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To: onemiddleamerican
I'm not to smart on this stuff either but I do believe Gross Domestic Production (GDP) as measured in US dollars is used to determine recession/recovery. So lets say in 3rd quarter 2008 the GDP was 15 trillion dollars/yr and then the recession hit so that 4th quarter 2008 GDP was 12 trillion/per then it (recession) bottomed out say 2cd quarter 2009 at 10 trillion/yer. So the bottom of the recession is a GSP of 10T/yr. Now if we have a GDP of 11T/yr then we are in recovery even thou the GDP is way below what it was in 2008. All they look at is the direction of the GDP graph over 2 quarters of a year, up=recovery, down=recession. Hope that helps and I hope it is mostly correct. lol.

Also the GDP numbers are susposed to be corrected for inflation but I seriouly doubt that since gov seems to think there is no inflation.

79 posted on 12/03/2010 8:16:28 AM PST by jpsb
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To: jpsb
Also the GDP numbers are susposed to be corrected for inflation but I seriouly doubt that since gov seems to think there is no inflation.

They pick-and-choose what elements to include in the inflation numbers. Because it makes the number too high, they usually do not include food or fuel. Therefore, it is easier to make the number appear to be manageable.
83 posted on 12/03/2010 8:37:14 AM PST by TomGuy
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To: jpsb
Also the GDP numbers are susposed to be corrected for inflation but I seriouly doubt that since gov seems to think there is no inflation.

Also, isn't government spending included in GDP? So if the gov't spends and extra couple-a tril, they could, in affect, create a recovery out of thin air right?
86 posted on 12/03/2010 9:01:04 AM PST by mmichaels1970
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