Gross Domestic Product, Fourth Quarter

Real gross domestic product increased at an annual rate of 2.9 percent in the fourth quarter of 2022. The increase in real GDP reflected increases in investment, consumer spending, and government spending, that were partly offset by decreases in exports. Imports decreased. Current‑dollar GDP increased 6.5 percent at an annual rate.—bea.gov

Answer the following questions to check your understanding of the story.

What is relationship between GDP (Y) and investment (I), consumer spending (C), government spending (G), exports (X), and imports (M), all valued in base year prices?

a) There is no relationship among these variables.

b) Y = C + I + G + X - M

c) Y – M = C + I + G + X

d) Y = C + I + G + M - X

What does the news clip tell us about the inflation rate in the fourth quarter of 2022?

The data in the news clip tell us that as measured by the ____________, the inflation rate was ____________ percent.

a) CPI; 6.9

b) GDP deflator; 6.9

c) CPI; 3.6

d) GDP deflator; 3.6

Gross Domestic Product, Fourth Quarter

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