Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 2, Problem 6WWMD
b)
To determine
The graphical representation of quarterly growth rates of real
b)
Expert Solution
Explanation of Solution
The data of quarterly growth rates of real GDP from 1960 to last year using the percent change from a year ago is as follows:
| Date | GDP, percentage change from quarter one year ago. |
| 1960-01-01 | 4.9 |
| 1960-04-01 | 2.1 |
| 1960-07-01 | 2.5 |
| 1960-10-01 | 0.9 |
| 1961-01-01 | -0.7 |
| 1961-04-01 | 1.6 |
| 1961-07-01 | 3.0 |
| 1961-10-01 | 6.4 |
| 1962-01-01 | 7.6 |
| 1962-04-01 | 6.7 |
| 1962-07-01 | 6.0 |
| 1962-10-01 | 4.3 |
| 1963-01-01 | 3.6 |
| 1963-04-01 | 3.8 |
| 1963-07-01 | 4.8 |
| 1963-10-01 | 5.2 |
| 1964-01-01 | 6.2 |
| 1964-04-01 | 6.2 |
| 1964-07-01 | 5.5 |
| 1964-10-01 | 5.2 |
| 1965-01-01 | 5.5 |
| 1965-04-01 | 5.7 |
| 1965-07-01 | 6.3 |
| 1965-10-01 | 8.5 |
| 1966-01-01 | 8.5 |
| 1966-04-01 | 7.5 |
| 1966-07-01 | 6.0 |
| 1966-10-01 | 4.5 |
| 1967-01-01 | 2.9 |
| 1967-04-01 | 2.6 |
| 1967-07-01 | 2.7 |
| 1967-10-01 | 2.7 |
| 1968-01-01 | 3.8 |
| 1968-04-01 | 5.5 |
| 1968-07-01 | 5.3 |
| 1968-10-01 | 5.0 |
| 1969-01-01 | 4.5 |
| 1969-04-01 | 3.1 |
| 1969-07-01 | 3.0 |
| 1969-10-01 | 2.0 |
| 1970-01-01 | 0.3 |
| 1970-04-01 | 0.2 |
| 1970-07-01 | 0.4 |
| 1970-10-01 | -0.2 |
| 1971-01-01 | 2.7 |
| 1971-04-01 | 3.1 |
| 1971-07-01 | 3.0 |
| 1971-10-01 | 4.4 |
| 1972-01-01 | 3.5 |
| 1972-04-01 | 5.3 |
| 1972-07-01 | 5.4 |
| 1972-10-01 | 6.9 |
| 1973-01-01 | 7.6 |
| 1973-04-01 | 6.3 |
| 1973-07-01 | 4.8 |
| 1973-10-01 | 4.0 |
| 1974-01-01 | 0.6 |
| 1974-04-01 | -0.2 |
| 1974-07-01 | -0.6 |
| 1974-10-01 | -1.9 |
| 1975-01-01 | -2.3 |
| 1975-04-01 | -1.8 |
| 1975-07-01 | 0.8 |
| 1975-10-01 | 2.6 |
| 1976-01-01 | 6.2 |
| 1976-04-01 | 6.2 |
| 1976-07-01 | 5.0 |
| 1976-10-01 | 4.3 |
| 1977-01-01 | 3.2 |
| 1977-04-01 | 4.5 |
| 1977-07-01 | 5.8 |
| 1977-10-01 | 5.0 |
| 1978-01-01 | 4.1 |
| 1978-04-01 | 6.1 |
| 1978-07-01 | 5.2 |
| 1978-10-01 | 6.7 |
| 1979-01-01 | 6.5 |
| 1979-04-01 | 2.7 |
| 1979-07-01 | 2.4 |
| 1979-10-01 | 1.3 |
| 1980-01-01 | 1.4 |
| 1980-04-01 | -0.8 |
| 1980-07-01 | -1.6 |
| 1980-10-01 | 0.0 |
| 1981-01-01 | 1.6 |
| 1981-04-01 | 3.0 |
| 1981-07-01 | 4.3 |
| 1981-10-01 | 1.3 |
| 1982-01-01 | -2.2 |
| 1982-04-01 | -1.0 |
| 1982-07-01 | -2.6 |
| 1982-10-01 | -1.4 |
| 1983-01-01 | 1.4 |
| 1983-04-01 | 3.3 |
