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U.S. Economy May Slip Into a Recession

The latest remarks from Ben Bernanke revealed his beliefs that the U.S. economy would have little, if any, real gross domestic product growth for the first two quarters of 2008. Bernanke goes on to say that RGDP could even “contract slightly”. This in itself, defines a recession, but there is much more information to confirm that the U.S. is headed for a recession.
One of the first indicators of a looming recession is the decline in homebuilding, employment, and consumer spending. These characteristics are certainly representative of a bust, affecting consumption in the expenditure approach. Another good indicator is that orders to U.S. factories “fell more than forecast” (Lanman). This shows that the economy did not correctly account for the reduction of exports, which also affects the expenditure approach. Finally, according to the article, the economy was said to have grown .6% in the last quarter of 2007, and then only .2%......

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Approximate Word Count: 1440
Approximate Pages: 6 (250 words per double-spaced page)

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