Home » For this question you need to access data from the Federal Reserve Bank of St. Louis FRED economic database (https://fred.stlouisfed. Look for…

For this question you need to access data from the Federal Reserve Bank of St. Louis FRED economic database (https://fred.stlouisfed. Look for…

For this question you need to access data from the Federal Reserve Bank of St. Louis FRED economic database (https://fred.stlouisfed.org). Look for quarterly data for USA for the 2003-2017 period.

1A) Plot, in the same graph, the evolution of real GDP (Y ) and nominal GDP ($Y ). Explain why these time series are different.

1B) Plot the evolution of each component of real GDP: C (“Real Personal Consumption Expenditures”), G (“Real government consumption expenditures and gross investment”), I (“Real Gross Private Domestic Investment”) and NX (“Real Net Exports of Goods and Services”). Classify each of these components as pro-cyclical, counter-cyclical or a-cyclical. Briefly describe the business cycle in USA, focusing on the 2008-2009 crisis

1C) Construct a bar-chart for the ratio of each component to GDP for the year 2010: C/Y , G/Y , I/Y and NX/Y (hint: although not identical because of different sources, your results should be consistent with column 2 of table 3-1 in Chapter 3). Rank these components in terms of size.

1D) Plot the time series for the ratio of each component to GDP from part (c). Provide a brief comment on the evolution of the size of each of these components.

1E) Construct a scatter-plot with Real Personal Consumption Expenditures on the vertical axis and Real GDP on the horizontal axis. Fit a linear trend. Does the data support the existence of an aggregate consumption function?

2) (20 points) Is the goods market model introduced in Chapter 3 consistent with the data you presented in Question 1? Explain using graphs, intuition and algebra. If you need to add additional data, feel free to do so (hint: don’t discuss whether the assumptions of the model hold in reality (they don’t). Focus on whether the relationship between variables implied by the model seems consistent with the data). 

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10