| 1983-07-01 | 5.7 |
| 1983-10-01 | 7.9 |
| 1984-01-01 | 8.6 |
| 1984-04-01 | 8.0 |
| 1984-07-01 | 6.9 |
| 1984-10-01 | 5.6 |
| 1985-01-01 | 4.6 |
| 1985-04-01 | 3.7 |
| 1985-07-01 | 4.3 |
| 1985-10-01 | 4.2 |
| 1986-01-01 | 4.1 |
| 1986-04-01 | 3.7 |
| 1986-07-01 | 3.1 |
| 1986-10-01 | 2.9 |
| 1987-01-01 | 2.7 |
| 1987-04-01 | 3.4 |
| 1987-07-01 | 3.3 |
| 1987-10-01 | 4.5 |
| 1988-01-01 | 4.2 |
| 1988-04-01 | 4.5 |
| 1988-07-01 | 4.2 |
| 1988-10-01 | 3.8 |
| 1989-01-01 | 4.3 |
| 1989-04-01 | 3.7 |
| 1989-07-01 | 3.9 |
| 1989-10-01 | 2.7 |
| 1990-01-01 | 2.8 |
| 1990-04-01 | 2.4 |
| 1990-07-01 | 1.7 |
| 1990-10-01 | 0.6 |
| 1991-01-01 | -1.0 |
| 1991-04-01 | -0.5 |
| 1991-07-01 | -0.1 |
| 1991-10-01 | 1.2 |
| 1992-01-01 | 2.9 |
| 1992-04-01 | 3.2 |
| 1992-07-01 | 3.7 |
| 1992-10-01 | 4.4 |
| 1993-01-01 | 3.3 |
| 1993-04-01 | 2.8 |
| 1993-07-01 | 2.3 |
| 1993-10-01 | 2.6 |
| 1994-01-01 | 3.4 |
| 1994-04-01 | 4.2 |
| 1994-07-01 | 4.3 |
| 1994-10-01 | 4.1 |
| 1995-01-01 | 3.5 |
| 1995-04-01 | 2.4 |
| 1995-07-01 | 2.7 |
| 1995-10-01 | 2.2 |
| 1996-01-01 | 2.6 |
| 1996-04-01 | 4.0 |
| 1996-07-01 | 4.1 |
| 1996-10-01 | 4.4 |
| 1997-01-01 | 4.3 |
| 1997-04-01 | 4.3 |
| 1997-07-01 | 4.7 |
| 1997-10-01 | 4.5 |
| 1998-01-01 | 4.9 |
| 1998-04-01 | 4.1 |
| 1998-07-01 | 4.1 |
| 1998-10-01 | 4.9 |
| 1999-01-01 | 4.8 |
| 1999-04-01 | 4.7 |
| 1999-07-01 | 4.7 |
| 1999-10-01 | 4.8 |
| 2000-01-01 | 4.2 |
| 2000-04-01 | 5.3 |
| 2000-07-01 | 4.1 |
| 2000-10-01 | 3.0 |
| 2001-01-01 | 2.3 |
| 2001-04-01 | 1.1 |
| 2001-07-01 | 0.5 |
| 2001-10-01 | 0.2 |
| 2002-01-01 | 1.3 |
| 2002-04-01 | 1.3 |
| 2002-07-01 | 2.2 |
| 2002-10-01 | 2.1 |
| 2003-01-01 | 1.8 |
| 2003-04-01 | 2.0 |
| 2003-07-01 | 3.3 |
| 2003-10-01 | 4.3 |
| 2004-01-01 | 4.3 |
| 2004-04-01 | 4.2 |
| 2004-07-01 | 3.4 |
| 2004-10-01 | 3.3 |
| 2005-01-01 | 3.9 |
| 2005-04-01 | 3.6 |
| 2005-07-01 | 3.5 |
| 2005-10-01 | 3.1 |
| 2006-01-01 | 3.4 |
| 2006-04-01 | 3.1 |
| 2006-07-01 | 2.4 |
| 2006-10-01 | 2.6 |
| 2007-01-01 | 1.5 |
| 2007-04-01 | 1.8 |
| 2007-07-01 | 2.2 |
| 2007-10-01 | 2.0 |
| 2008-01-01 | 1.1 |
| 2008-04-01 | 1.1 |
| 2008-07-01 | 0.0 |
| 2008-10-01 | -2.8 |
| 2009-01-01 | -3.3 |
| 2009-04-01 | -3.9 |
| 2009-07-01 | -3.0 |
| 2009-10-01 | 0.2 |
| 2010-01-01 | 1.7 |
| 2010-04-01 | 2.8 |
| 2010-07-01 | 3.2 |
| 2010-10-01 | 2.6 |
| 2011-01-01 | 1.9 |
| 2011-04-01 | 1.7 |
