Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 9, Problem 1E
(a)
To determine
The graphical representation of real
(b)
To determine
The graph that indicates investment share of GDP.
(c)
To determine
Explain how the graph illustrated in Part (b) will help to understand the graph in Part (a).
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Real-Time Data Analysis Exercise
Use the links in the table below to access the data series on FRED used in this exercise*. Then use that data to answer the following questions. 1
*Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis.
For this exercise you will need to enter data from FRED for Gross Domestic Product (GDP) and Gross National Product (GNP).
Using the data from FRED, enter the values for the third quarter of 2020 (shown as 2020 – 07 - 01 in FRED) for the following series IDs. (Enter your answers exactly as they appear on FRED.)
Title
Series ID
Value
Gross Domestic Product
GDP
$
billion
Gross National Product
GNP
$
billion
The numbers of polio cases in the world are shown in the table for various years.
Year Number of Polio Cases (thousands)
1988
1992
1996
2000
2005
2007
Let f(t) be the number of polio cases in the world t years since 1980.
Use a graphing calculator to draw a scattergram of the data. Is it better to model the data by
using a linear or exponential model? Select an answer
Find an equation of f. Hint
f(t)
=
350
138
33
4
3.2
1.3
The number of polio cases Select an answer
Hint
Round the coefficients to 2 digits.
Predict the number of polio cases in 2017.
years
by Select an answer
Predict in which year there will be 1 case of polio.
Find the approximate half-life of the number of polio cases. Hint
per year.
Refer to the quarterly value of Gross Domestic Product (GDP in billions of current
dollars) in China from 2021q1 to 2023q4. You are going to analyze GDP by an additive
model with a trend component (Tt) and a seasonal component (St), and forecast GDP
using the seasonal decomposition method.
Year
Quarter
t
GDP (Y₁)
CM(4)
Detrended
2021
1
1
24920
2
2
28284.9
3
3
29128.8
?
?
4
4
32589.9
?
?
2022
1
5
27034.4
?
?
2
6
29244.7
?
?
3
7
30794.2
?
?
4
8
33399.1
?
?
2023
1
9
28442.3
?
?
2
10
30829.3
?
?
3
11
31997.6
4
12
34789
a. Use an CM(t|4) [centered moving average of order 4] series to estimate the GDP
series from t = 3 to 10.
b. Calculate the seasonal factors for each quarter with a zero mean, by first obtaining
the detrended revenue series from t = 3 to 10.
c. In this seasonal decomposition method, why is it necessary to use moving averages
to process time series data first? How about using moving average of order 5?
Knowledge Booster
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- Real-Time Data Analysis Exercise* Consider the following data for the United States: Date 2018 2019 2020 Nominal GDP (billions of dollars per year) 20,657 21,521 21,323 Price Index (base year 2010) 105.40 20,194 107.29 20,692 108.69 20,234 *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Assuming the base year is now 2020, complete the following (enter your responses rounded to one decimal place): a. Recalculate the price index for years 2018, 2019 and 2020. b. Recalculate the real GDP for the years 2018, 2019, 2020. Year 2018 2019 2020 Real GDP (billions of dollars per year, in constant 2009 dollars) Price Index (base year 2020) Real GDP (billions of dollars per year, in constant 2020 dollars)arrow_forwardThe following table reports 2018 transactions that occurred in the United States. Prices in 2018 and 2016 (base year) are also given. Use the worksheet to answer questions below. Please make sure to show any formulas you used, calculations and your work. i. Which of the listed transactions should not be used in U.S. GDP calculation? Please include one reason for each transaction you think should not be included in U.S. GDP calculation. ii. Based on the transactions you decided to include in U.S. GDP, calculate nominal GDP in 2018. ii. Based on the transactions you decided to include in U.S. GDP, calculate real GDP in 2018. iii. Calculate the GDP Deflator in 2018. Price per Unit in Price per Unit Quantity in Item 2016 in 2018 2018 (Base Year) Bottles Wine from France $15 $20 10 Boxes of Cereal produced in Battle Creek, MI $5 $4 20 Used Tires $12 $15 5 Shares of Twitter Stock $8 $10 15 Hours of Swimming Lessons at the Y in $4 $6 8 Kalamazoo, MI GDP deflator in 2018 was... Answer:arrow_forwardHow many recessions has France undergone over the years plotted in the chart? What are the two biggest recessions in terms of length and magnitude? Answer the questions from the figure given.arrow_forward
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