Refer to the \"In the News\" below: It’s all bad news on the economic front. The
ID: 3452129 • Letter: R
Question
Refer to the "In the News" below:
It’s all bad news on the economic front. The government reported yesterday that the U.S. economy suffered its biggest decline in 26 years in the last quarter of 2008. According to the Department of Commerce, Gross Domestic Product (GDP) fell at an annual rate of 3.8 percent – the largest drop since the first quarter of 1982. Spending was down across the board, especially in the critical area of big ticket durable goods (down 22 percent). Economists are worried that the plunge in spending will continue, pushing the U.S. economy into another recession.
Source: News reports of January 30, 2009.
(a) By what percentage did GDP decline in 2008?
Instructions: Enter your response as a percent rounded to one decimal place.
percent
(b) At that rate, how much output would have been lost in the $14 trillion economy of 2008?
Instructions: Enter your response rounded to the nearest whole number.
$ billion
(c) How much income did this represent for each of the 300 million U.S. citizens?
Instructions: Enter your response rounded to two decimal places.
$
rev: 03_17_2016_QC_CS-46066
In The News: Sharpest Economic Decline in 26 YearsIt’s all bad news on the economic front. The government reported yesterday that the U.S. economy suffered its biggest decline in 26 years in the last quarter of 2008. According to the Department of Commerce, Gross Domestic Product (GDP) fell at an annual rate of 3.8 percent – the largest drop since the first quarter of 1982. Spending was down across the board, especially in the critical area of big ticket durable goods (down 22 percent). Economists are worried that the plunge in spending will continue, pushing the U.S. economy into another recession.
Source: News reports of January 30, 2009.
Explanation / Answer
a) 4 %
It's 3.8% and when it's rounded it's 4%.
b) 560 Billion
4% in 14 billion is 0.56 trillion and when it's converted to billion, it comes to 560 billion.
c) 1866.66 dollars.
560 billion divided by 300 million is 1866.66 dollars to each American.