a. The following plot shows the 12-month percentage growth rates in real personal consumption expenditures (blue line) and in real government expenditures (red line). Do you see any evidence that the latter crowds out the former? Why or why not? 20 15 10 5 -10 -15 15 10 5 0 -5 -10 The following plot shows the 12-month percentage growth rates in real GDP (blue line) and in real government expenditures (red line). What, if any, relationship does there appear to be between these two time series? Briefly explain. Rate of Growth of C (blue) and G (red) 2003 3005 2007 2003 2013 2015 2017 2019 Rate of Growth of Y (blue) and G (red) 2011 2009 2007 2005 2013 2015 2021 2017 2023 2019 2021 2023
a. The following plot shows the 12-month percentage growth rates in real personal consumption expenditures (blue line) and in real government expenditures (red line). Do you see any evidence that the latter crowds out the former? Why or why not? 20 15 10 5 -10 -15 15 10 5 0 -5 -10 The following plot shows the 12-month percentage growth rates in real GDP (blue line) and in real government expenditures (red line). What, if any, relationship does there appear to be between these two time series? Briefly explain. Rate of Growth of C (blue) and G (red) 2003 3005 2007 2003 2013 2015 2017 2019 Rate of Growth of Y (blue) and G (red) 2011 2009 2007 2005 2013 2015 2021 2017 2023 2019 2021 2023
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:a.
The following plot shows the 12-month percentage growth rates in real personal
consumption expenditures (blue line) and in real government expenditures (red line). Do
you see any evidence that the latter crowds out the former? Why or why not?
20
15
10
5
-10
-15
15
10
5
0
-5
-10
The following plot shows the 12-month percentage growth rates in real GDP (blue line)
and in real government expenditures (red line). What, if any, relationship does there appear
to be between these two time series? Briefly explain.
Rate of Growth of C (blue) and G (red)
2003 3005 2007
2003
2013
2015 2017 2019
Rate of Growth of Y (blue) and G (red)
2011
2009
2007
2005
2013 2015
2021
2017
2023
2019 2021
2023
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