Lagged GNP growth rates are not good predictors of future GNP growth rates, but other factors like the consumption/GNP ratio can forecast long-term GNP growth. Labor income and stock prices also show similar patterns. Changes in GNP in response to shocks are mostly temporary if consumption remains constant. Stock prices also react temporarily to changes in dividends, indicating a shift in discount rates. These findings have implications for how we analyze trends in GNP and labor income, as well as for understanding why the permanent income hypothesis may not always hold true.