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Ed Dolan’s Econ Blog First Look at GDP for Q2 2014 Show US Economy Stronger Than Previously Thought Posted July 30, 2014 Terms of Use: These slides are provided 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 Publishing.

July 30, 2014 Ed Dolan’s
Econ Blog US GDP Rebounds in Q2 2014  The advance estimate from the Bureau of Economic Analysis released on July 30 showed that US real GDP grew at an annual rate of 4.0 percent in Q2 2014  That represents a sharp rebound from a 2.1 percent drop in the first quarter, when GDP growth was slowed by bad weather and technical adjustments to measurement of healthcare spending

July 30, 2014 Ed Dolan’s
Econ Blog Revisions Make Past Quarters Look Stronger Revisions going all the way back to 1999 made past GDP data look somewhat stronger than previously announced. The slump in Q1 2014 was revised from -2.9% to -2.1%, and estimated growth was raised for three of the four quarters of 2013

Phases of the Business Cycle
 According to standard terminology, the recession phase of the business cycle is the downward movement of GDP from its previous peak  It is common to refer to the first phase of growth following the trough (low point) of the recession as a recovery. During that phase, idle equipment goes back on line and workers return to their jobs.  Official reports call the entire growth phase of the cycle an expansion, but many writers apply that term only after GDP has reached its previous peak.  The latest data show that the expansion resumed in Q2 2014 July 30, 2014 Ed Dolan’s Econ Blog

Sources of Growth by Sector
 The renewed growth of GDP in Q2 2014 was broadly based  Consumption grew at a slightly faster than average pace  Investment enjoyed one of its strongest quarters in years  An increase in expenditures of state and local government more than offset a slight decrease in Federal expenditures  Exports, which have been a strong point of the recovery, rebounded strongly from their winter downturn Contribution by sector to the 4.0% GDP growth in Q2 2014 Note: Imports are recorded in the national accounts with a negative sign, so the -.1.85 percentage points shown here represent an increase in imports July 30, 2014 Ed Dolan’s Econ Blog

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about Ed Dolan’s Econ texts or visit www.bvtpublishing.com For more slideshows, follow Ed Dolan’s Econ Blog Follow @DolanEcon on Twitter

Click here to learn more
about Ed Dolan’s Econ texts or visit www.bvtpublishing.com For more slideshows, follow Ed Dolan’s Econ Blog Follow @DolanEcon on Twitter