## # A tibble: 1,096 × 5
## # Groups: symbol [8]
## symbol date price change text
## <chr> <date> <dbl> <dbl> <glue>
## 1 GDPC1 1947-01-01 2034. NA 1947.1,
## Growth: NA
## 2 GDPC1 1947-04-01 2029. -0.00267 1947.2,
## Growth: -0.3%
## 3 GDPC1 1947-07-01 2025. -0.00207 1947.3,
## Growth: -0.2%
## 4 GDPC1 1947-10-01 2057. 0.0156 1947.4,
## Growth: 1.6%
## 5 GDPC1 1948-01-01 2087. 0.0150 1948.1,
## Growth: 1.5%
## 6 GDPC1 1948-04-01 2122. 0.0165 1948.2,
## Growth: 1.7%
## 7 GDPC1 1948-07-01 2134. 0.00573 1948.3,
## Growth: 0.6%
## 8 GDPC1 1948-10-01 2136. 0.00112 1948.4,
## Growth: 0.1%
## 9 GDPC1 1949-01-01 2107. -0.0138 1949.1,
## Growth: -1.4%
## 10 GDPC1 1949-04-01 2100. -0.00341 1949.2,
## Growth: -0.3%
## # … with 1,086 more rowsManagers need to know:
| your customers/products | magnitude of spending changes | timing of spending changes |
|---|---|---|
| consumer services | very stable | coincident with GDP |
| consumer nondurables | stable | coincident with GDP |
| consumer durables | volatile | coincident with GDP |
| housing construction | very volatile | leads fluctuations in GDP |
| capital spending | very volatile | lags fluctuations in GDP |
| govt. spending, federal | moderate | not always corr. with GDP |
| govt. spending, state & local | stable | lags fluctuations in GDP |
| exports | volatile | not corr. with GDP |
| imports | volatile | varies depending on product |
Gross Domestic Product
Profits decrease during a recession because costs do not decrease as much as sales do.
GDP vs Consumer Spending
GDP vs Consumer Services
GDP vs Consumer Durables
GDP vs Consumer Non-Durables
GDP vs Nonresidential Construction
Capital Spending is the money spent by an organization to purchase, maintain, or improve its fixed assets. Some examples of fixed assets are office buildings, equipment, and land.
A deficit happens when the governments spending exceeds revenues. Because of this, recession doesn’t hurt federal spending like recession would other businesses.
Products that are shipped from one country to another to be sold.
Products that are shipped from one country to another country.
Explan each of the following terms in your own words. The author explains the terms in the textbook. If necessary, you may also Google the term on the Web. Good resources include:
GDP is a measurement used in the economy to determine the value of products in the US.
Nominal GDP is unadjusted for inflation and GDP eliminates misrepresentation cause by inflation or deflation.
the total value of products and services a nation produces and offers in a given year
A recession is a drop in GDP, which is a downturn in production. This downturn is caused by a significant drop in sales, employment, and production as well as weaknesses spread through the economy for two consecutive quarters.
A major leading indicator of a recession is when there is a shift in the business cycle A leading indicator anticipates shifts in the business cycle before the economy changes
An event related to a business that affected the business financially
The Great Recession was caused by a fall of the housing market. It lasted 18 months. There are many social and economic effects including job loss, unemployment, increased stress, lower fertility rates and changes in household structure.