"The second estimate of second-quarter U.S. GDP growth points to solid momentum in domestic demand," said Michael Gapen, U.S. economist at Barclays. "The data do little to change the picture of an economy that continues to grow at a modest pace as the [year- on-year] change in GDP through the second quarter is 2.2 percent; above our estimate of potential but only modestly so." The report said that the acceleration in GDP reflected ESSENCE OF THE STORY upward revisions to estimates of consumer spending and non-residential investment, partly offset by downward The commerce department's preliminary estimate for the second quarter of 2017 was revisions to state and local government spending. Within that U.S. real GDP grew at an annualized rate the spending figures, outlays on used cars and cellular of 2.6 percent. phone services were stronger than previously estimated. The commerce department's second estimate is an annualized growth rate of 3 percent. Copyright Sam Fleming, "US Economy Has Strongest Quarter Since 2015," The Fix andd' This growth rate is the highest since the first Them, August 30, 2017. quarter of 2015. It is also a big rebound from the first quarter growth rate of 1.2 percent.Ell Click on the icon to study the Economics in the News article. Then answer V 120 Price level (GDP deflator, 2009:100} \"$16 118 3. Use the ASAD model to show the changes in aggregate demand and aggregate supply that occurred in 2016 and 2017 that brought the economy to its situation in mid-2017. The graph shows the U.S. economy in the second quarter of 2016. Draw and label the long-run aggregate supply curve in 2017. Draw and label the aggregate demand curve in 2017. Draw a point at the short-run macroeconomic equilibrium in the second quarter of 2017. 16.6 16.7 16.8 16.9 17.0 17.1 172 173 Real GDP (tri lions 012009 ollars)