Thomas Shogren, Chapter 9, Question #7

During this chapter I was reacquainted with the term GDP and learned some of the analytical uses of GDP, some of the vital signs of the economy, how the most recent recession came into effect, and how the economy can be stimulated during a recession. I found it very interesting that GDP can be used to quantify how an economy is either growing or shrinking. Some of the vital signs of the economy that are listed in this chapter are unemployment, poverty, income inequality, size of government, budget deficit/surplus, current account surplus/deficit, national savings, demographics, and total nation happiness. One of the big factors in the most recent recession was the crash in the housing market. I found it very surprising that spending will help stimulate the economy while saving can cause the economy to fall further into recession. I believe that this chapter has broadened my perspective on the most recent recession.