US Economy Shrinks for Second Straight Quarter

The video discusses the current economic situation, highlighting a 0.9% decline in GP and a slight increase in jobless claims. Seasonal factors like auto plant shutdowns complicate the analysis. The GDP shows a drop due to declines in private inventory investment, residential fixed investment, and federal government spending, despite increases in exports and personal consumption. This marks the second consecutive quarter of contraction, raising concerns about a potential recession, which will be addressed by Janet Yellen in a news conference.

What was the reported change in the initial jobless claims?

• Decreased to 200,000

• Increased to 256,000

• Increased to 300,000

• Remained at 250,000

What was the percentage increase in personal consumption according to the GDP breakdown?

• 0.5%

• 1%

• 1.5%

• 2%

Which of the following is NOT mentioned as a factor contributing to the GDP drop?

• Federal government spending

• Residential fixed investment

• Increased consumer savings

• Private inventory investment

What helped to balance out the negative GDP number?

• Increase in exports and personal consumption

• Decrease in federal spending

• Decrease in residential investment

• Increase in private inventory investment

What challenge does Janet Yellen face in her news conference?

• Explaining the rise in jobless claims

• Addressing the increase in personal consumption

• Explaining the GDP price index

• Discussing the consecutive quarters of GDP contraction