Years
Real GDP
(Millions of 2005
dollars)
Years
Real GDP
(Millions of 2005
dollars)
1984
6,577,100
1997
9,854,300
1985
6,849,300
1998
10,283,500
1986
7,086,500
1999
10,779,800
1987
7,313,300
2000
11,226,000
1988
7,613,900
2001
11,347,200
1989
7,855,900
2002
11,553,000
1990
8,033,900
2003
11,840,700
1991
8,015,100
2004
12,263,800
1992
8,287,100
2005
12,638,400
1993
8,523,400
2006
12,976,200
1994
8,870,700
2007
13,254,100
1995
9,093,700
2008
13,312,200
1996
9,433,900
2009
12,987,400
Recession
Recession
According to the select data, It shows
that the U.S. Real GDP is increase over
time from 1984 to 2009 in general.
 Although there is an increase in general,
we found two declines that the U.S.
economy experienced in this period.
 Those two decline periods are from 1990
to 1991 and from 2008 to 2009.





Recall that real GDP is the gross domestic
product measured in terms of the price level in
a base period.
Where GDP is the total market value of all final
goods and services produced annually within
the borders of the United States, whether by
U.S. or foreign-supplied resources.
Also, Economic growth is the expansion of real
GDP (or real GDP per capita) over time.
Recession is a period of general economic
decline, defined usually as a contraction in the
GDP for six months or longer .



Therefore, the U.S. economic is growth over
time since the real GDP increase.
the U.S. is in a recession in the period from 1990
to 1991 and from 2008 to 2009 because the
real GDP is decrease. The U.S. economic is
decline in these period.
From the graph, we found out that there was
another decline during 2000 to 2001,but the
data in the data table shows that was a slightly
increase from 11,226,000 to 11,347,200 during
this period. therefore, we believed there was a
short period of recession in some months during
this period.
Years
S&P 500 Stock Market,
Price index
Years
S&P 500 Stock Market,
Price Index
1984
167.24
1997
970.43
1985
211.28
1998
1229.23
1986
242.17
1999
1469.25
1987
247.08
2000
1320.28
1988
277.72
2001
1148.08
1989
353.4
2002
879.82
1990
330.22
2003
1111.92
1991
417.09
2004
1211.92
1992
435.71
2005
1248.29
1993
466.45
2006
1418.3
1994
459.27
2007
1468.36
1995
615.93
2008
903.25
1996
740.74
2009
1115.1
Declines
Decline
Decline
Years
S&P 500 Stock Market,
Volume
Years
S&P 500 Stock Market
Volume
1984
93063000
1997
564825400
1985
138908500
1998
722756800
1986
154548600
1999
909760900
1987
186222200
2000
1232315000
1988
141529000
2001
1303608500
1989
167968000
2002
1289625700
1990
161548000
2003
1312119500
1991
209637600
2004
1449518100
1992
229184500
2005
2057125200
1993
270900000
2006
2462849000
1994
314656600
2007
3363127500
1995
400939500
2008
5320791300
1996
451853800
2009
4163287200
Decline
Decline
Decline
The S&P 500 Composite Stock Price Index is
an index of 500 stocks from major industries of
the U.S. economy. There are indices for almost
every conceivable sector of the economy and
stock market.
 According to the data table and graph above,
there are four significant declines in the price
index during the period 1984 to 2009 for the
S&P 500 Stock Market.
 These periods are from 1989 to 1990; 1993 to
1994, 1999 to 2002 and 2007 to 2008.

Also, we found three declines during the
period 1984 to 2009 in the volume for the
S&P 500 Stock Market in the graph.
 Those periods are from 1987 to 1988, 2001 to
2002 and 2008 to 2009.
 But, we found another period has a decline
on the volume from the data table, which is
1989 to 1990. Maybe because it is just
slightly decline from 167968000 to
191548000, the graph is not detail enough
to show this decline.

According to a web, if a stock is truly in a healthy uptrend, then
volume should rise as prices rise. Negative volume divergence is
where price is rising, but volume is declining. This divergence
indicates that even though demand still outweighs supply, buyers
are not willing to pay up to own the stock.
 Therefore, we conclude that during the period 1987 to 1988 and
2008 to 2009 there were a negative volume divergence in the stock
market because the price of the stock is rise but the volume
declines.
 Also, we are conclude that the period from 1987 to 1988, 1989 to
1990, 1993 to 1994, 1999 to 2002 and 2007 to 2009, the stock
market is unhealthy because the price and volume of the stock are
not increase or decrease at the same time during those period.
 Those declines in price and volume could lead the
economy market to a recession because recall that one
of the factor that cause a recession is typically
accompanied by a drop in the stock market.

