Please use provided table of the "magic equation" to answer question 5.*Please take into account the "hint" also provided.
4) (10 pts) Download the data and prepare a table showing the variables contained in the textbook's "Magic Equation" over the period 2005-13. The data below is India 2005-2013 Series Name 2005 2006 2007 2008 2009 2010 2011 2012 2013 Revenue, excluding grants (% of GDP) 12.34 13.32 14.44 12.76 11.42 13.18 11.50 12.60 12.61 Expense (% of GDP) G 15.17 15.19 15.26 17.23 16.85 16.51 14.49 16.17 16.64 Exports of goods and services (% of GDP) X 19.61 21.27 20.80 24.10 20.40 22.40 24.54 24.53 25.43 Imports of goods and services (% of GDP) M 22.40 24.46 24.89 29.27 25.87 26.85 31.08 31.26 28.41 Gross fixed capital formation (% of GDP) 32.76 33.58 35.81 34.72 33.95 33.23 34.31 33.44 31.30 Saving S 32.80 32.27 32.54 34.01 33.91 32.10 30.76 30.28 32.34 NX -2.79 -3.19 -4.09 -5.17 -5.47 -4.45 -6.54 -6.72 -2.98 GDP growth (annual %) 7.92 8.06 7.66 3.09 7.86 8.50 5.24 5.46 6.39 32.76 33.58 35.81 34.72 33.95 33.23 34.31 33.44 31.30 Sp 32.80 32.27 32.54 34.01 33.91 32.10 30.76 30.28 32.34 Sg -2.84 -1.87 -0.82 -4.47 -5.43 -3.32 -2.99 -3.57 -4.03 Sf 2.79 3.19 4.09 5.17 5.47 4.45 6.54 6.72 2.98 5) (30 pts) Using the course material and the table prepared above, discuss how the crisis and/or the policies adopted to fight the crisis affected the variables "before and after" the crisis. You may pick any two years to compare. Make sure to tell a plausible story with cause and effect. Hint: remember there might be different ways to interpret the equation, but you only need one plausible interpretation; it is usually easier to compare two years if at least two variables changed significantly.R C G H K M N O P U B D Series Name 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 39.2 38.4 37.4 37.5 38.0 37.8 38.9 39.1 17.4 39.7 42.3 45.0 47.1 44.7 45.8 47.5 46.1 46.0 Revenue, excluding grants (% of GDP) T 42.0 42.0 43.5 42.9 42.4 44.0 47.2 51.3 50.5 53.8 55.3 59.9 48.5 51.0 47.8 46.8 46.6 3 Expense (% of GDP) G 42.4 4 Exports of goods and services (% of GDP) X 22.8 20.1 18.5 20.7 21.3 21.2 22.5 23.4 19.0 22.1 25.5 28.7 30.4 32.4 31.6 30.1 33.0 36.1 Imports of goods and services (% of GDP) M 33.4 30.2 29.6 29.2 29.6 31.7 35.0 36.0 28.8 30.7 32.3 33.1 33.2 34.8 31.5 30.8 34.0 36.4 Gross fixed capital formation (% of GDP) 24.7 23.6 25.3 24.4 20.8 23.7 26.0 23.8 20.8 17.6 15.3 12.6 12.2 11.5 11.6 12.1 12.9 11.1 17.4 17.0 18.8 21.9 17.5 .7.8 18.6 19.3 24:9 19.8 20.1 18.5 22.2 11.6 Saving 13.0 16.8 12.5 11.4 8 9 NX -10.6 10.1 -11.1 -8.5 -8.3 -10.5 12.5 -12.6 -9.8 -8.6 6.8 4.4 -2.8 -2.4 0.1 0.7 -1.0 -0.3 10 GDP growth (annual %) 4.1 3.9 5 .8 5.1 0.6 5.7 3.3 -0.3 -4.3 -5.5 -9.1 - 7.3 -3.2 0.7 -0.4 -0.2 1.5 11 1 24.7 23.6 25.3 24.4 20.8 23.7 26.0 23.8 20.8 17.6 15.3 12.6 12.2 11.5 11.6 12.1 12.9 11.1 12 Sp 17.4 17.0 18.8 21.9 17.5 17.8 18.6 19.3 24.9 19.8 20.1 18.5 22.2 13.0 16.8 11.6 12.5 11.4 13 SB -3.3 -3.6 -4.6 6.0 4.9 -4.6 -5.1 -8.1 -13.9 -10.9 -11.6 -10.3 -12.8 -3.8 -5.2 -0.3 -0.7 -0.6 14 5f 10.6 10.1 11.1 8.5 8.3 10.5 12.5 12.6 9.8 8.6 6.8 4.4 2.8 2.4 -0.1 0.7 1.0 0.3 15 16 17 C notice how the inflow of foreign saving decline (NX becomes less negative) when other countries decide to cut lending to Greece notice how economic growth only returns after the government deficit is substantially reduced and almost eliminated (by "austerity")
