Database of the Bureau of Economic Analysis - Essay Example

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

It appears that the most significant growth takes place in the 4th quarter. That happened in 2009 and 2011, but certainly not in 2012. In 2010, the growth rates were somewhat evenly distributed in each of the four quarters.

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

The 2nd quarters of 2009 and 2010 showed the lowest growth rates. But in 2012, the lowest quarter turned out to be the 4th quarter.

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.

Because of the recent thrust of the Federal Reserve to provide stimulus funds for the attainment of the ideal of full employment, 2013 should have a much higher growth rate and lower unemployment rate. On a per-quarter basis, there is a 50% probability that the growth rate in the 2nd quarter will be higher than the first quarter. Since the 2nd quarter was the lowest in 2009 and 2010, lower than the first quarter in 2012, but higher in 2011 than the first quarter, the probability of having a lower GDP growth rate is 75%. The 3rd quarter will be higher than the 2nd quarter and most probably higher than the 1st quarter since this is what happened in the past four years. By the 4th quarter, assuming no major calamities will disturb business operations, USA real GDP should experience the highest growth rate so far since the time of the recession.

5. What will be the primary cause that will cause your prediction in the previous question to occur? Why?

First, it is because the Fed has been supportive of the need for more money supply. There is a determination to bring down the unemployment rate in the USA. The People have been complaining about the high unemployment rates and the performance of the Monetary Board in easing the financial difficulties of the country for several years now. Secondly, the government is more prepared to adjust to unfavorable climate changes. And thirdly, there has been news about improvements in the way the economic problems in Europe are being handled, e.g. the way Greece's economic crisis is being resolved. Europe is a major trading partner of the USA. Read More