U.S. Economy Expands at Slowest Pace in Three Years

The transcript discusses the unexpected downside in GDP growth, highlighting the Atlanta Fed's revision of GDP forecasts and the historical context of first quarter GDP performance. It explores the impact of seasonality, inventories, and consumption on economic growth, and forecasts a potential rebound in the second quarter driven by business investment and global growth. The discussion also touches on long-term growth factors such as population, labor force, and productivity, emphasizing the need for investment in education and capital expenditure.

What was the revised GDP nowcast by the Atlanta Fed mentioned in the video?

• 0.2%

• 2.0%

• 3.8%

• 1.5%

Which factor was highlighted as a potential positive contributor to GDP in the second quarter?

• Reduced imports

• Higher consumer savings

• Business investments

• Increased government spending

What percentage did inventories subtract from the first quarter GDP rate?

• 0.5 percentage points

• 0.93 percentage points

• 1.2 percentage points

• 1.5 percentage points

According to the video, what is necessary for long-term GDP growth?

• Increased taxation

• Higher interest rates

• Growth in population and productivity

• Decreased government regulation

What challenge related to labor force growth is mentioned in the video?

• High unemployment rates

• Immigration politics

• Lack of technological advancement

• Decreasing birth rates