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Data for the Classroom fromEd Dolan’s Econ Blog
http://dolanecon.blogspot.com/
US GDP: Growth for Q2 2011 Revised Upward, But
Still WeakPosted Sept. 29, 2011
Terms of Use: These slides are made available under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes
together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics, from BVT Publishers.
Posted Sept. 29, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
US GDP Growth Q2 2011
US GDP grew at an estimated 1.3% annual rate in Q2 2011
The January-March 2011 quarter was the 8th consecutive quarter of growth since the end of the recession that lasted from Dec 2007 to Jun 2009
The growth rate of 1.3% was a slight upward revision from the second estimate of 1.0 percent that was reported in August
About 2.5% growth of GDP is needed to keep unemployment from rising, when increases in the labor force and productivity are taken into account
Posted Sept. 29, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
Phases of the Business Cycle
According to standard business cycle terminology, the recession phase of the business cycle is the downward movement of GDP from its previous peak
The recovery phase is the upward movement from the trough (low point) of the recession and continues until GDP reaches its previous peak.
Once GDP moves above its previous peak, the expansion phase begins
Following this terminology, we see that the recovery, underway for two years, is not yet complete, and the economy has not yet entered the expansion phase of the cycle
Posted Sept. 29, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
Sources of US GDP Growth Q2 2011
Consumption accounted for about a third of the growth in Q2 2011
Investment accounted for 0.79 percentage points of growth, with strong business fixed investment helping to make up for weak residential investment
Federal government defense spending grew but was more than offset by continued decline of federal nondefense spending and state and local government spending
Net exports grew more strongly than previously reported, due to upward revision of exports and downward revision of imports
Table shows the contribution of each sector to the 1.34% total GDP growth in Q2, 2011
