Determine 1: US protection consumption and funding, in bn.Ch2012$ SAAR (blue). NBER outlined peak-to-trough recession dates shaded grey. Word 1960-2001 knowledge transformed to 2012$ utilizing index. Supply: BEA, NBER, and writer’s calculations.
Determine 2: US protection consumption and funding, in bn.Ch2012$ SAAR (blue), in bn.$ (tan). NBER outlined peak-to-trough recession dates shaded grey. Supply: BEA, NBER, and writer’s calculations.
Backside line. It’s helpful to grasp the distinction between nominal and actual magnitudes.