REAL GPD OVER RECENT HISTORY
Now that we know how real GDP is. defined and measured, let’s look at what this macroeconomic variable tells us about the recent history of the United States. Figure 2 shows quarterly data on real GDP for the u.s. economy since 1965.
The most obvious feature of these data is that real (GDP grows over time. The real GDP of the U.S. economy in 2004 was almost four times its 1965 level. Put differently. the output of goods and services
Figure 2 Real GDP in the United States
This figure shows quarterly data on real GDP for .the US. economy since 1965. Recessions-periods of falling real GDP-are marked with the shaded vertical bars.