Question

2. Download the annual real GDP and GDP data of the United States 1950-2018 from FRED. For the real GDP, the data online is chain-weighted and uses 2012 as the base year. In the lecture hursday, I showed you the detailed method and calculated the new chain-weighted real GDP when 1990 is the base year. You are required to calculate a new sequence of chain- weighted real GDP given a new base-year. The base year you should use in your homework is idiosyncratic and related to your Buck ID. What you need to do is to find the largest two numbers in your Buck ID. For example, for a student whose Buck ID is 500052417, the base year him/her should use is 1975, since the largest number in the Buck ID is 7 and the second largest number is 5. You should report the base year you use when you submit your homework. You should submit a Excel file containing all the raw data and your calculation, similar to the one I uploaded on Carmen. 2 points extra credit will be assigned if you can draw a graph using the Excel to present your results.

Answer 1

(First question - depends on your Buck ID which you have not provided. Question cannot be answered)

(Short Answer Question 1)

For QI-2013:

(1) C ($B) = Consumption of goods + Consumption of services = 3,873 + 7,500 = 11,373

(2) I ($B) = Fixed investment + Change in inventories = 2,103 + 48 = 2,151

(3) G ($B) = Federal expenditure + State and local expenditure = 1,586 + 1,846 = 3,432

(4) (X - M) ($B) = Exports - Imports = 2,204 - 2,747 = - 543

(5) GDP ($B) = C + I + G + (X - M) = 11,373 + 2,151 + 3,432 - 543 = 16,413

NOTE: As HOMEWORKLIB answering Policy, 1st question is answered.