This section looks at US recessions over the past 60 years. To work out this problem, first obtain quarterly data on US output growth for the period 1960 to the most recent data from www.bea.gov. Table 1.1.1 presents the percent change in real gross domestic product (GDP). The data can be downloaded to a spreadsheet. Plot the quarterly GDP growth rates from 1960:1 to the latest observations. Which, if any, quarters have negative growth? Using the definition of a recession as two or more consecutive quarters of negative growth, answer the following questions:

a. How many recessions has the US economy undergone since 1960, quarter 2?

b. How many quarters has each recession lasted?

c. In terms of length and magnitude, which two recessions have been the most severe?

Data From Table 1.1.1:-

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0 Months 20 15- 10- 5- the 45 25 9/02 5/07 1/10 T 1/13 | 8/18 US Economic Recessions: 1900-2008 43 Pre WWII Post WWII 1/20 5/23 10/26 8/29 5/37 2/45 11/48 7/53 8/57 160 12/69 11/73 1/80 7/81 7/90 3/01 Figure 1.1 Duration (in months) of US recessions since 1900 Source: NBER, Deutsche Bank Global Research, Wikipedia.