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July 23, 2014

Homework Help: Macroeconomics - real GDP growth

Posted by Samantha on Wednesday, September 6, 2006 at 2:14am.

I have graphed the real GDP growth over the years 1990-2004.

I need help analyzing it! What happened when it was going down? What happened when it shot back up again? HELP!

Thanks...


The GDP growth rate went down considerably during the period 2000-2002, becoming slightly negative in 2001. This was a reaction to the collapse of the stock market, and in particular technology and internet-related stocks. There has been real GDP growth on other years of the period 1990-2006, but it has been less since 2002 than it was in the 1990's. The recovery in GDP growth rate since 2002 is attributable to the low-interest rates promoted by the Federal Reserve and the continued benefits of USA productivity imporovement, once the stock market (especially NASDAQ stocks) stabilized in value

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