Review the Chapter 15 textbook reading, which covers components of GDP: consumption, investment, government spending, and net exports. Additionally, review the Federal Research graph from FRED Economic Data, provided in the topic Resources and address the following questions.
Review section 15-3 in the textbook and discuss how the relative importance of each GDP category has changed over time in the United States.
As illustrated in the FRED Economic Data graph, in Quarter 1 of 2020 there is a significant drop in personal consumption. Describe what was going on at that time that might explain the change?
The gray bars on the graph display periods of recession and the graph illustrates that investment drops right before and during each recession. Discuss why that would be true and describe what your prediction for personal consumption and investment might be in the next quarter. Justify your response