Shock GDP

The investment shock had an impact primarily on industrial production and did not quickly spread to other sectors of the economy-consumer spending and
services remained strong in the first part of 2001, The result was a slowdown in the rate of growth of March, unemployment reached its peak. This peak
was the reason the NBER dated the beginning of the recession in March.
The economy might very well have recovered quickly from this initial shock. There was a tax rebate on the way, the Federal Reserve had cut interest rates
dramatically startingin January and countinued through out the summer. In addition, the slowdown had not spread much beyond manufacturing.
Then came the attacks on September 11. The IMF recently estimated the impact on the U.S. economy will be in range of 21 billion, and they lowered their forecast
of GDP growth in 2002 by 1.5%. While the weakness had been narrow, September 11 greatly impacted the consumer-in particular, airlines, hotels and other
travel services were hit. As the shock spread throughout the economy, unemployment increased, and in the third quarter GDP fell by 1.1%.
September 11 can therefore be seen as the second shock to the economy that pushed it over the edge.

Source : Read while you breathe,headmade educational media.

Summary

The expense of consumer reduce, it caused GDP reduce in some industrial and then it caused to have unemployment increase.

Comment

I think the government will reduce interest and stimulate people spending increase.

Mr.Nuttaphon Vijitpaisan
ID#1500207731 No.19