...avoid a crisis and continue to muddle through.

As shown in Figure 1, output growth in the United States decelerated for the fourth straight year during 2007. On a fourth- quarter to fourth-quarter basis, real gross domestic product (GDP) will probably grow by about 2.7 percent. By comparison, growth in 2003 reached 3.7 percent. The labor market shows a similar, but delayed, pattern (see Figure 2). During 2005, the economy was adding over 210,000 jobs each month. This slowed slightly to 190,000 per month in 2006, and has fallen...

NOTE: All illustrations and photos have been removed from this article.




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