Data for the Classroom from
Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ US GDP: Weak Q2 Growth, Downward Revisions Posted Aug. 1, 2011 Terms of Use: These slides are made available under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics , from BVT Publishers.

US GDP Growth Q2 2011
<ul><li>US GDP grew at an estimated 1.3% annual rate in Q2 2011 </li></ul><ul><li>The January-March 2011 quarter was the 8 th consecutive quarter of growth since the end of the recession that lasted from Dec 2007 to Jun 2009 </li></ul><ul><li>The growth rate of 1.3% disappointed many observers. Approximately 2.5% is considered necessary to prevent unemployment from rising, when increases in the labor force and productivity are taken into account </li></ul>Posted Aug. 1, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Major Revisions Were Made to
Previously Reported Data <ul><li>Q1 growth was revised sharply downward to just 0.4 % from 1.8% </li></ul><ul><li>Revised 2008 and 2009 data show that the recession was much deeper than previously thought </li></ul>Posted Aug. 1, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Recovery of GDP Has Not
Reached Pre-recession Peak <ul><li>After the latest revisions, it now appears US real GDP has not yet reached the level of its pre-recession peak (Q3 2007) </li></ul>Posted Aug. 1, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Sources of US GDP Growth
Q2 2011 <ul><li>Consumption barely grew in Q2 2011 </li></ul><ul><li>Investment grew at 0.87%, with strong business fixed investment helping to make up for weak residential investment </li></ul><ul><li>Federal government spending grew slightly but was more than offset by continued decline of state and local government spending </li></ul><ul><li>Net exports grew strongly on good export growth and slowing growth of imports </li></ul>Posted Aug. 1, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com