4 barring these external shocks gdp components

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Unformatted text preview: hocks. GDP Components Consumer Spending The recession uncharacteristically affected consumers because of the trifecta of impacts: employment, income, and wealth. Total nonfarm employment peaked in January 2008 (seasonally adjusted) before losing 8.8 million jobs; 2.3 million have since been recovered. Nonfarm total wages dropped $282.9 billion, but have been on the rise since Q2 2010. The S&P 500 decreased 57%, and household wealth declined 33% from 2007 to 2009, but they have since increased 85% and 21%, respectively. While these three metrics have demonstrated year-over-year growth, they have not reached their previous peaks. Post-recession consumer confidence, as measured by the Conference Board, peaked at 72 in February 2011 before trending a bumpy descent to 39.8 in October 2011—its lowest level since March 2009. Despite dropping from the 10.1% unemployment rate recorded in October 2009 (seasonally adjusted), unemployment has remained stubbornly high. October 2011 figures were at 9%, but they should tick below this level in 2012. As the economy recove...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.

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