1 Visit the Penn World Table and obtain data on real GDP per person and consumption as...
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1 Visit the Penn World Table and obtain data on real GDP per person and consumption as a percentage of real GDP for the United States, China, South Africa and Mexico since 1960. a In a spreadsheet, multiply your real GDP data by the consumption percentage and divide by 100 to obtain data on real consumption expenditure per person. b Make graphs like the figure in Box 24.1 on p. 531 to show the relationship between consumption and real GDP for these four countries. c Based on the numbers you’ve obtained, in which country do you expect the multiplier to be largest (other things remaining the same)? d What other data do you need to calculate the multipliers for these countries?
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