3. What is an economic recession? Examine the first table below and explain why the NBER recession indicator is not particularly useful. Then, using the conventional indicator discussed in class, identify all recessionary periods. [Hint: According to conventional estimates, an economy is considered to be in a recession if it experiences two consecutive quarters of negative growth in real GDP per capita.] Quarters DATE fredgraph Growth Rate (Real GDP per capita) Conventional Indicator NBER Indicator 1965-01-01 8.46251 0 1965-04-01 3.93674 ° 1965-07-01 7.44888 0 1965-10-01 7.82029 ° 1966-01-01 8.63126 0 1966-04-01 0.31429 0 1966-07-01 2.14380 0 1966-10-01 2.05057 0 1967-01-01 2.54445 ° 1967-04-01 -0.74861 0 1967-07-01 2.64638 0 1967-10-01 1.88881 0 1968-01-01 7.21430 ° 1968-04-01 5.71663 0 1968-07-01 2.00650 ° 1968-10-01 0.49618 0 1969-01-01 5.37189 0 1969-04-01 0.29039 0 1969-07-01 1.52492 0 1969-10-01 -3.13236 0 1970-01-01 -1.58313 1 1970-04-01 -0.67820 1 1970-07-01 2.30734 1 1970-10-01 -5.70015 1 1971-01-01 9.50120 0 1971-04-01 1.00148 0 1971-07-01 2.04071 ° 1971-10-01 -0.28658 0 1972-01-01 6.31726 0
3. What is an economic recession? Examine the first table below and explain why the NBER recession indicator is not particularly useful. Then, using the conventional indicator discussed in class, identify all recessionary periods. [Hint: According to conventional estimates, an economy is considered to be in a recession if it experiences two consecutive quarters of negative growth in real GDP per capita.] Quarters DATE fredgraph Growth Rate (Real GDP per capita) Conventional Indicator NBER Indicator 1965-01-01 8.46251 0 1965-04-01 3.93674 ° 1965-07-01 7.44888 0 1965-10-01 7.82029 ° 1966-01-01 8.63126 0 1966-04-01 0.31429 0 1966-07-01 2.14380 0 1966-10-01 2.05057 0 1967-01-01 2.54445 ° 1967-04-01 -0.74861 0 1967-07-01 2.64638 0 1967-10-01 1.88881 0 1968-01-01 7.21430 ° 1968-04-01 5.71663 0 1968-07-01 2.00650 ° 1968-10-01 0.49618 0 1969-01-01 5.37189 0 1969-04-01 0.29039 0 1969-07-01 1.52492 0 1969-10-01 -3.13236 0 1970-01-01 -1.58313 1 1970-04-01 -0.67820 1 1970-07-01 2.30734 1 1970-10-01 -5.70015 1 1971-01-01 9.50120 0 1971-04-01 1.00148 0 1971-07-01 2.04071 ° 1971-10-01 -0.28658 0 1972-01-01 6.31726 0
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 1QR
Related questions
Question
Please help and Solve! (Note: this is a practice problem)
![3. What is an economic recession? Examine the first table below and explain why the NBER
recession indicator is not particularly useful. Then, using the conventional indicator discussed in
class, identify all recessionary periods. [Hint: According to conventional estimates, an economy
is considered to be in a recession if it experiences two consecutive quarters of negative growth
in real GDP per capita.]
Quarters
DATE
fredgraph
Growth Rate (Real GDP per capita) Conventional Indicator NBER Indicator
1965-01-01
8.46251
0
1965-04-01
3.93674
°
1965-07-01
7.44888
0
1965-10-01
7.82029
°
1966-01-01
8.63126
0
1966-04-01
0.31429
0
1966-07-01
2.14380
0
1966-10-01
2.05057
0
1967-01-01
2.54445
°
1967-04-01
-0.74861
0
1967-07-01
2.64638
0
1967-10-01
1.88881
0
1968-01-01
7.21430
°
1968-04-01
5.71663
0
1968-07-01
2.00650
°
1968-10-01
0.49618
0
1969-01-01
5.37189
0
1969-04-01
0.29039
0
1969-07-01
1.52492
0
1969-10-01
-3.13236
0
1970-01-01
-1.58313
1
1970-04-01
-0.67820
1
1970-07-01
2.30734
1
1970-10-01
-5.70015
1
1971-01-01
9.50120
0
1971-04-01
1.00148
0
1971-07-01
2.04071
°
1971-10-01
-0.28658
0
1972-01-01
6.31726
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50098abc-5959-42c6-af74-c1f5e7cca4be%2F95fe9c60-bdb2-48d7-8a7f-65d9b7001a24%2Farjp4fp_processed.png&w=3840&q=75)
Transcribed Image Text:3. What is an economic recession? Examine the first table below and explain why the NBER
recession indicator is not particularly useful. Then, using the conventional indicator discussed in
class, identify all recessionary periods. [Hint: According to conventional estimates, an economy
is considered to be in a recession if it experiences two consecutive quarters of negative growth
in real GDP per capita.]
Quarters
DATE
fredgraph
Growth Rate (Real GDP per capita) Conventional Indicator NBER Indicator
1965-01-01
8.46251
0
1965-04-01
3.93674
°
1965-07-01
7.44888
0
1965-10-01
7.82029
°
1966-01-01
8.63126
0
1966-04-01
0.31429
0
1966-07-01
2.14380
0
1966-10-01
2.05057
0
1967-01-01
2.54445
°
1967-04-01
-0.74861
0
1967-07-01
2.64638
0
1967-10-01
1.88881
0
1968-01-01
7.21430
°
1968-04-01
5.71663
0
1968-07-01
2.00650
°
1968-10-01
0.49618
0
1969-01-01
5.37189
0
1969-04-01
0.29039
0
1969-07-01
1.52492
0
1969-10-01
-3.13236
0
1970-01-01
-1.58313
1
1970-04-01
-0.67820
1
1970-07-01
2.30734
1
1970-10-01
-5.70015
1
1971-01-01
9.50120
0
1971-04-01
1.00148
0
1971-07-01
2.04071
°
1971-10-01
-0.28658
0
1972-01-01
6.31726
0
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