MACROECONOMICS W/ MY ECON LAB
MACROECONOMICS W/ MY ECON LAB
6th Edition
ISBN: 9781323460689
Author: Hubbard
Publisher: PEARSON C
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Chapter 13, Problem 13.4.6PA

Sub part (a):

To determine

The changes in real GDP and potential GDP during 2015 and 2016.

Sub part (b):

To determine

The changes in real GDP and potential GDP during 2015 and 2016.

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Briefly analyse the impact on an economy of a prolonged period of deflation
Briefly explain in a paragraph or two why you would rather be a borrower during a period of unexpected rising inflation, and a lender during a period of unexpected declining inflation.
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. 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
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