| 2011-07-01 | 0.9 |
| 2011-10-01 | 1.6 |
| 2012-01-01 | 2.7 |
| 2012-04-01 | 2.4 |
| 2012-07-01 | 2.5 |
| 2012-10-01 | 1.5 |
| 2013-01-01 | 1.6 |
| 2013-04-01 | 1.3 |
| 2013-07-01 | 1.9 |
| 2013-10-01 | 2.6 |
| 2014-01-01 | 1.4 |
| 2014-04-01 | 2.7 |
| 2014-07-01 | 3.1 |
| 2014-10-01 | 2.9 |
| 2015-01-01 | 4.0 |
| 2015-04-01 | 3.3 |
| 2015-07-01 | 2.4 |
| 2015-10-01 | 1.9 |
| 2016-01-01 | 1.6 |
| 2016-04-01 | 1.3 |
| 2016-07-01 | 1.6 |
| 2016-10-01 | 2.0 |
| 2017-01-01 | 2.1 |
| 2017-04-01 | 2.2 |
| 2017-07-01 | 2.4 |
| 2017-10-01 | 2.8 |
| 2018-01-01 | 2.9 |
c)
To determine
The graphical representation of quarterly growth rates of real GDP from 1960 to last year using the percent change from preceding period quarterly. To ascertain the least volatile and most volatile measure, and the differences between these three series.
c)
Expert Solution
Explanation of Solution
The data of quarterly growth rates of real GDP from 1960 to last year using the percent change from preceding period quarterly is as follows:
| Date | GDP percent change from preceding period, quarterly |
| 1960-04-01 | -2.1 |
| 1960-07-01 | 2.0 |
| 1960-10-01 | -5.0 |
| 1961-01-01 | 2.7 |
| 1961-04-01 | 7.0 |
| 1961-07-01 | 7.9 |
| 1961-10-01 | 8.1 |
| 1962-01-01 | 7.3 |
| 1962-04-01 | 3.7 |
| 1962-07-01 | 5.0 |
| 1962-10-01 | 1.3 |
| 1963-01-01 | 4.4 |
| 1963-04-01 | 4.6 |
| 1963-07-01 | 9.1 |
| 1963-10-01 | 2.6 |
| 1964-01-01 | 8.7 |
| 1964-04-01 | 4.4 |
| 1964-07-01 | 6.4 |
| 1964-10-01 | 1.2 |
| 1965-01-01 | 10.0 |
| 1965-04-01 | 5.1 |
| 1965-07-01 | 9.2 |
| 1965-10-01 | 9.5 |
| 1966-01-01 | 10.1 |
| 1966-04-01 | 1.4 |
| 1966-07-01 | 3.4 |
| 1966-10-01 | 3.3 |
| 1967-01-01 | 3.6 |
| 1967-04-01 | 0.2 |
| 1967-07-01 | 3.8 |
| 1967-10-01 | 3.0 |
| 1968-01-01 | 8.4 |
| 1968-04-01 | 6.9 |
| 1968-07-01 | 3.1 |
| 1968-10-01 | 1.6 |
| 1969-01-01 | 6.4 |
| 1969-04-01 | 1.2 |
| 1969-07-01 | 2.7 |
| 1969-10-01 | -1.9 |
| 1970-01-01 | -0.6 |
| 1970-04-01 | 0.6 |
| 1970-07-01 | 3.7 |
| 1970-10-01 | -4.2 |
| 1971-01-01 | 11.3 |
| 1971-04-01 | 2.2 |
| 1971-07-01 | 3.3 |
| 1971-10-01 | 0.9 |
| 1972-01-01 | 7.6 |
| 1972-04-01 | 9.4 |
| 1972-07-01 | 3.8 |
| 1972-10-01 | 6.9 |
| 1973-01-01 | 10.3 |
| 1973-04-01 | 4.4 |
| 1973-07-01 | -2.1 |
| 1973-10-01 | 3.8 |
| 1974-01-01 | -3.4 |
| 1974-04-01 | 1.0 |
| 1974-07-01 | -3.7 |
| 1974-10-01 | -1.5 |
| 1975-01-01 | -4.8 |
