5. Suppose you recently received the GDP numbers for the last quarter. When you calculated the change from

the previous quarter, you observed the following: observed the following changes:

Y > +1.5%

C > +0.1%

I > +3%

G > +0.2%

NX > unchanged

How would you interpret each value in context with the whole of GDP? Is there anything in the data that is

predictive (potentially) of future conditions?

6. You have a business that manufactures circuit boards for mobile phones. Suppose you received the GDP

numbers for the quarter after those in problem 4:

Y > +0.3%

C > -2%

I > +2.5%

G > +0.2%

NX > unchanged

a. Using the data from both quarters (prob 5 and prob above), what do you expect is happening in the

economy and what might this mean for your business? Explain why you came to this conclusion.

b. What does this portend for the future of the economy (if anything) and how might you position your business

given your analysis?