Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TABLE B.16 U.S. Gross Domestic Product Year GDP, Current Dollars (billions) GDP, Real (1996) Dollars (billions) 1976 1,823.9 4,311.7 1977 2,031.4 4,511.8 1978 2,295.9

TABLE B.16 U.S. Gross Domestic Product Year GDP, Current Dollars (billions) GDP, Real (1996) Dollars (billions) 1976 1,823.9 4,311.7 1977 2,031.4 4,511.8 1978 2,295.9 4,760.6 1979 2,566.4 4,912.1 1980 2,795.6 4,900.9 1981 3,131.3 5,021.0 1982 3,259.2 3,534.9 4,919.3 1983 5,132.3 1984 3,932.7 5,505.2 1985 4,213.0 5,717.1 1986 4,452.9 5,912.4 1987 4,742.5 6,113.3 1988 5,108.3 6,368.4 1989 5,489.1 6,591.8 1990 5,803.2 6,707.9 1991 5,986.2 6,676.4 1992 6,318.9 6,880.0 7,062.6 1993 6,642.3 1994 7,054.3 7,347.7 1995 7,400.5 7,813.2 7,543.8 1996 7,813.2 1997 8,318.4 8,159.5 1998 8,781.5 8,508.9 1999 9,274.3 8,859.0 2000 9,824.6 10,082.2 9,191.4 2001 9,214.5 2002 10,446.2 9,439.9 Table B.16 presents data on the U.S. Gross Domestic Product (GDP). Plot the GDP data and calculate the sample autocorrelation function. Is there an indication of nonstationary behavior in the time series? Now plot the first difference of the GDP time series and compute the sample autocorrelation function of the first differences. What impact has differencing had on the time series?

Step by Step Solution

3.48 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

The mean and the variance of a stationary series do not change over time nor do they follow a trend ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Dean Karlan, Jonathan Morduch

1st edition

978-0077332587, 007733258X, 978-0077332648, 77332644, 978-1259163531

More Books

Students also viewed these Mathematics questions

Question

In your opinion, is mental illness currently overdiagnosed?

Answered: 1 week ago