| 1975-04-01 | 2.9 |
| 1975-07-01 | 7.0 |
| 1975-10-01 | 5.5 |
| 1976-01-01 | 9.3 |
| 1976-04-01 | 3.0 |
| 1976-07-01 | 2.2 |
| 1976-10-01 | 2.9 |
| 1977-01-01 | 4.8 |
| 1977-04-01 | 8.0 |
| 1977-07-01 | 7.4 |
| 1977-10-01 | 0.0 |
| 1978-01-01 | 1.3 |
| 1978-04-01 | 16.4 |
| 1978-07-01 | 4.1 |
| 1978-10-01 | 5.5 |
| 1979-01-01 | 0.7 |
| 1979-04-01 | 0.4 |
| 1979-07-01 | 3.0 |
| 1979-10-01 | 1.0 |
| 1980-01-01 | 1.3 |
| 1980-04-01 | -8.0 |
| 1980-07-01 | -0.5 |
| 1980-10-01 | 7.7 |
| 1981-01-01 | 8.1 |
| 1981-04-01 | -2.9 |
| 1981-07-01 | 4.9 |
| 1981-10-01 | -4.3 |
| 1982-01-01 | -6.1 |
| 1982-04-01 | 1.8 |
| 1982-07-01 | -1.5 |
| 1982-10-01 | 0.2 |
| 1983-01-01 | 5.4 |
| 1983-04-01 | 9.4 |
| 1983-07-01 | 8.2 |
| 1983-10-01 | 8.6 |
| 1984-01-01 | 8.1 |
| 1984-04-01 | 7.1 |
| 1984-07-01 | 3.9 |
| 1984-10-01 | 3.3 |
| 1985-01-01 | 3.9 |
| 1985-04-01 | 3.6 |
| 1985-07-01 | 6.2 |
| 1985-10-01 | 3.0 |
| 1986-01-01 | 3.8 |
| 1986-04-01 | 1.8 |
| 1986-07-01 | 3.9 |
| 1986-10-01 | 2.2 |
| 1987-01-01 | 3.0 |
| 1987-04-01 | 4.4 |
| 1987-07-01 | 3.5 |
| 1987-10-01 | 7.0 |
| 1988-01-01 | 2.1 |
| 1988-04-01 | 5.4 |
| 1988-07-01 | 2.4 |
| 1988-10-01 | 5.4 |
| 1989-01-01 | 4.1 |
| 1989-04-01 | 3.1 |
| 1989-07-01 | 3.0 |
| 1989-10-01 | 0.8 |
| 1990-01-01 | 4.4 |
| 1990-04-01 | 1.5 |
| 1990-07-01 | 0.3 |
| 1990-10-01 | -3.6 |
| 1991-01-01 | -1.9 |
| 1991-04-01 | 3.2 |
| 1991-07-01 | 2.0 |
| 1991-10-01 | 1.4 |
| 1992-01-01 | 4.9 |
| 1992-04-01 | 4.4 |
| 1992-07-01 | 4.0 |
| 1992-10-01 | 4.2 |
| 1993-01-01 | 0.7 |
| 1993-04-01 | 2.3 |
| 1993-07-01 | 1.9 |
| 1993-10-01 | 5.6 |
| 1994-01-01 | 3.9 |
| 1994-04-01 | 5.5 |
| 1994-07-01 | 2.4 |
| 1994-10-01 | 4.7 |
| 1995-01-01 | 1.4 |
| 1995-04-01 | 1.2 |
| 1995-07-01 | 3.5 |
| 1995-10-01 | 2.7 |
| 1996-01-01 | 3.0 |
| 1996-04-01 | 6.8 |
| 1996-07-01 | 3.6 |
| 1996-10-01 | 4.2 |
| 1997-01-01 | 2.6 |
| 1997-04-01 | 6.8 |
| 1997-07-01 | 5.1 |
| 1997-10-01 | 3.5 |
| 1998-01-01 | 4.1 |
| 1998-04-01 | 3.8 |
| 1998-07-01 | 5.1 |
| 1998-10-01 | 6.6 |
| 1999-01-01 | 3.8 |
| 1999-04-01 | 3.1 |
| 1999-07-01 | 5.3 |
| 1999-10-01 | 7.0 |
| 2000-01-01 | 1.5 |
| 2000-04-01 | 7.5 |
| 2000-07-01 | 0.5 |
| 2000-10-01 | 2.5 |
| 2001-01-01 | -1.1 |
| 2001-04-01 | 2.4 |
| 2001-07-01 | -1.7 |
| 2001-10-01 | 1.1 |
| 2002-01-01 | 3.5 |
| 2002-04-01 | 2.4 |
| 2002-07-01 | 1.8 |
| 2002-10-01 | 0.6 |
| 2003-01-01 | 2.2 |
