1. What are the complete names of the four countries that are represented by the three-letter codes?" In the following questions, refer to the countries by their full names, not by their codes. 2. Plot the evolution of the real per capita GDP of the four countries on the same chart using the log-scale. Describe the differences and similarities that you observe. 3. Compute the cyclical component of each series expressed in logs using a quadratic trend, and plot them on either 4 different line charts or on the same one. The choice is yours and it depends on which option provides a clearer approach to compare the cycles. Discuss what you see by answering the following questions . Do you observe a positive, negative or no comovement between the different business cycles? . If you observe no comovement between two business cycles, can it be explained by the two countries being poor trading partners? You may have to search the internet to answer that question. . If you observe a strong positive comovement between two business cycles, can it be explained by the two countries being strong trading partners? You may also have to search the internet to answer that question. . Do you observe common periods of recession? Are they world wide recessions? You may also have to search the internet to answer that question. Hint: Cyclical components of annual time series are simply the detrended series. 4. Compute the average annual growth rate between 1970 and 2017 for all four countries. Then, produce a scatter plot with the 1970 real per capita GDP's expressed in logs on the x-axis and the average growth rates on the y-axis (you should have four points). Discuss the results by answering the following questions: . Are the four countries converging to each other? . Using countries characteristics such as the level of education, life expectancy, economic freedom, etc., try to justify why some are converging and why some are not. You can use that data files from the module on Growth and Development or get the information from a reliable internet source (like the World Bank). 5. For this question, you have to compare the distribution of real per capita GDP across all 152 countries in the two assigned years expressed in thousands of international dollars of 2011 (the choice of units is to make the x-axis labels more readable). Create two histograms (with the option breaks 25), one for each year and interpret what you see. Do you see a difference in terms of inequality? Do you see a change in the proportion of poor countries? 6. For this question, you have to compare the distribution of real per capita GDP across all 152 countries in the two assigned years expressed logs. Create two histograms (with the option breaks 25), one for each year and interpret what you soc. Do you see a difference in terms of inequality? Do you see a change in the proportion of poor countries? Also, explain why the histograms are different when the real per capita GDP's are expressed in logs
