ECON 214: INTERMEDIATE MACROECONOMICS
ASSIGNMENT 1:  Real GDP and Economic Growth

Use the Federal Reserve Bank of St. Louis' website, FRED, to create these graphs.
Please attach the graphs to your answers, on a separate page or copy/paste them into your answers.

1. Create a graph showing how real GDP has changed over time. Use the 'Search FRED' towards the top of the FRED page and search for 'real GDP'.
Change the starting year to 1980.  To change the starting year you can change it directly using the boxes above the graph (on the right) or use the slider below the graph.

2.  Create a graph of economic growth.  To do this, use the graph of real GDP and click on 'EDIT GRAPH' and change 'Units' to 'Percent Change from Year Ago.  Change the starting year to 1980.

Based on the graphs, please answer the following questions in complete and proper sentences.

3.  What year(s) did the U.S. experience its last recession?  What about the recession before the last one?     (NOTE: If you want to see the actual data move your cursor into the graph)

4.  Look at the graph of real GDP and compare the depth (the fall in GDP) of the recessions (recessions are indicated by the shaded bars) and the economic recovery from each recession (increase in GDP following a recession). 
Comment on the depth and the recovery from the great recession in 2008/2009 compared to other recessions.

5.  Look at the graph of  economic growth.  What is the latest quarterly number for economic growth?  What is the real meaning of this number?