It's all bad news on the economic front. The government reported yesterday that the U.S. economy...

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It's all bad news on the economic front. The government reported yesterday that the U.S. economy suffered its biggest decline in 26 years in the last quarter of 2008. According to the Department of Commerce, gross domestic product (GDP) fell at an annual rate of 3.8 percent-the largest drop since the first quarter of 1982. Spending was down across the board, especially in the critical area of big-ticket durable goods (down 22 percent). Economists are worried that the plunge in spending will continue, pushing the U.S. economy into another recession. a. By what percentage did spending on big-ticket items decline? percent b. By what percentage did GDP decline in 2008? percent c. At that rate, how much output would have been lost in the $14 trillion economy of 2008? (Please round to the nearest whole dollar.) billion It's all bad news on the economic front. The government reported yesterday that the U.S. economy suffered its biggest decline in 26 years in the last quarter of 2008. According to the Department of Commerce, gross domestic product (GDP) fell at an annual rate of 3.8 percent-the largest drop since the first quarter of 1982. Spending was down across the board, especially in the critical area of big-ticket durable goods (down 22 percent). Economists are worried that the plunge in spending will continue, pushing the U.S. economy into another recession. a. By what percentage did spending on big-ticket items decline? percent b. By what percentage did GDP decline in 2008? percent c. At that rate, how much output would have been lost in the $14 trillion economy of 2008? (Please round to the nearest whole dollar.) billion

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Solution a Spending on bigticket durable goods decl... View the full answer