The BEA says “Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the fourth quarter of 2022”. Your friend has gone to FRED and pulled up the numbers FRED gives for the “Percent Change” and the “Percent Change from Year Ago” in real GDP for the 4th quarter of 2022. It turns out (you can verify this) that neither of those numbers is consistent with what the BEA says real GDP increased by. So your friend is very puzzled. Write one paragraph in your essay that helps your reader clearly understand what this 2.9 percent number really means, using the FRED numbers for context.
The BEA says “Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the fourth quarter of 2022”. Your friend has gone to FRED and pulled up the numbers FRED gives for the “Percent Change” and the “Percent Change from Year Ago” in real GDP for the 4th quarter of 2022. It turns out (you can verify this) that neither of those numbers is consistent with what the BEA says real GDP increased by. So your friend is very puzzled. Write one paragraph in your essay that helps your reader clearly understand what this 2.9 percent number really means, using the FRED numbers for context.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The BEA says “Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the fourth quarter of 2022”. Your friend has gone to FRED and pulled up the numbers FRED gives for the “Percent Change” and the “Percent Change from Year Ago” in real GDP for the 4th quarter of 2022. It turns out (you can verify this) that neither of those numbers is consistent with what the BEA says real GDP increased by. So your friend is very puzzled. Write one paragraph in your essay that helps your reader clearly understand what this 2.9 percent number really means, using the FRED numbers for context.
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A country's overall economic output is measured by its real gross domestic product (GDP), which is GDP adjusted for inflation. To put it another way, it is an assessment of the worth of the goods and services produced in a nation, represented in constant prices that track the evolution of the economy's purchasing power.
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