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Macroeconomics 5th Edition by Olivier Blanchard
Edition 5ISBN: 978-0132159869Macroeconomics 5th Edition by Olivier Blanchard
Edition 5ISBN: 978-0132159869 Exercise 2
S. postwar recessions
This question looks at the recessions over the past 40 years. To work this problem, first obtain quarterly data on U.S. output growth for the period 1960 to the most recent date from the Web site www.bea.gov. Table 1.1.1 presents the percent change in real gross domestic product. This data can be downloaded to a spreadsheet. Plot the quarterly GDP growth rates from 1960:1 to the latest observations. Did any quarters have negative growth Using the definition of a recession as two or more consecutive quarters of negative growth, answer the following questions.
a. How many recessions has the U.S. economy undergone since 1960, quarter 2
b. How many quarters has each recession lasted c. In terms of length and magnitude, which two recessions have been the most severe
This question looks at the recessions over the past 40 years. To work this problem, first obtain quarterly data on U.S. output growth for the period 1960 to the most recent date from the Web site www.bea.gov. Table 1.1.1 presents the percent change in real gross domestic product. This data can be downloaded to a spreadsheet. Plot the quarterly GDP growth rates from 1960:1 to the latest observations. Did any quarters have negative growth Using the definition of a recession as two or more consecutive quarters of negative growth, answer the following questions.
a. How many recessions has the U.S. economy undergone since 1960, quarter 2
b. How many quarters has each recession lasted c. In terms of length and magnitude, which two recessions have been the most severe
Explanation
Verified
Verified
Recession is temporary decline in economic activities or a significant fail in spending generally leads to recession.
After collecting the data from period 1960 to most recent date, the figure 1 is the graphical representation of collected data.
Figure-1
a)
After going through US economy data from 1960, quarter 2 US economy has 8 recessions, it started from the third quarter of 1960, then in 1969-70, 1973-75, 1980, early 1980s, early 1990s, early 2000s and the last one is Great recession in Dec 2007 to June 2009.
(b)
Recession in 1960 and last for 2.5 quarter, then in 1969-70 last for 3 quarter, 1973-75 last for 5 quarter, 1980 last for 1.5 quarter, early 1980s last for 5 quarter, early 1990s last for 2 quarter, and early 2000s last for 2 quarter and the last one is Great recession in Dec 2007 to June 2009 last for 6 quarter.
c)
According to length and magnitude recession in early 1990s from July 1990 to March 1991 and great recession from Dec 2007 to June 2009 have been the lengthiest recessions.
After collecting the data from period 1960 to most recent date, the figure 1 is the graphical representation of collected data.
Figure-1a)
After going through US economy data from 1960, quarter 2 US economy has 8 recessions, it started from the third quarter of 1960, then in 1969-70, 1973-75, 1980, early 1980s, early 1990s, early 2000s and the last one is Great recession in Dec 2007 to June 2009.
(b)
Recession in 1960 and last for 2.5 quarter, then in 1969-70 last for 3 quarter, 1973-75 last for 5 quarter, 1980 last for 1.5 quarter, early 1980s last for 5 quarter, early 1990s last for 2 quarter, and early 2000s last for 2 quarter and the last one is Great recession in Dec 2007 to June 2009 last for 6 quarter.
c)
According to length and magnitude recession in early 1990s from July 1990 to March 1991 and great recession from Dec 2007 to June 2009 have been the lengthiest recessions.
Macroeconomics 5th Edition by Olivier Blanchard
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