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Can anyone help solve the graphs using this link: https://fred.stlouisfed.org/ and use the images from the graphs to answer the following questions * Question Completion
Can anyone help solve the graphs using this link: https://fred.stlouisfed.org/ and use the images from the graphs to answer the following questions
* Question Completion Status: QUESTION 1 Is money (M) the main determinant of the price level (P) in the long run for the United States? Use the M2 and core CPI variables from the data table above to construct a graph from January 1959 to the present using LINE 1 and LINE 2. Format the graph to convert both variables to log scales and put them on separate Y-axes (left and right). NOTE: This graph is analogous to those in Figure 4 of Chapter 17 in the textbook comparing the levels of money and price in four countries with hyperinflation, except this figure is for the United States which had relatively low inflation (maximum of about 12 percent in the 1970s). Attach File Browse Local Files QUESTION 2 In the United States, M2 and core CPI have grown about the same (increased by similar proportions) over the very long run from 1959-2021. O True O False QUESTION 3 Which statement best describes the relationship between U.S. M2 and core CPI during shorter periods of time between 1959-2021. O M2 and core CPI grew at just about the same rate throughout the full long-run period O Sometimes M2 grew faster than core CPI during shorter periods, and other time M2 grew slower than core CPI O M2 grew much slower than core CPI until the very end of the period when M2 suddenly caught up O M2 grew much faster than core CPI until the very end of the period when CPI suddenly caught upQUESTION 4 In the United States, the growth of core CPI from 1959-2021 has varied much less than the growth rate of M2. (Ignore the change in M2 definition in 2020 when answering this question.) O True O False QUESTION 5 Judging from the U.S. experience with money growth and relatively low inflation (no hyperinflation) before the COVID-19 Pandemic in 2020, what is a reasonable definition of the "long run" in number of years? O About 1-2 years O About 20-25 years O At least 50 or more years O None of the above QUESTION 6 Is the velocity of money (V) stable in the United States? Use the M1, M2 and nominal GDP variables from the data table above to construct a graph from 1959:Q1 to the present using LINE 1 and LINE 2. Construct M1 velocity and M2 velocity variables, (V = PY/M = nominal GDP/money), and put them on separate Y-axes (left and right). NOTE: M1 and M2 are monethly and nominal GDP is quarterly. FRED should convert the money variables to quarterly when you construct the velocity variables, but you can convert them from monthly to quarterly in FRED by editing the line and modifying the frequency yourself if necessary. Attach File Browse Local FilesQUESTION 7 From 19592019, the velocity of M1 was about M times lower than the velocity of M2. C) True Q False QUESTION 3 Which of the following statements best describes the difference between the velocity of money before 1980 and alter 1980 (description applies equally to both M1 and M2}? C) Velocity was lei variable before 1980 (staying about the same or growing smoothly) C) Velocity was more variable before 1980 (uctuating up and down a lot) C.) Velocity varied about the same before and alter 1980 0 None of the above QUESTION 9 What happened to veIDCity (both M1 and M2) after the Financial Crisis 012007-2009 that had never happened before? C Velocity declined steadily and dropped precipitously during the COVID719 Pandemic C.) Velocity increased dramatically C) Velocity uctuated up and down a lot more C.) Velocity stayed about the same QUESTION 10 Is real potential GDP (Y ) stable in the United States? Use the real potential GDP variable from the data table above to construct a graph from 1950:Q1 to 2031:Q4 using LINE 1. Construct the growth rate ("Percent change from a year ago") of real potential GDP. NOTE: Real potential GDP data after 2022 are forecasted by the Congressional Budget Office (CBO), which constructs these data. Attach File Browse Local Files QUESTION 11 Which statement best describes the value of potential real GDP growth from the 1950s to today? O Potential real GDP tended to decline, fluctuating between 1 and 5 percent per year O Potential real GDP was steady at around 3 percent per year Potential real GDP increased steadily from about 0 to 10 percent per year O None of the above QUESTION 12 What is most likely the best explanation for what happened to potential real GDP after 2000? O International trade (exports and imports) declined precipitously around the world O Determinants of productivity (technology A and factors of production like K/L) grew more slowly O Nothing. Potential real GDP was about the same after 2000 as before O The U.S. government strengthened and improved property rights and the legal systemQUESTION 13 The Congressional Budget Office (CBO) is optimistic that U.S. potential real GDP will increase significantly in the future. True O FalseStep by Step Solution
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