CurrentConstant

Year/qdollardollar

GDPGDP

1973Q1 1,380.7 5,380.5

1973Q2 1,417.6 5,441.5

1973Q3 1,436.8 5,411.9

1973Q4 1,479.1 5,462.4

1974Q1 1,494.7 5,417.0

1974Q2 1,534.2 5,431.3

1974Q3 1,563.4 5,378.7

1974Q4 1,603.0 5,357.2

1975Q1 1,619.6 5,292.4

1975Q2 1,656.4 5,333.2

1975Q3 1,713.8 5,421.4

1975Q4 1,765.9 5,494.4

• Present the basic definition of a recession (used by the BEA). Does the data show a recession according to this definition? If so, when?

• What was the average quarterly rate of real growth from 1973Q1 to 1975Q4? Show your calculations and assume that n = 11.

• What was the average quarterly rate of inflation 1973Q1 - 1975Q4? Show your calculations and assume that n = 11.

• What is the equation for the Trend Real GDP?