GDP Drops 4.8% Amid Outbreak

The video discusses the economic impact of COVID-19, highlighting a 4.8% decline in GDP during the first quarter of the year, marking the first negative GDP reading since 2014. The decline is attributed to stay-at-home orders and changes in consumer behavior. Economic forecasts predict further GDP decline in the second quarter, but a potential rebound in the third and fourth quarters. The report coincides with rising virus cases and unemployment, as governments plan economic recovery.

What was the annual rate of GDP decline in the first quarter of the year?

• 5.6%

• 6.4%

• 3.2%

• 4.8%

Which event marked the worst GDP shrinkage since the Great Recession?

• The 2014 economic downturn

• The 2008 financial crisis

• The 2020 COVID-19 pandemic

• The 2016 market crash

What was a major factor contributing to the GDP decline in the first quarter?

• Growth in the technology sector

• Stay-at-home orders due to COVID-19

• Rise in consumer spending

• Increase in exports

How much did consumer spending drop in the first quarter?

• 8.8%

• 7.6%

• 6.4%

• 5.2%

What did President Trump predict for the GDP in the third and fourth quarters?

• A continued decline

• A slight increase

• A big rise followed by an incredible fourth quarter

• Stagnation