3. Plot a graph of quarterly data for real GDP and full employment GDP from 1970 to...
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3. Plot a graph of quarterly data for real GDP and full employment GDP from 1970 to the present. (In the FRED database, full-employment GDP is called Real Potential GDP.)
Which variable is “smoother”? How would you characterize the volatility of real GDP before 1980 compared with after 1980?
From 1950 to 2010, how would you characterize the overall movements in the growth rate of real full-employment GDP?
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