Everything you need to know from lecture #5 to answer should be in the question

3. This question studies how labor income has evolved over the past 50 years relative to GDP. a. Using FRED, acquire the following data series: Gross Domestic Product (FRED Code "GDP") and Compensation of employees (FRED Code "W209RC1" ) (Note, I will call this Labor Com- pensation). For convenience, work only with annual frequencies. For the aggregation method use "end of the period." Construct a similar table as that displayed below, by computing the annual growth rates by decade of GDP and Labor Compensation. 1970-1980 1980-1990 1990-2000 2000-2010 2010-2020 1970-2020 Growth Rate of GDP Growth Rate of Labor Compensation Are these data consistent with the idea from Lecture # 5 that the marginal product of labor should grow at a similar rate as output per worker? If at all, why or why not? b. Using FRED, download some additional data: Proprietors' income with inventory valuation and capital consumption adjustments: Nonfarm (FRED Code "A045RC14027NBEA" ) and Propri- etors' income with inventory valuation and capital consumption adjustments: Farm (FRED code "B042RC1A027NBEA" ) Assuming that Labor Compensation and these two measures of Proprietors Income account for the amount of income attributed to labor, construct a graph of "Labor's Share of Income" (that is labor income divided by GDP) showing the its evolution between 1970 and 2020. In your report, please address several questions about this graph. .. Revised: February 3, 2021 Economics of Global Business Problem Set #1 . Is there any connection between the findings in Part a and this graph? . What does this graph imply about the amount of income attributed to capital? . Do you think it is correct to attribute all of Proprietor's income as a payment to labor? . Do these findings have any implications for income inequality? . Do you notice any recent trend on the Labor Share of income (prior to the current recession)? How has the current recession impacted labor share so far? Explain in detail