Macroeconomics: Economic Events and Policies from 2000 to 2010

Macroeconomics
Name of the Student
Name of the University
Course ID

Introduction
• Series of economic events from 2000 to 2010
• Two significant events
• Tech bubble bust in 2001
• Housing crisis in 2008
• Recessions damage the economic growth.
• More severe impact than the great depression
• Fiscal and monetary policy actions

Economic Growth
• GDP: measures of economic activity
• Real GDP was 13.13 trillion dollars in 2000
• Growth rate was 4.1 percent
• Growth declined to 1 percent in 2001
• Because of tech bubble burst
• 9/11 attacks, war on terror, Iraq war
• Slow recovery Figure 1: Real GDP and
associated GDP growth rate from
2000 to 2010

Economic Growth
• Growth slightly declined to 3.5 percent in 2005
• Hit of Katrine and introduction of Bankruptcy act
• Growth further declined to 2.9 percent
• Tight monetary policy
• Increase in interest rate
• Economic downturn since the end of 2007
• Financial crisis that fully occurred in 2008