When economists think about history, fluctuations often stand out--oil shocks an

Question

When economists think about history, fluctuations often stand out--oil shocks and stagflation in the 1970s, a recession followed by a long expansion in the 1980s, a recession followed by an extraordinary low-unemployment, low-inflation boom in the 1990s.

Go the Web site of the Bureau of Economic Analysis (www.bea.gov) and retrieve the quarterly revision of NIPA Table 1.1.6, real GDP in chained (2005) dollars. Get real GDP for the fourth quarter of 1959, 1969, 1979, 1989, 1999, 2000, and 2010 as well as for the fourth quarter of the most recent year available.

Once this data is obtained, answer the following questions:

Using the real GDP numbers for 1959 and 1969, calculate the decadal growth rate of real GDP for the 1960s. Do the same for the 1970s, 1980s, 1990s, and the 2000s and for the available years of the most recent decade.

How does growth in the 1970s compare to growth in the later decades? How does growth in the 1960s compare to the later decades? Which decade looks most unusual?

Please I do not need the definition of Macroeconomics. I need help finding the solution to this question if it is feasible. Show me in steps so I can understand how to calculate the decadal growth.

Explanation / Answer

Once you have obtained the information from the BEA website the process is quite straight forward. Grab the data for the relevant years, in this case:

Once you have this data all you do is find the year over year change, for example you would take the GDP result for 1969q4 (4259.6) and subtract the GDP result for 1959q4 (2782.8) leaving you with 1476.8. You then divide this by the GDP result for 1959q4 (2782.8) which leaves you with 0.530689 which is the "decadal growth rate of real GDP"

The rest of these numbers can be found below:

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