Using tables 1.1.6 and 1.1.7 examine all four components of GDP (C, I, G, and Xn).

• Which of these components of AD changed the most recently?
• What implication do you think that has on the economy?
• Do you think an increase in government's spending (G) can boost the Aggregate Demand (AD) in a recession?
• Given your knowledge of GDP and the BEA data, what stage of the Business Cycle would the U.S. economy be in currently given the trends?

Bureau of Economic Analysis Table 1.1.6. Real Gross Domestic Product, Chained Dollars [Billions of chained (2012) dollars] Seasonally adjusted at annual rates Last Revised on: January 30, 2020 - Next Release Date February 27, 2020 Line 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 Q1 Q2 Q3 Gross domestic product Q4 Q1 Q2 03 04 01 Q2 17,925.3 18,021.0 18,163.6 18,322.5 18,438.3 18,598.1 18,732.7 18,783.5 18,927.3 19,021.9 19,121.1 19,219.8 Q3 04 2 Personal consumption expenditures 12,438.9 12,512.9 12,586.3 12,729.7 12,782.9 12,909.2 13,019.8 13,066.3 13,103.3 13,250.0 13,353.1 13,411.9 Goods 4,318.2 4,375.9 4,419.7 4,499.8 4,513.9 4,573.5 5 4,614.0 4,631.8 4,649.2 4,746.4 4,808.0 4,822.8 Durable goods 1,538.3 1,567.0 1,596.9 1,643.5 1,652.8 1,685.1 1,699.8 1,705.2 1,706.3 1,759.3 1,793.9 1,803.2 Nondurable goods 2,786.4 2,816.1 2,831.3 2,866.7 2,872.0 2,900.8 2,926.6 2,938.9 2,954.6 3,001.3 3,030.0 3,036.0 Services 8,133.0 8,154.1 8,186.6 8,254.9 8,293.5 8,362.9 8,433.6 8,462.6 8,483.1 8,541.4 8,587.9 8,630.9 7 Gross private domestic investment 3,140.3 3,167.9 3,225.2 3,262.1 3,311.8 3,296.6 3,404.2 3,429.5 3,481.1 3,424.7 3,416.2 3,363.0 Fixed investment 3,111.1 3,133.0 3,144.1 3,210.7 3,254.0 3,295.4 3,301.3 3,323.0 3,349.4 3,337.4 3,330.5 3,331.0 Nonresidential 2,490.5 2,517.4 2,532.6 2,584.2 2,639.5 2,689.9 2,703.9 2,735.8 2,765.6 2,758.5 2,742.7 2,732.4 Structures 521.1 523.7 513.3 519.9 534.9 549.1 546.2 533.4 538.6 523.0 509.6 496.2 11 Equipment 1,139.3 1,163.8 1,181.4 1,217.8 1,237 5 1,247.8 1,256.7 1,279.2 1,278.9 1,281.5 1,269.3 1,259.9 12 Intellectual property products 831.8 832.3 842.3 852.0 872.0 896.9 905.9 931.3 955.6 964.2 975.2 989.3 593.7 502.1 13 Residential 512.4 608.9 605.9 620.4 612.1 606.3 600.1 593.0 591.4 587.0 69.4 69.4 6.5 14 Change in private inventories 8.7 16.6 70.2 31.1 10.5 -28.0 87.2 93.0 116.0 15 Net exports of goods and services 831.5 -850.0 833.7 -883.8 884.2 -850.5 962 4 -983.0 -944.0 -980.7 990.1 -902.0 2,423.5 2,432.9 2,459.5 2,519.2 2,524.0 2.559.9 2,519.3 2,528.5 2,554.4 2,517.5 2,523.4 2,532.4 16 Exports 1,684.7 1,694.0 1.703.1 1,758.1 1,763.3 1,814.1 1,771.2 1,782.5 1.802.6 1,775.3 1,784.7 1,779.8 17 Goods 740.1 740.7 756.6 763.7 763.6 753.2 753.0 751.7 757.8 748.0 745.5 757.2 18 Services 19 Imports 3.255.0 3,282.9 3.293.2 