3. Plot a graph of quarterly data for real GDP and fullemployment GDP from 1970 to the...

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3. Plot a graph of quarterly data for real GDP and fullemployment 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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Macroeconomics Global Edition

ISBN: 978-1292318615

10th Edition

Authors: Andrew Abel ,Ben Bernanke ,Dean Croushore

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