Refer to the quarterly value of Gross Domestic Product (GDP in billions of currentdollars) in China from 2021q1 to 2023q4. You are going to analyze GDP by an additivemodel with a trend component (Tt) and a seasonal component (St), and forecast GDPusing the seasonal decomposition method.YearQuartertGDP (Y₁)CM(4)Detrended202111249202228284.93329128.8??4432589.9??20221527034.4??2629244.7??3730794.2??4833399.1??20231928442.3??21030829.3??31131997.641234789a. Use an CM(t|4) [centered moving average of order 4] series to estimate the GDPseries from t = 3 to 10.b. Calculate the seasonal factors for each quarter with a zero mean, by first obtainingthe detrended revenue series from t = 3 to 10.c. In this seasonal decomposition method, why is it necessary to use moving averagesto process time series data first? How about using moving average of order 5?

The objective of the question is to analyze the GDP of China using an additive model with a trend…

Answered: Refer to the quarterly value of Gross…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3
Statistics Denmark monitors the development of economic variables and measures e.g. productivity development.In general, it is one of the laws of economics that employee productivity determines the ability of employers to pay employees wages. The higher the productivity (per capita output), the higher the wages that can be paid. In a recession, such as Covid, companies are generally reducing their use of labor. The latest statistics show the following: In the third quarter of 2020, labor productivity growth in Denmark was 2%. This increase alone does not say much, but is considered to be able to reflect an increase in productivity following a contraction in labor input. a. Show the relationship between production and labor use in the short term and at the same time explain with a picture what can cause the growth of productivity. b. What is happening to marginal production at the same time? c. Show how wages develop if companies keep marginal costs fixed in the above circumstances…
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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? Please answer c, d, and e. Thank you!
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