3.403.0 3,408.2 3,410.4 3,481.8 3.511.6 3,498.3 3,498.2 3,513.6 3,434.4 2,730.4 2,753.2 2,759.2 2.865.8 2.875.7 2,881.2 2,945.4 2,962.0 2.940.7 2,941.7 2,949.6 2,859.8 20 Goods 524.1 529.3 538.9 535.0 532.4 540.3 552.0 558.1 557.2 563.7 569.6 21 Services 3,186.1 3,201.1 3,221.4 3,238.0 3,234.9 3,258.1 3,296.6 3,310.4 3,332.4 22 Government consumption expenditures and gross investment 3.157.3 3,168.0 3,167.1 1.186.4 1.195.9 1.196.1 1,209.8 1,218.1 1,229.9 1.238.7 1,242.1 1.248.8 1,273.9 1,284.4 1,295.7 23 Federal 704.7 7164 713.4 721.4 722 5 735.7 741-2 750. 764.5 770.8 775.0 784.3 511.1 24 National defense 480.9 479.0 482.0 487.7 494.9 493.6 497.0 491. 484.5 502.9 509.1 Nondefense 1.970.1 1.969.0 1.974.5 1,981.2 1.989.9 1.997.7 1,991.4 2,007.9 2.021.4 2,024.9 2,035.8 -33.9 -43.0 26 State and local 1,968.9 -15.8 -24.6 29.5 H. 2 4.5 124 -6.5 20.6 27 ResidualTable 1.1.7. Percent Change From Preceding Period in Prices for Gross Domestic Product [Percent] Seasonally adjusted at annual rates Last Revised on: January 30, 2020 - Next Release Date February 27, 2020 Line 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gross domestic product 1.9 1.3 2.4 2.6 2.3 3.2 2.0 1.6 1.1 2.4 1.8 1.4 N Personal consumption expenditures 2.1 0.9 1.7 2.7 2.5 2.2 1.6 1.3 0.4 2.4 1.5 1.6 W Goods 2.2 -2.6 0.7 1.4 2.0 0.7 -0.3 -1.4 -1.6 1.6 -0.8 0.2 Durable goods 0.3 -3.4 -2.6 -1.8 -1.1 -1.7 -1.2 -1.1 0.3 -1.8 -1.2 -2.4 Nondurable goods 3.1 -2.2 2.4 3.1 3.6 2.0 0.1 -1.5 -2.3 3.3 -0.5 1.6 Services 2.6 2.1 3.2 2.8 2.9 2.5 2.6 1.3 2.8 2.5 2.2 Gross private domestic investment 1.6 2.2 2.4 0.8 3.4 2.8 2.1 0.7 1.7 2.0 1.1 0.4 Fixed investment 1.7 2.2 2.1 1.2 3.3 3.0 0.5 1.8 2.0 1.2 0.4 Nonresidential 1.2 1.4 1.4 0.7 1.7 1.9 1.6 0.0 1.6 2.0 0.5 -0.2 10 Structures 2.9 4.5 2.2 2.9 5.0 3.2 5.6 2.8 4.0 1.6 1.1 11 Equipment 1.1 0.1 -0.2 -0.4 -0.3 0.8 1.6 -1.1 1 1.0 0.4 4 -1.1 -1.2 12 Intellectual property products 0.4 1.4 1.3 1.2 3.7 1.1 0.5 -2.2 1.5 2.9 2.0 0.3 3.1 4.6 3.0 9.1 3.9 2.5 2.6 1.7 3.4 2.7 13 Residential 5.1 7.0 14 Change in private inventories 15 Net exports of goods and services 2.6 0.2 3.8 5.5 3.5 5.1 1.1 -1.4 -2.5 3.3 -2.3 -1.3 16 Exports 3.0 -0.7 5.0 5.5 3.8 5.9 0.9 -2.8 4.0 2.4 -4.0 -1.0 17 Goods 1.9 1.8 1.4 5.6 3.0 3.5 1.5 1.4 0.5 5.1 0.9 -2.0 18 Services 4 .7 -0.3 0.6 5.2 7.3 0.6 -1.8 -3.5 1.6 -4.0 -0.4 Imports -1.3 1-0.3 8.1 0.2 -4.3 1.7 -4.9 -0.8 19 5.6 5.8 0.4 -2.3 20 Goods 1.2 4.1 4.6 2.9 3.9 2.2 1.3 0.8 -0.2 1.3 1.2 21 Services 4.0 1.3 1.7 1.6 2.2 Government consumption expenditures and gross investment 3.3 1.5 2.8 4.2 3.8 3.0 2.9 22 1.7 2.0 3.3 4.4 2.9 2.6 2.8 4.6 -2.1 1.5 1.9 1.1 1.5 1.4 2.1 23 Federal 1.8 1.1 1.7 3.1 4.5 2.8 2.7 1.8 24 National defense 2.8 2.6 12.5 3.5 4.2 3.0 2.4 4.3 10.0 -7.2 1.7 1.6 25 Nondefense