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2. What is the difference between the relative price (focus of microeconomics) and average price (focus of macroeconomics) of goods and services? Use the implicit
2. What is the difference between the relative price (focus of microeconomics) and average price (focus of macroeconomics) of goods and services? Use the implicit price deflators for personal consumption expenditures (PCE) of goods and services (DPCERD3Q086SBE), PCE of goods (DGDSRD3Q086SBEA), and PCE of services (DSERRD3Q086SBEA) to construct the following graphs: a. The levels of the prices of total PCE, goods PCE, and services PCE from 1947-present (use LINE 1, LINE 2, and LINE 3). b. The relative price (ratio) of goods versus price of services from 1947-present (use LINE 1 only and multiply by 100 so the base year is 2012=100) and the total PCE price deflator for goods and services (use LINE 2). c. The level of the total PCE price deflator and the level of real PCE, or quantity of PCE (use LINE 1 and LINE 2; use the FORMAT tab to change the Y-Axis Position for LINE 2 to be "Right" instead of "Left")
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