Managerial Economics Real GDP Expenditures Forecast for Fourth Quarter of 1999

The year is 1999 and it is a year unlike any other. Never before will economists experience first hand the type of transition from one year to the next. From the 20th century to the 21st century. Never has the economy been more robust during peacetime or been unable to answer the simple question of “why?”

We are entering a period unheard of in American economics or world economics for that matter. We are in the longest peacetime progression in our history of our nation. Signs for a recession have been pushed back, and back, and back. In fact many economists will refuse to comment on a possible recession since the economy seems to be breaking all known economic laws.

Unemployment is at a 30 year low and continues to drop. Inflation is minimum, if even apparent in some cases. And the Federal Reserve hasn’t really raised interest rates. Can the economy keep going at this rate? No, it can’t; it will only get better.