We measure economic growth by the percentage change in real GDP. ...

[chads108]

We measure economic growth by the percentage change in real GDP. In general terms outline the course of the U.S. output growth rate in recent decades, both in terms of its trend and its changes around trend.
 
  Pay particular attention to the stability of the growth rate.

Question 2

In the two-period model with limited commitment, if the collateral constraint binds
 
  A) increases in the present value of collateral increase current consumption and reduce future consumption.
  B) increases in the present value of collateral increase current consumption one-for-one.
  C) increases in the present value of collateral decrease current consumption and increase future consumption.
  D) increases in the present value of collateral increase current consumption less than one-for-one.

[InfiniteSteez]

Answer to Question 1

Real output growth has been highly volatile around a trend of roughly 3 a year. It was relatively steady during the 1960s and consistently positive. During the 1970s and early 1980s there were numerous periods of negative growth. Since 1983, growth has been positive and relatively stable except for brief periods in 1990-1991 and 2001.

Answer to Question 2

B