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Question 15 0.1 pts Go the FRED website, then find and download Real GDP (Quarterly, Seasonally Adjusted, Billions of Chained 2012 Dollars) from 2000-10-01 to 2005-10-01. Then index Real GDP with 2000-10-01 (fourth quarter of 2000) as the base time period How many quarters did it take before Rea GDP has risen 2% above its local peak in the fourth quarter of 2000? O 2 0 4 0 7 0 10

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Answer #1

Real Gross Domestic Product (GDPC1) DOWNLOAD Units: 1Y I 5Y 1 10Y I Max | 2000 06 30 | to 2005 09 29 EDIT GRAPH Q3 2005: 14,972.054 Updaled: Dex 21, 2018 more) Blons of Chalned 2012 Dollars, Quarterly Seasonally Adjusted Annual Rate FRED th _ Real Gross Domestic Product 15,000 14,800 14,500 14,400 14,200 14,000 13,800 13,600 13,400 13,200 13,000 Q3 2005: 14972.054 Q3 2000 Q1 2001 Q3 2001 Q1 2002 Q3 2002 Q1 2003 Q3 2003 Q1 2004 Q3 2004 Q1 2005 Q3 2005 Shaded areas indicate US, recessions Source: U.S. Bureau of Economic Analysis fred stlouisfed org

Option 3 - 7 quarters

As can be seen from the picture, that it took almost 7 quarters for the real GDP to rise 2% above its local peak. The real GDP in Q4 2000 is around 13260 and 2% of it would mean 265 and an increase of 265 means the real GDP becomes13525. Hence in Q3 2002 it is more than 13525 and it takes 7 quarters to rise 2%.

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