Answer to Question #57526 in Microeconomics for tamara

Question

Go to the Bureau of Economic Analysis at this Web site, and look up the latest new release for real GDP. Address the following questions after reading the latest release:
• Where is the United States in the business cycle?
• What is the real GDP today?
• What is the largest component of GDP?
• What is the smallest component of GDP?
• What is the fastest growing component of GDP, and why?
• What components of GDP were involved in the change from last month to this month?
• What is the price index today?
• What caused the change?

Answer 1

• The United States is in the expansion.
• The real GDP today is near 16.5 billion dollars.
• The largest component of GDP is consumption.
• The smallest component of GDP is net exports.
• The fastest growing component of GDP is consumption.
• All components of GDP were involved in the change from last month to this month.
• The price index today is near 2%.
• The increase in inflation may cause the change in price index.