their own ways of educating and updating their citizens of the current plans and implements. This is for the purpose of ensuring that the government is functioning for the service of the people, to uphold their rights and secure their territories....
7 pages (1757 words) Essay
Organizational Behavior: problems which come up every day
Organizational Behavior is studied to understand what team work means, unless the employees gel together as a unit no organization can ever prosper. Here is when organizational behavior comes handy, it is all about learning about yourself and the people working with you and this statement is from the perspective of an Entrepreneur. The same also gives a very good opportunity to become familiar with the team of colleagues; this is very helpful in accomplishing future projects. For the topic to be understood, a comprehensive understanding of what an Organization means is also requires, an...
3 pages (753 words) Essay
Expedia Internet Marketing Plan
Chairman Barry Diller controls about 60% of the company." This paper serves as a complete marketing plan for the Internet traveling company Expedia. The information contained in this report is designed to help an individual gain a thorough understanding of the company's current standing and situation, as well as to gain a good idea of their opportunities and threats for the future. In addition, internal components to the company are discussed. The purpose of this paper is to include and/or explain a variety of components related to Expedia.
17 pages (4267 words) Research Paper
Immigration personal letter
For awhile I thought I wasn't going to be able to make it in the United States. When I first came to the U.S., I had little money, was without my nuclear family, and didn't really speak English as well as I would have liked....
4 pages (1004 words) Essay
forecast analysis
Therefore, using the finding for Merica 1, these parameters are tightly fitted to the regression line, besides; the relationship is positive and strongly related. For that reason, in every real GDP forecasted, time and average price are strongly and positively affecting the real GDP and vice-versa....
2 pages (502 words) Essay
SPECIAL PROJECT VALUE LINE
Specifically, theses are the production approach, the expenditure approach, and the income approach....
2 pages (502 words) Research Paper
Got a tricky question? Receive an answer from students like you! Try us!