("GDP report..." NYT) Which sector showed weakness in the third quarter GDP report due to high interest rates? housing market intellectual property investments consumer spending defense spending
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An article in the Wall Street Journal in early 2021 reported that "the economy contracted 3.5% last year, the largest decline since just after World War II." The article also reported that the change in private inventories contributed to the contraction. Source: Harriet Torry, "U.S. Economy Shrank in 2020 Despite Fourth-Quarter Growth," Wall Street Journal, January 28, 2021. 1. Is it likely that the article was reporting the decrease in nominal GDP or in real GDP? A. Nominal GDP, because changes in nominal GDP reflect changes in both the quantity and prices of goods and services produced in the economy and so are a better indicator of economic growth. B. Nominal GDP, because changes in nominal GDP measure changes in just the quantity of goods and services produced in the economy and so are a better indicator of economic growth. C. Real GDP, because changes in real GDP reflect changes in both the quantity and prices of goods and services produced in the economy and so are a better indicator of economic growth. D. Real GDP, because changes in real GDP measure changes in just the quantity of goods and services produced in the economy and so are a better indicator of economic growth. 2. What is inventory investment? Inventory investment refers to A. the accumulation of intermediate goods, such as aluminum or steel, used in the production process. B. changes in the stocks of goods that have been produced but not yet sold. C. the stocks of goods that have been produced and sold. D. firms' accumulation of capital goods, such as factories, office buildings, and machine tools. 3. If the change in private inventories contributed to the contraction, inventories must have A. Remained unchanged B. Decreased C. Increased
Crystal W.
In 2013, which sector did the U.S. government recognize as becoming a more essential part of the economy? Technology Consumer Discretionary Healthcare
Qudsiya A.
The Federal Reserve reported that household wealth decreased by $\$ 2.4$ trillion or $\$ 21,000$ per household in the third quarter of $2011 .$ This drop is the steepest since 2008 and the second consecutive quarterly drop. Foreclosures lowered household debt slightly but credit card debt increased. Many households are struggling to buy the essentials and spending on food has decreased. Separately, the Bureau of Economic Analysis reported that consumption expenditure increased by $\$ 39$ billion in the third quarter of 2011 Sources: The New American, December 11,2011 , and the Bureau of Economic Analysis What factors might explain the actual changes in consumption expenditure and wealth that occurred in the third quarter of 2011 ?
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