Contribution to percentage change in real gross domestic product:

Personal consumption expenditures 2003 Q1: 1.31 2016 Q4: 1.32

Contribution to percentage change in real gross domestic product: Gross

private domestic investment 2003 Q1: -0.06 2016 Q4: 1.19

Contribution to percentage change in real gross domestic product:

Government consumption expenditure and gross investment 2003 Q1: 1.31
2016 Q4:

Contributions to percentage change in real gross domestic product: Net

exports of goods and services. 2003 Q1: 0.15 2016 Q4: -0.06

1) The Sum of 2003 Q1 values gives us 2.71 and sum of 2016 q4 values is 3.77, this gives us
a percentage change of 1.06. Actual real GDP change percentage growth during this
time period was 30.79% (Fred), from 13,619.434 billion 2012 Chained USD to 17812.56
Billion 2012 Chained USD in Q4 2016.

2) G = GDP – c%*GDP – i%*GDP -Net Exports%*GDP (Solow residual)

=GDP(1-c%-i%-net exports)

period GDP C% I% G Net exports

2006 Q1 15,244 2.92 -0.18 32,012.4 0.36

2006 Q2 15,282 1.38 -0.08 -6876.9 0.15

2006 Q3 15,305 1.73 0.16 -3061 -0.69

2006 Q4 15,434 2.60 -1.04 -35,343.86 1.73

2007 Q1 15,479 1.7 -0.56 -1238.32 -0.06

2007 Q2 15,578 0.73 0.42 -7477.44 0.33

2007 Q3 15,672 1.8 -0.36 -23194.56 1.04
2007 Q4 15,767 1.05 -0.20 -24281.18 1.69
2008 Q1 15,703 -0.40 -0.76 26381.04 0.48
2008 Q2 15,793 0.76 -0.69 -18,794 2.12
2008 Q3 15,710 -2.06 0.36 31,734 0.68

2008 Q4 15367 -2.31 -1.97 86,824 -0.37

2009 Q1 15187 -0.6 -2.13 22,477 2.25
2009 Q2 15162 -1.26 -1.04 11,978 2.51
2009 Q3 15217 1.88 -0.33 -609 -0.51
2009 Q4 15379 -0.28 4.43 -44138 -0.28
2010 Q1 15456 1.56 1.30 -21638 -0.46

2010 Q2 15606 2.54 0.92 -11392 -1.73

2010 Q3 15726 1.95 2.27 -37,742 -0.82
2010 Q4 15808 1.67 -1.24 -8536 1.11

3) Pre-Recession (2006 Q1 to 2007 Q4)

-Consumption is positive, investment expenditure fluctuates between positive and
negative

Recession (2008 Q1 to 2009 Q2)

-Consumption is consistently negative (barring Q2 2008), Investment expenditure is also
consistently negative (barring Q3 2008)

Recovery (2009 Q3 to 2010 Q4)

-Initially positive consumption which suddenly becomes negative, and then increases
rapidly and stays positive.
-Investment expenditure is initially negative, then increases and becomes positive and
stays so except in Q4 2010.
 4) I infer that expansionary fiscal policy was employed by the US govt as Govt. spending
remained consistently positive from Q1 2008 to Q4 2009.

period GDP c i G (Solow residual) Net

Exports
Q1 2019 18,835 0.26 0.57 -3767 0.37
Q2 2019 18,962 1.73 -0.62 9671 -0.62
Q3 2019 19,131 2.27 -0.24 -25062 0.28
Q4 2019 19,216 1.55 -1.24 -11722 1.3
Q1 2020 18,990 -4.25 -0.35 107,294 -0.05
Q2 2020 17,379 -23.07 -4.35 471,318 1.3
Q3 2020 18,744 26.34 7.57 -565,506 -2.74
Q4 2020 18,924 2.53 0.3 -2839 -1.68
Q1 2021 19,216 6.98 -2.52 -46887 -1.02
Q2 2021 19,544 7.84 -0.75 -107297 -0.6
Q3 2021 19,673 1.98 1.96 -36592 -1.08
Q4 2021 20,006 2.14 5.01 119,836 -0.16
Q1 2022 19,924 6.98 -2.52 -6575 -3.13
Q2 2022 19,895 Data Data Data unavailable Data
unavailable unavailable unavailable
Q3 2022 20,055 Data Data Data unavailable Data
unavailable unavailable unavailable
Q4 2022 20,198 Data Data Data unavailable Data
unavailable unavailable unavailable

5) The government pursued a much more expansionary approach in the covid recession as
compared to 2008. Government spending suddenly increased from -11,722 in Q4 2019
to 471,318 in Q2 2020. This support was then tapered down gradually, although
fluctuations in government spending still existed.

As compared to the 2008 recession, the expansionary response was much weaker, with
govt. spending not increasing nearly enough following the first bad quarter.