current prices where real GDP is the total value of goods and services expressed in constant prices (we deflate nominal GDP by a price index called the GDP deflator). The links for the data used in this problem are below. Nominal GDP GDP Deflator (P) Let us go back to the 1981 - 1982 recession - review the NBER site. Note that officially, this recession began in third quarter of 1981 and ended in the fourth quarter of 1982. a) (5 points) Calculate the percent change in nominal GDP during this recession (for all calculations use the data from 1981-07-01 to 1982-10-01 (GDP data is quarterly). Please show all work and round to two decimal places. % ANGDP : b) (5 points) Now calculate the percent change in the GDP price deflator during this recession. % Deflator - c) (5 points) Now calculate the percent change in real GDP using the formula: BenQJapanese Consumer Price Index (CPI) History - 1970 to 2015 Historical Consumer Price Index (CPI) for Japan (1970 to 2015) Last Update: December 26, 2014 Next Update: January 30, 2015 Year jan feb mar apr may jun jul aug sep oct nov dec ann 2014 100.7 100.7 101 103.1 103.5 103.4 103.4 103.6 103.9 103.6 103.2 2013 99.3 99.2 99.4 99.7 99.8 99.8 100 100.3 100.6 100.7 100.7 100.9 100.0 2012 99.6 99.8 100.3 100.4 100.1 99.6 99.3 99.4 99.6 99.6 99.2 99.3 99.7 2011 99.5 99.5 99 8 99.9 99.9 99.7 99.7 99.9 99.9 100 99.4 99.4 99.7 2010 100.1 100 100.3 100.4 100.3 100.1 99.5 99.7 99.9 100.2 99.9 99.6 100 2009 101.1 100.8 101.1 101.2 101 100.8 100.5 100.8 100.8 100.4 100.2 100 100.7 2008 101.1 100.9 101.4 101.3 102.1 102.6 102.8 103.1 103.1 103 102.1 101.7 102.1 2007 100.4 99.9 100.2 100.5 100.8 100.6 100.5 101 101 101.3 101.1 101.3 100.7 2006 100.4 100.1 100.3 100.5 100.8 100.8 100.5 101.2 101.2 101 100.5 100.6 100.7 2005 100.5 100.2 100.5 100.6 100.7 100.3 100.2 100.3 100.6 100.6 100.2 100.3 100.4 2004 100.3 100.3 100.5 100.5 100.6 100.8 100.5 100.6 100.9 101.4 101.2 100.7 100.7 2003 100.6 100.3 100.6 100.9 101.1 100.8 100.6 100.8 100.9 100.9 100.4 100.5 100.7 2002 101 100.5 100.7 101 101.3 101.2 100,8 101.1 101.1 100.9 100.9 100.9 101 2001 102.5 102.1 101.9 102.1 102.2 101.9 101.6 102 101.8 101.8 101,3 101.2 101.9 2000 102.8 102.5 102.7 102.9 103 102.8 102.5 102.8 102.7 102.7 102.4 102.5 102.7 1999 103.5 103.1 103.2 103.7 103.7 103.4 103 103.3 103.6 103.8 103.2 102.9 103.4 1998 103.3 103.2 103.6 103.8 104.1 103.7 103.1 103 103.8 104.5 104.4 104 103.7 1997 101.4 101.2 101.3 103.4 103.6 103.6 103.2 103.3 104 104.3 103.6 103.4 103 1996 100.8 100.6 100.8 101.4 101.6 101.3 101.2 101.1 101.5 101.7 101.4 101.5 101.2 1995 101.3 101 100.9 101.2 101.4 101.3 100.8 100.9 101.5 101.2 100.9 100.9 101.1 1994 100.8 100.8 101.2 101.4 101.5 101.1 100.7 101.1 101.4 101.9 101.6 101.3 101.2 1993 99.5 99.6 99.9 100.6 100.7 100.6 100.9 101.1 101.2 101.1 100.6 100.7 100.5 1992 98.3 98.2 98.7 99.7 99.8 99.7 99 99.3 99 7 99.8 99.6 99.6 99.3 1991 96.6 96.3 96.8 97.4 97.8 97.5 97.4 97.6 97.7 98.8 99 98.5 97.6 1990 92.9 93 93.4 94.1 94.6 94.2 94.1 94.4 95.2 96.2 96 95.9 94.5 1989 89.9 89.7 90.1 91.7 92.2 92.1 92 91.9 92.7 93.4 92.4 92.5 91.7 1988 89 88.8 89.1 89.6 89.7 89.5 89.3 89.6 90.3 90.7 90.4 90.1 89.7 3. (20 points) Real vs nominal GDP. When we get to chapter three we consider a production function where the output of all our factors of production is of course real GDP. Recall that Nominal GDP is the total value of goods and services produced at BenQc) (5 points) Now calculate the percent change in real GDP using the formula: %ARGDP = %% (NGDP/P) = %ANGDP - %AP where RGDP = real GDP: NGDP= nominal GDP: P = the GDP deflator %ARGDP d) (5 points) What is this period often referred to and why (starts with S!)? BenQLesson 02 Homework Links Link URL graph from the FRED site http:/research.stlouisfed.org/fredgraph.png?g=1Vw National Bureau of Economic Research (NBER) http:/www.nber.org/ site see the FRED website http://research.stlouisfed.org/fred2/ Nominal Wages http:/research.stlouisfed.org/fred2/data/AHETPL.txt Price index CP http://research.stlouisfed.org/fred2/data/CPIAUCSL.txt *pro-cyclical' http://en.wikipedia.org/wiki/Procyclical Investopedia site http://www.investopedia.com/ask/answers/177.asp#axzz1ju5rusaa Employment http://research.stlouisfed.org/fred2/series/PAYEMS?cid-11 here (Guardian article) http:/www.theguardian.com/business/2015/jan/22/quantitative- easing-around-the-world-lessons-from-japan-uk-and-us unleash a massive QE programme http://www.theguardian.com/business/2013/apr/04/japan- quantitative-easing-70bn Click Here ( Nominal one year rates ) http://research.stlouisfed.org/ fred2/data/Gs1.txt Click Here (Price index CPI) http://research.stlouisfed.or g/fred2/data/CPIAUCSL.txt Click Here (Expected Inflation ) http://research.stlouisfed.org/tre data/MICH.txt Nominal GDP http://research.stlouisfed.org/fred2/data/GDP.txt GDP Deflator http:/research.stlouisfed.org/fred2/data/GDPCTPlext NBER site http://www.nber. Previous O Ben