Question

In: Economics

Introduction This exercise deals with the difference between nominal and real GDP, and also explores the...

Introduction

This exercise deals with the difference between nominal and real GDP, and also explores the characteristics of the components of GDP over time.

Instructions Go to BEA.gov and in the U.S. Economic Accounts find Table 1.1.5 (nominal GDP) and Table 1.1.6 (real GDP) and download them for the period 1960 to the latest available year in annual frequency (yearly).

In Excel plot line 1 of both tables within a single graph. Where do they cross? Explain what is the relationship between real and nominal GDP before and after the crossing point? Why? (25 points)

In Excel, using the formula “=ln( )” take the natural log of real GDP (line 1) and plot the change in GDP from one year to the next measured by ln(GDP(t)) - ln(GDP(t-1)). (If you multiply by 100, it will be a percentage.) (25 points)

In Excel using nominal GDP (table 1.1.5) calculate and plot the GDP shares of Consumption (line 2), Investment (line 7), Government (line 22), and Net Exports (line 15). For example, the consumption share is C/Y or line 2 / line 1. (25 points)

Explain the relationship between national saving and net exports. (25 points) All the charts should have a title and have the axis labeled (with time in the x-axis, and the label of the variable(s) and units in the y-axis).

Solutions

Expert Solution

Unfortunately, there is no way to share the excel.


Related Solutions

This exercise deals with the difference between nominal and real GDP, and also explores the characteristics...
This exercise deals with the difference between nominal and real GDP, and also explores the characteristics of the components of GDP over time. Show all work and formulas Instructions Go to BEA.gov and in the U.S. Economic Accounts find Table 1.1.5 (nominal GDP) and Table 1.1.6 (real GDP) and download them for the period 1960 to the latest available year in annual frequency (yearly). In Excel plot line 1 of both tables within a single graph. Where do they cross?...
This exercise deals with the difference between nominal and real GDP, and also explores the characteristics...
This exercise deals with the difference between nominal and real GDP, and also explores the characteristics of the components of GDP over time. Instructions- Go to BEA.gov and in the U.S. Economic Accounts find Table 1.1.5 (nominal GDP) and Table 1.1.6 (real GDP) and download them for the period 1960 to the latest available year in annual frequency (yearly). In Excel plot line 1 of both tables within a single graph. Where do they cross? Explain what is the relationship...
What is the difference between Nominal GDP and Real GDP? How can the ratio of Nominal...
What is the difference between Nominal GDP and Real GDP? How can the ratio of Nominal to Real GDP indicate how much inflation an economy has been experiencing?
What is GDP? What is the difference between the nominal GDP and real GDP? Explain why...
What is GDP? What is the difference between the nominal GDP and real GDP? Explain why comparing the GDP’s of various nations might not tell you which nation’s people are better off.
(15 pts) (a) What is the difference between actual (nominal) GDP and real GDP? a. Which...
(15 pts) (a) What is the difference between actual (nominal) GDP and real GDP? a. Which is used to track the business cycle: nominal or real GDP? b. Which type of unemployment involves workers with marketable job skills: frictional or structural? c. Define “natural unemployment.” d. List two items that are excluded from GDP.
Answer the following macroeconomics questions. a) What is the difference between nominal GDP and real GDP?...
Answer the following macroeconomics questions. a) What is the difference between nominal GDP and real GDP? Which one of them is used to calculate the economic growth rate? Justify your answer. b) Give the equation used to calculate the unemployment rate. State the different types of unemployment. In your opinion, which type is the most problematic one? Justify your answer. c) Governments may achieve certain economic goals; say controlling inflation, by implementing fiscal and/or monetary policies. Explain briefly the difference...
3. Inflation a) What is the difference between real and nominal GDP? _______________________________________________________________ _______________________________________________________________ b) Suppose...
3. Inflation a) What is the difference between real and nominal GDP? _______________________________________________________________ _______________________________________________________________ b) Suppose the base year is 2005, and the only goods in the economy are apples and bananas. In 2005 both apples and bananas cost $1, and 100 apples and 100 bananas are produced. In 2006, apples cost $20 and bananas cost $5, and 50 apples and 200 bananas are produced. 1. What is nominal GDP in 2005? _______ In 2006? _______ 2. What is real...
What is the difference between nominal and real GDP? What is unemployment? Which types of unemployment...
What is the difference between nominal and real GDP? What is unemployment? Which types of unemployment do you know? Which type of unemployment can be considered as acceptable? What should be its level? How is inflation calculated? What is the optimal level of inflation in the economy? What is “bad inflation”? Phillips curve. Which instruments of monetary policy do you know? Which instruments of fiscal policy do you know? What is contractionary/expansionary monetary policy? In which stage of business cycle...
4. What is the difference between the growth rate of nominal GDP, growth rate of real...
4. What is the difference between the growth rate of nominal GDP, growth rate of real GDP and growth rate of real GDP per capita? What are the determinants of the last one? Find out the growth rate of U.S. Real GDP per capita for 1980-2019 and plot them into a graph.
1. What’s the difference between real and nominal GDP? 2. What are the four elements of...
1. What’s the difference between real and nominal GDP? 2. What are the four elements of GDP? Which is the most important? 3. What is the formula for the expenditures method and does it involve all income earned from sources in a country, or all expenses incurred from sources in a country?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT