Assignment

285115842010A graph that shows the annual growth rate of real GDP for each quarter since 1990

A graph that shows the annual growth rate of real GDP for each quarter since 1990

Create a clearly labeled graph that shows the annual growth rate of real GDP for each quarter since 1990.  If you have trouble creating the graph, ask me for help. 

2. Calculate the average growth rate for each decade (i.e. 1990s, 2000s, 2010s) as well as the average for the entire period except the pandemic (1990 – 2019), and put them in a table like the one below.  Briefly describe what the table shows about what decades had the fastest or slowest growth.

Period Average Growth in Real GDP

1990 – 1999 9.492

2000 – 2009 8.214

2010 – 2019 8.66

Entire Period (pre-pandemic) 1990 – 2019  8.79

The decade 2000-2009 had the fastest growth rate since it had one minor recession period, while the decade 2010-2019 had the slowest growth rate because during the ten-year period the economy experienced three recession periods.

A recession is a period when real GDP falls or grows very slowly (close to 0%) for at least 6 months.  From 1990 to 2020, how many recessions have we had since 1990? We have five recession periods since 1990.  When did they happen? 1. From 01/04/1990-01/07/1992, 2. from 01/01/2008-01/10/2009, 3. from 01/10/2014-01/04/2016 4. from 01/04/2017-01/01/2019 5. from 01/04/2019-01/04/2020.When was the worst one and how much did GDP fall? The worst one was from 01/04/1990-01/07/1992 when the GDP was a negative

NOTE: If the growth rate falls from 5% to 4%, that does not mean that GDP went down (only that it grew more slowly). 

Unemployment and the Labor Force

4. Get data on the unemployment rate.  What is the most recent unemployment rate? The most recent unemployment rate is at 6.0% as per 1st January 2021. How much higher is the unemployment rate than it was before the pandemic hit?  The unemployment rate has increased by 2.8%. Before the pandemic hit the unemployment, rate was at 3.2%. The current unemployment rate is at 6.0%. 6.0%-3.2%=2.8%

5.  Get data on the labor force participation rate.  What has happened to the labor force participation rate since 1990? Describe the changes. Since 1990 the labor force participation rate remained relatively constant. In the decade of 1990-1999 the labor force rate was at an average of 66%but towards the end of the decade from October 1996, to the end of the decade in 1999, the labor force rate rose to an average of 67%. During the decade of 2000-2009, at the beginning of the decade, the labor force participation rate was at an average of 66%. Towards the end of the decade from 2008 the labor force participation rate started to decline to 65% and eventually at the end of the decade it was at 64.3%. Thereafter in the decade 2010-2020, the labor force participation rate declined significantly from 64% to 63% and finally at the end of the decade it was at 61.5%. How did the pandemic affect the labor force participation rate?  During the pandemic the labor force participation rate declined from 63.4% at the start of the pandemic in December 2019. It continued to decline to 62 with lows of 60% when the pandemic was at its peak in April and May 2020 and finally 61.5% at the end of the decade.

6. Get data on the size of the civilian labor force in millions of workers.  How much did it drop during the pandemic from the peak before the pandemic to the lowest point after the pandemic hit? Before the pandemic hit the number of civilian workers was 164579000 and it dropped to 156478000 which is the lowest point after the pandemic hit. How much below the peak are we in the most recent data? From the most recent data we are at 160161000 which is 4418000 below the peak