The best measure of the economy's health is the real growth rate (growth in excess of inflation) of the Gross Domestic Product (GDP). A recession is considered to be a period when GDP growth is negative for two consecutive quarters. The country's Real Gross Domestic Product is the sum of the output of goods and services that are located in the United States. GDP is a measure of total spending in three categories (consumer spending, business spending, and government purchases), and is adjusted for net exports. Net exports is negative because the United States imports far more than it exports. Consumption (consumer spending) is the most import component and comprises approximately 68 percent of GDP.…
