1 HP lterFor this question you are asked to compute the HP lter decomposition of GDP. You are askedto solve the minimization problem directly with using built-in functions in Excel. Refer to the guideat the end of this problem set for a step-by-step guide. Some additional notes:1. Use quarterly data from 2000 to 2018 included.2. Use the variable: Real Gross Domestic Product [GDPC1] as your GDP data. You can ndthis variable in FRED http://research.stlouisfed.org/fred2/.3. Include two graphs: (1) one for the trend together with the original data; (2) the second onereserve it for the cycle like below.

Real GDP and HP Trend Ln Real GDP Do HP Trend Log Scale 8.5 7.5 1950 1960 1970 1980 1990 2000 2010 202 Source: FRED (GDPC1)