PART 8 The Data of Macroeconomics
Chapter 23 of 36 Measuring A Nation’s Income
Section 11 of 15
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Figure 2 - Real GDP in the United States
Real means inflation-adjusted.
This figure shows quarterly data on real GDP for the U.S. economy since 1965.
The shaded vertical bars indicate recessions, which are periods of declining real GDP.
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Note - Figure 2 is from the 5th edition of the Mankiw textbook published in 2008, before the 2008~2009 recession.
Figure 2 data shows how real GDP grows over time.
2007 real GDP was almost four times higher than 1965.
U.S. average real GDP growth has been 3.2 percent per year from 1965 to 2007.
Figure 2 shows at times GDP growth is interrupted by periods of declines, called recessions.
Recessions are generally considered to be a decline of real GDP over two consecutive quarters.
A main activity of macroeconomists is to analyze and explain real GDP long-run growth and short-run fluctuations.
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