2. YearsReal GDP (Millions of 2005 dollars) YearsReal GDP (Millions of 2005 dollars) 19846,577,10019979,854,300 19856,849,300199810,283,500 19867,086,500199910,779,800 19877,313,300200011,226,000 19887,613,900200111,347,200 19897,855,900200211,553,000 19908,033,900200311,840,700 19918,015,100200412,263,800 19928,287,100200512,638,400 19938,523,400200612,976,200 19948,870,700200713,254,100 19959,093,700200813,312,200 19969,433,900200912,987,400

3. Recession

4.  According to the select data, It shows that the U.S. Real GDP is increase over time from 1984 to 2009 in general.  Although there is an increase in general, we found two declines that the U.S. economy experienced in this period.  Those two decline periods are from 1990 to 1991 and from 2008 to 2009.

5.  Recall that real GDP is the gross domestic product measured in terms of the price level in a base period.  Where GDP is the total market value of all final goods and services produced annually within the borders of the United States, whether by U.S. or foreign-supplied resources.  Also, Economic growth is the expansion of real GDP (or real GDP per capita) over time.  Recession is a period of general economic decline, defined usually as a contraction in the GDP for six months or longer.

6.  Therefore, the U.S. economic is growth over time since the real GDP increase.  the U.S. is in a recession in the period from 1990 to 1991 and from 2008 to 2009 because the real GDP is decrease. The U.S. economic is decline in these period.  From the graph, we found out that there was another decline during 2000 to 2001,but the data in the data table shows that was a slightly increase from 11,226,000 to 11,347,200 during this period. therefore, we believed there was a short period of recession in some months during this period.

7. YearsS&P 500 Stock Market, Price index YearsS&P 500 Stock Market, Price Index 1984167.241997970.43 1985211.2819981229.23 1986242.1719991469.25 1987247.0820001320.28 1988277.7220011148.08 1989353.42002879.82 1990330.2220031111.92 1991417.0920041211.92 1992435.7120051248.29 1993466.4520061418.3 1994459.2720071468.36 1995615.932008903.25 1996740.7420091115.1

8. Decline Declines

9. YearsS&P 500 Stock Market, Volume YearsS&P 500 Stock Market Volume 1984930630001997564825400 19851389085001998722756800 19861545486001999909760900 198718622220020001232315000 198814152900020011303608500 198916796800020021289625700 199016154800020031312119500 199120963760020041449518100 199222918450020052057125200 199327090000020062462849000 199431465660020073363127500 199540093950020085320791300 199645185380020094163287200

10. Decline

11.  The S&P 500 Composite Stock Price Index is an index of 500 stocks from major industries of the U.S. economy. There are indices for almost every conceivable sector of the economy and stock market.  According to the data table and graph above, there are four significant declines in the price index during the period 1984 to 2009 for the S&P 500 Stock Market.  These periods are from 1989 to 1990; 1993 to 1994, 1999 to 2002 and 2007 to 2008.

12.  Also, we found three declines during the period 1984 to 2009 in the volume for the S&P 500 Stock Market in the graph.  Those periods are from 1987 to 1988, 2001 to 2002 and 2008 to 2009.  But, we found another period has a decline on the volume from the data table, which is 1989 to 1990. Maybe because it is just slightly decline from 167968000 to 191548000, the graph is not detail enough to show this decline.

13.  According to a web, if a stock is truly in a healthy uptrend, then volume should rise as prices rise. Negative volume divergence is where price is rising, but volume is declining. This divergence indicates that even though demand still outweighs supply, buyers are not willing to pay up to own the stock.  Therefore, we conclude that during the period 1987 to 1988 and 2008 to 2009 there were a negative volume divergence in the stock market because the price of the stock is rise but the volume declines.  Also, we are conclude that the period from 1987 to 1988, 1989 to 1990, 1993 to 1994, 1999 to 2002 and 2007 to 2009, the stock market is unhealthy because the price and volume of the stock are not increase or decrease at the same time during those period.  Those declines in price and volume could lead the economy market to a recession because recall that one of the factor that cause a recession is typically accompanied by a drop in the stock market.

