## # 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
GDP vs Consumer Spending
GDP vs Consumer Services
GDP vs Consumer Durables
GDP vs Consumer Non-Durables
GDP vs Nonresidential Construction
Capital spending seems to be a quick way to boost the economy, but profits struggle over the long term.
Interest rates go up when government spending increases, as well as consumption and demand for products.
Exports lead to increased trade which leads to a bigger market which leads to more money in the American peoples pockets.
Imports take away jobs from Americans, and don’t contribute to our GDP.
Explain 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:
Gross Domestic Product is the total value of goods and services per year by country.
Nominal GDP does not take inflation into account while Real GDP adjusts numbers using inflation.
GNP is the value of a country’s goods and services in a given year regardless of where the item was produced.
A recession is when the economy falls. Overall unemployment rates go up, our GDP drops, and in general there is not as much money being spent.
Leading indicators are economic trends that can be indicators of a recession. An example of a leading indicator would be stock market indexes.
Anything that a company does pertaining to money. An example of an economic event would be a company making a sale on a product
The 2007 great recession was when our economy took a major decline and entered recession. This is due to numerous factors. There was a giant housing bubble that was built on bonds that were considered to be extremely safe. However these bonds were mostly filled with people that had low credit scores. All of these bonds that were incredibly overvalued started going into the dump when people couldn’t afford to make payments on their mortgages, which hurt many big investment banks who owned most of these bonds.