After you have studied Economics in the News on pp. 96–97, answer the following questions.

a. By what percentage did real GDP grow from the second quarter of 2013 to the second quarter of 2014? (You can find the data you need to calculate this percentage change on p.

97.)

b. Comparing the increase in the second quarter with the yearonyear increase, what can you say about the change in the real GDP growth rate? Is it slowing or speeding up?

c. Describe the relationship between the fluctuations in the change in real GDP and business inventory investment. Why might inventory changes sometimes lag real GDP changes?