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 (Y+)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?

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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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You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. New businesses Business failures State income tax receipts ($ millions) College student enrollment State sales tax ($ millions) Click here for the Excel Data File Leading economic indicator The weights you assign are: new businesses 17%, business failures 10%, income tax 34%, enrollment 14% and sales tax 25%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) 2000 1,125 592 196.2 242,159 46.1 Economic activity has 2018 1,059 286 178.8 291,079 66.7 c. Interpret the indexes. (Round your answer…
question 8 macronecon
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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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