The Reflection on Real Gross Domestic Product (GDP) Data

Question:

In what quarter did this economy enter a recession?

Answer:

Between quarter 7 and 8

Reflecting on the data provided, the economy entered a recession between quarter 7 and 8. This was identified based on the decrease in GDP from quarter 7 to quarter 8.

To calculate the recession, let's consider the GDP values in quarter 7 and quarter 8:

GDP in quarter 7 = $4,499 billion

GDP in quarter 8 = $4,409 billion

The growth rate of GDP in these two quarters can be calculated as:

Growth rate = (4409 - 4499) / 4499 * 100

= -2%

Based on the negative growth rate of -2%, it indicates a decrease in GDP, which signifies a recession. A recession occurs when the GDP of an economy experiences a decline, affecting various aspects of economic activity.

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