We measure economic growth by the percentage change in real GDP. In ge

We measure economic growth by the percentage change in real GDP. In general terms outline the course of the U.S. output growth rate in recent decades, both in terms of its trend and its changes around trend.

Pay particular attention to the stability of the growth rate.

ANSWER

Real output growth has been highly volatile around a trend of roughly 3% a year. It was relatively steady during the 1960s and consistently positive. During the 1970s and early 1980s there were numerous periods of negative growth. Since 1983, growth has been positive and relatively stable except for brief periods in 1990-1991 and 2001.