Years
New car market
average price
Years
New car market
average price
1984
76.28
1997
105.262
1985
78.337
1998
103.642
1986
79.725
1999
102.756
1987
83.628
2000
102.629
1988
83.654
2001
101.958
1989
86.535
2002
102.259
1990
87.110
2003
98.333
1991
89.799
2004
98.620
1992
91.616
2005
100
1993
94.584
2006
101.04
1994
98.885
2007
100.537
1995
101.200
2008
98.347
Decline
Declines
Years
New car market
quantity sold
Years
New car market
quantity sold
1984
51.484
1997
73.468
1985
56.624
1998
79.518
1986
56.535
1999
87.144
1987
55.939
2000
85.858
1988
58.845
2001
82.053
1989
59.873
2002
91.489
1990
54.408
2003
92.456
1991
48.818
2004
96.193
1992
54.537
2005
100
1993
59.403
2006
98.815
1994
66.69
2007
98.798
1995
66.62
2008
80.384
Declines
There were three declines in the new car
market average price during the time from
1984 to 2009.
 Those average price for new car market
declines periods were from 1997 to 2001,
2002 to 2003 and 2006 to 2008.
 There were six declines in the quantity sold
of the new car market during the time from
1984 to 2009.
 Those periods were from 1985 to 1987, 1989
to 1991, 1994 to 1995, 1999 to 2001, 2006 to
2007 and 2008 to 2009.

Years
New house market
average price
Years
New house market
average price
1984
79,900
1997
146,000
1985
84,300
1998
152,500
1986
92,000
1999
161,000
1987
104,500
2000
169,000
1988
112,500
2001
175,200
1989
120,000
2002
187,600
1990
122,900
2003
195,000
1991
120,000
2004
221,000
1992
121,500
2005
240,900
1993
126,500
2006
246,500
1994
130,000
2007
247,900
1995
133,900
2008
232,100
1996
140,000
2009
216,700
Recession
Recession
Years
New house market
quantity sold
Years
New house market
quantity sold
1984
639
1997
804
1985
688
1998
886
1986
750
1999
880
1987
671
2000
877
1988
676
2001
908
1989
650
2002
973
1990
534
2003
1086
1991
509
2004
1203
1992
610
2005
1283
1993
666
2006
1051
1994
670
2007
776
1995
667
2008
485
1996
757
2009
374
Declines
Declines
Decline
From the graph and the data table, we
found two declines in the price in the year
from 1984 to 2009
 Those declines on new house market
average price periods are from 1990 to
1991 and from 2007 to 2009.
 The new house market are faced five
declines on the quantity house sold during
those years.
 They were in the period of 1986 to 1987,
1988 to 1991, 1994 to 1995 , 1998 to 1999
and 2005 to 2009.




Recall that one piece that cause the recession
is a decline in the housing market.
The decrease on the price and quantity of
house sell on those period could cause a
recession. And the current recession from 2007
to 2009 is a good example. The house price
and quantity drop serious and make the
economy market into a serious recession.
One interesting that we discover is that the
quantity of the house sold from 2007 to 2009 is
less than from 1984 to 1985. It is so bad for our
economy.
Date
Volume
Adj. Close
Highest
10/9/2007
2,932,040,000
1,565.15
Lowest
7/24/1984
74,370,000
147.82
Friday
10/29/2010
3,537,880,000
1,183.26
S&P 500 Stock market
1800
S1
E2
1600
S2
1400
1200
1000
D2
800
600
400
200
E1
D1
0
0
1,000,000,000 2,000,000,000 3,000,000,000 4,000,000,000

From 1984 to 2007:
› Volume and price of stock increased.
› Demand stock increased shift the demand
curve to right.
› Demand dominated supply from 1984 to 2007.

From 2007 to 2010:
› Volume of stock increased while price
decreased.
› Supply stock increased shift the supply curve to
right.
› Supply dominated demand from 2007 to 2010.

http://www.businessdictionary.com/definition/priceindex.html
http://www.sec.gov/answers/indices.htm
http://www.investorwords.com/4086/recession.html
http://www.measuringworth.com/

http://finance.yahoo.com/

http://www.economagic.com/nipa.htm#U7

http://www.huduser.org/portal/periodicals/ushmc/su
mmer10/hist_data.pdf