14. YearsNew car market average price YearsNew car market average price 198476.281997105.262 198578.3371998103.642 198679.7251999102.756 198783.6282000102.629 198883.6542001101.958 198986.5352002102.259 199087.110200398.333 199189.799200498.620 199291.6162005100 199394.5842006101.04 199498.8852007100.537 1995101.200200898.347 1996104.081200999.99

15. Declines Decline

16. YearsNew car market quantity sold YearsNew car market quantity sold 198451.484199773.468 198556.624199879.518 198656.535199987.144 198755.939200085.858 198858.845200182.053 198959.873200291.489 199054.408200392.456 199148.818200496.193 199254.5372005100 199359.403200698.815 199466.69200798.798 199566.62200880.384 199667.798200960.568

17. Declines

18.  There were three declines in the new car market average price during the time from 1984 to 2009.  Those average price for new car market declines periods were from 1997 to 2001, 2002 to 2003 and 2006 to 2008.  There were six declines in the quantity sold of the new car market during the time from 1984 to 2009.  Those periods were from 1985 to 1987, 1989 to 1991, 1994 to 1995, 1999 to 2001, 2006 to 2007 and 2008 to 2009.

19. YearsNew house market average price YearsNew house market average price 198479,9001997146,000 198584,3001998152,500 198692,0001999161,000 1987104,5002000169,000 1988112,5002001175,200 1989120,0002002187,600 1990122,9002003195,000 1991120,0002004221,000 1992121,5002005240,900 1993126,5002006246,500 1994130,0002007247,900 1995133,9002008232,100 1996140,0002009216,700

20. Recession

21. YearsNew house market quantity sold YearsNew house market quantity sold 19846391997804 19856881998886 19867501999880 19876712000877 19886762001908 19896502002973 199053420031086 199150920041203 199261020051283 199366620061051 19946702007776 19956672008485 19967572009374

22. Decline Declines

23.  From the graph and the data table, we found two declines in the price in the year from 1984 to 2009  Those declines on new house market average price periods are from 1990 to 1991 and from 2007 to 2009.  The new house market are faced five declines on the quantity house sold during those years.  They were in the period of 1986 to 1987, 1988 to 1991, 1994 to 1995, 1998 to 1999 and 2005 to 2009.

24.  Recall that one piece that cause the recession is a decline in the housing market.  The decrease on the price and quantity of house sell on those period could cause a recession. And the current recession from 2007 to 2009 is a good example. The house price and quantity drop serious and make the economy market into a serious recession.  One interesting that we discover is that the quantity of the house sold from 2007 to 2009 is less than from 1984 to 1985. It is so bad for our economy.

25. DateVolumeAdj. Close Highest10/9/20072,932,040,0001,565.15 Lowest7/24/198474,370,000147.82 Friday10/29/20103,537,880,0001,183.26

27.  From 1984 to 2007: › Volume and price of stock increased. › Demand stock increased shift the demand curve to right. › Demand dominated supply from 1984 to 2007.  From 2007 to 2010: › Volume of stock increased while price decreased. › Supply stock increased shift the supply curve to right. › Supply dominated demand from 2007 to 2010.

28.  http://www.businessdictionary.com/definition/price- index.html http://www.businessdictionary.com/definition/price- index.html  http://www.sec.gov/answers/indices.htm http://www.sec.gov/answers/indices.htm  http://www.investorwords.com/4086/recession.html http://www.investorwords.com/4086/recession.html  http://www.measuringworth.com/  http://finance.yahoo.com/  http://www.economagic.com/nipa.htm#U7  http://www.huduser.org/portal/periodicals/ushmc/su mmer10/hist_data.pdf