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In this task you will take data GDP, interest rate and price level data and produce data to plot results on changes in the RBA's
In this task you will take data GDP, interest rate and price level data and produce data to plot results on changes in the RBA's target cash rate against both changes in outputs deviation from trend and changes in the inflation rate. The idea is that the coefficients in the interest rate equation that we have been using in class have these interpretations so let's see what the data looks like. Download the file Assignment2Data.xlsx. You should see dates of the observations in column A, a measure of GDP in column B, the consumer price index in column C and the RBA's target cash rate in column D. 1. Populate column E with the change in the target
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