Q. Table provided gives data on gross domestic product (GDP) for the United States for the years 1959–2005. a. Plot the GDP data in current and constant (i.e., 2000) dollars against time. b. Letting Y denote GDP and X time (measured chronologically starting with 1 for 1959, 2 for 1960, through 47 for 2005), see if the following model fits the GDP data: Yt = β1 + β2 Xt + ut Estimate this model for both current and constant-dollar GDP. c. How would you interpret β2? d. If there is a difference between β2 estimated for current-dollar GDP and that estimated for constant-dollar GDP, what explains the difference? e. From your results what can you say about the nature of inflation in the United States over the sample period?
Q. Table provided gives data on gross domestic product (GDP) for the United States for the years 1959–2005. a. Plot the GDP data in current and constant (i.e., 2000) dollars against time. b. Letting Y denote GDP and X time (measured chronologically starting with 1 for 1959, 2 for 1960, through 47 for 2005), see if the following model fits the GDP data: Yt = β1 + β2 Xt + ut Estimate this model for both current and constant-dollar GDP. c. How would you interpret β2? d. If there is a difference between β2 estimated for current-dollar GDP and that estimated for constant-dollar GDP, what explains the difference? e. From your results what can you say about the nature of inflation in the United States over the sample period?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Problem 1P
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Q. Table provided gives data on gross domestic product (GDP) for the United States for the years 1959–2005.
a. Plot the GDP data in current and constant (i.e., 2000) dollars against time.
b. Letting Y denote GDP and X time (measured chronologically starting with 1 for 1959, 2 for 1960, through 47 for 2005), see if the following model fits the GDP data:
Yt = β1 + β2 Xt + ut
Estimate this model for both current and constant-dollar GDP.
c. How would you interpret β2?
d. If there is a difference between β2 estimated for current-dollar GDP and that estimated for constant-dollar GDP, what explains the difference?
e. From your results what can you say about the nature of inflation in the United States over the sample period?
![TABLE 3.8
Year
NGDP
RGDP
Year
NGDP
RGDP
Nominal and Real
1959
506.6
Gross Domestic
2,441.3
1983
3,536.7
5,423.8
1960
526.4
Product, 1959-2005
2,501.8
1984
3,933.2
5,813.6
1961
544.7
(billions of dollars,
2,560.0
1985
4,220.3
6,053.7
1962
585.6
except as noted;
2,715.2
1986
4,462.8
6,263.6
1963
617.7
quarterly data at
2,834.0
1987
4,739.5
6,475.1
1964
663.6
seasonally adjusted
2,998.6
1988
5,103.8
6,742.7
1965
719.1
annual rates; RGDP
3,191.1
1989
5,484.4
6,981.4
1966
787.8
in billions of chained
3,399.1
1990
5,803.1
7,112.5
1967
832.6
3,484.6
1991
[2000] dollars)
5,995.9
7,100.5
1968
910.0
3,652.7
1992
6,337.7
7,336.6
1969
984.6
3,765.4
1993
6,657.4
7,532.7
1970
1,038.5
3,771.9
1994
7,072.2
7,835.5
1971
1,127.1
3,898.6
1995
7,397.7
8,031.7
1972
1,238.3
4,105.0
1996
7,816.9
8,328.9
1973
1,382.7
4,341.5
1997
8,304.3
8,703.5
1974
1,500.0
4,319.6
1998
8,747.0
9,066.9
1975
1,638.3
4,311.2
1999
9,268.4
9,470.3
1976
1,825.3
4,540.9
2000
9,817.0
9,817.0
1977
2,030.9
4,750.5
2001
10,128.0
9,890.7
1978
2,294.7
5,015.0
2002
10,469.6
10,048.8
1979
2,563.3
5,173.4
2003
10,960.8
10,301.0
1980
2,789.5
5,161.7
2004
11,712.5
10,703.5
1981
3,128.4
5,291.7
2005
12,455.8
11,048.6
1982
3,255.0
5,189.3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50fbc884-4de6-47bb-a045-4d2caa13a541%2F51192bb5-47c2-41f5-b286-a0a67831fc5b%2Fqaqpcua_processed.png&w=3840&q=75)
Transcribed Image Text:TABLE 3.8
Year
NGDP
RGDP
Year
NGDP
RGDP
Nominal and Real
1959
506.6
Gross Domestic
2,441.3
1983
3,536.7
5,423.8
1960
526.4
Product, 1959-2005
2,501.8
1984
3,933.2
5,813.6
1961
544.7
(billions of dollars,
2,560.0
1985
4,220.3
6,053.7
1962
585.6
except as noted;
2,715.2
1986
4,462.8
6,263.6
1963
617.7
quarterly data at
2,834.0
1987
4,739.5
6,475.1
1964
663.6
seasonally adjusted
2,998.6
1988
5,103.8
6,742.7
1965
719.1
annual rates; RGDP
3,191.1
1989
5,484.4
6,981.4
1966
787.8
in billions of chained
3,399.1
1990
5,803.1
7,112.5
1967
832.6
3,484.6
1991
[2000] dollars)
5,995.9
7,100.5
1968
910.0
3,652.7
1992
6,337.7
7,336.6
1969
984.6
3,765.4
1993
6,657.4
7,532.7
1970
1,038.5
3,771.9
1994
7,072.2
7,835.5
1971
1,127.1
3,898.6
1995
7,397.7
8,031.7
1972
1,238.3
4,105.0
1996
7,816.9
8,328.9
1973
1,382.7
4,341.5
1997
8,304.3
8,703.5
1974
1,500.0
4,319.6
1998
8,747.0
9,066.9
1975
1,638.3
4,311.2
1999
9,268.4
9,470.3
1976
1,825.3
4,540.9
2000
9,817.0
9,817.0
1977
2,030.9
4,750.5
2001
10,128.0
9,890.7
1978
2,294.7
5,015.0
2002
10,469.6
10,048.8
1979
2,563.3
5,173.4
2003
10,960.8
10,301.0
1980
2,789.5
5,161.7
2004
11,712.5
10,703.5
1981
3,128.4
5,291.7
2005
12,455.8
11,048.6
1982
3,255.0
5,189.3
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