ECON 601 Assignment 1 Due Date: October 17, 2023 1. Using data from the St. Louis Federal Reserve (https://fred.stlouisfed.org/) (or other sources but you need to cite the source of the data), analyze real GDP, a. Find the most recent values and values from one year earlier for nominal Gross Domestic Product (GDP) and the GDP Implicit Price Deflator. b. Using the data from above, compute the real GDP for the most recent period and for the period one year earlier. c. Growth in the economy is usually measured as growth in real GDP. Using the two computed real GDP values, find the growth rate of the economy from the first period to the second period. d. Using the result in (a), calculate the inflation rate for the most recent year. 2. Using data from the St. Louis Federal Reserve (https://fred.stlouisfed.org/), analyze real and nominal interest rates, a. Find the most recent values for the following four variables: i. 15-Year Fixed Rate Mortgage Average in the United States (MORTGAGE15US) ii. Moody's Seasoned Aaa Corporate Bond Yield (DAAA), iii. the 3-Month Treasury Bill: Secondary Market Rate (TB3MS) iv. University of Michigan Inflation Expectation (MICH). b. Using the most recent expected inflation rate, compute the expected real interest rate for each of the above three borrowing rates (for i, ii and iii). c. Suppose the actual inflation rate is less than the expected inflation rate. Will borrowers or lenders be made better off? 3. At the Treasury Web site (https://home.treasury.gov/ ), go to the DATA tab and find INTEREST RATES. Then locate the Daily Treasury Par Yield Curve Rates: (https://home.treasury.gov/resource-center/data-chart-center/interest- rates/TextView?type=daily treasury yield curve&field tdr date value month=202309 ) a. For the most recent date, graph the yield curve. Then explain how yield changes with the maturity of the Treasury security. b. Graph a yield curve for any one date in February 2020. Indicate what date you choose