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Go to FRED httpsfred.stlouisfed.org[, one of the best websites that provides macroeconomic data for several countries. You can watch a short tutorial on using FRED
Go to FRED httpsfred.stlouisfed.org[, one of the best websites that provides macroeconomic data for several countries. You can watch a short tutorial on using FRED here, but you don't need to (it's pretty intuitive): https:[[tinyco.re[3209844 a) b) C) d) 1') Download Real Gross Domestic Product (Real GDP) for the United States (the series starts from 1947). [you can just type the name in the search bar] Download Real Potential Gross Domestic Product for the United States (the series starts from 1949). Compute what we call the Output Gap, as follows: 100*(Real GDP - Real Potential GDP)/ Real Potential GDP You can use Excel to compute it. Show a graph of the Output Gap series that you obtain. Discuss which periods in the graph can be considered 'Recessions'. Which one is the worst recession over the period you have considered? Which one is the second worst? Which one can be considered a mild recession? Also considering the graph, what do you think are the main determinants of business cycles, that is, the main determinants of booms and busts in economic activity? Now download the series for the Unemployment Rate (always from FRED). Do you think there's a correlation between the Output Gap and the Unemployment Rate
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