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5.Why is the participation rate worrying? It is the lowest drop since 1988●“Is This the Year that Growth Takes over?2.What does the article suggest might happen in 2014? 2014 can be a breakthrough3.Why is the change in balance sheets good news? Thanks to rising stock and house4.What’s secular stagnation?●“Brisk 4thQ Lifts Hopes for Economy in 2014”1.What was the economic growth in the 4thQ of 2013? 3.2%, a deceleration from the2.What weighed down the economy in early 2013? Tax increase and federal spending
3.What happened to each of the 4 components of GDP? C: healthier growth, I:4.How do total nonfarm payrolls compare to its value before recession? They’re still5.What explains the drop in the unemp. rate? Workers dropping out of the labor force●“Yellen Sets a Familiar Direction for the Fed”1.What’s expected to happen to the Fed’s purchase of bonds? They’re going to keep2.What seems to be Yellen’s biggest concern? The financial system3.What does the Fed have a responsibility for? Financial Regulation4.How did the economy perform in the last half of 2013? 2013 gained greater traction5.What are Yellen’s views on the last to unemp. reports? She was surprised by the 6.What’s the cause of the decline in the unemp. rate? People have stopped looking for 7.What are the two causes of this decline? The changing demographics and the labor ●“As Job Creation Increases in February”1.What was the overall message of this report? Increasing job creation in February but 2.What’s the reason for the poor reports in the preceding months? A hard winter3.How many jobs were added? 175,0004.What’s the current unemp. rate? 6.7%5.Why might the rise in unemp. rate be a good thing? It is a sign that more Americans ●“Growth in the Fourth Quarter”1.What was the growth rate in the 4thQ of 2013? 2.6%, it’s slightly higher than its 2.Is this rate typical of post-recession recoveries? This rate isn’t the exciting number 3.What happened to the housing sector of te economy? It has grown over recent years4.What role are inventories expected to play in economic growth? They’re expected to 5.What was the impact of fiscal policy in growth in 2013? Sharp drops in Federal 6.What’s expected to happen to GDP in Q1of 2014? GDP is likely to pick up with spring