| 2003-04-01 | 3.5 |
| 2003-07-01 | 7.0 |
| 2003-10-01 | 4.7 |
| 2004-01-01 | 2.2 |
| 2004-04-01 | 3.1 |
| 2004-07-01 | 3.8 |
| 2004-10-01 | 4.1 |
| 2005-01-01 | 4.5 |
| 2005-04-01 | 1.9 |
| 2005-07-01 | 3.6 |
| 2005-10-01 | 2.6 |
| 2006-01-01 | 5.4 |
| 2006-04-01 | 0.9 |
| 2006-07-01 | 0.6 |
| 2006-10-01 | 3.5 |
| 2007-01-01 | 0.9 |
| 2007-04-01 | 2.3 |
| 2007-07-01 | 2.2 |
| 2007-10-01 | 2.5 |
| 2008-01-01 | -2.3 |
| 2008-04-01 | 2.1 |
| 2008-07-01 | -2.1 |
| 2008-10-01 | -8.4 |
| 2009-01-01 | -4.4 |
| 2009-04-01 | -0.6 |
| 2009-07-01 | 1.5 |
| 2009-10-01 | 4.5 |
| 2010-01-01 | 1.5 |
| 2010-04-01 | 3.7 |
| 2010-07-01 | 3.0 |
| 2010-10-01 | 2.0 |
| 2011-01-01 | -1.0 |
| 2011-04-01 | 2.9 |
| 2011-07-01 | -0.1 |
| 2011-10-01 | 4.7 |
| 2012-01-01 | 3.2 |
| 2012-04-01 | 1.7 |
| 2012-07-01 | 0.5 |
| 2012-10-01 | 0.5 |
| 2013-01-01 | 3.6 |
| 2013-04-01 | 0.5 |
| 2013-07-01 | 3.2 |
| 2013-10-01 | 3.2 |
| 2014-01-01 | -1.1 |
| 2014-04-01 | 5.5 |
| 2014-07-01 | 5.0 |
| 2014-10-01 | 2.3 |
| 2015-01-01 | 3.2 |
| 2015-04-01 | 3.0 |
| 2015-07-01 | 1.3 |
| 2015-10-01 | 0.1 |
| 2016-01-01 | 2.0 |
| 2016-04-01 | 1.9 |
| 2016-07-01 | 2.2 |
| 2016-10-01 | 2.0 |
| 2017-01-01 | 2.3 |
| 2017-04-01 | 2.2 |
| 2017-07-01 | 3.2 |
| 2017-10-01 | 3.5 |
| 2018-01-01 | 2.5 |
| 2018-04-01 | 3.5 |
The graphical representation of the quarterly growth rates of real GDP from 1960 to 2018 using the percent change from the previous quarter is as follows:
The quarterly percent change at the annual rate indicates the percent change, if the quarterly rate goes on for four quarters. It is calculated by compounding of quarterly rate for four quarters.
For some unpredictable quarterly series, percentage changes at quarterly rates rather than at annual rates are preferred because the question of comparability is less relevant and because the annual rate of change is smaller.
When these three data and their respective graph compare to each other for some specific successive period of time, following result is determined:
- 2nd one that is, GDP growth rate using percentage change from quarter one year ago is most volatile and 3rd way that is, GDP growth rate by using percent change from preceding period quarterly is least volatile.
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- Not use ai please letarrow_forwardQuestions from textbook: Santerre, Rexford, E., and Neun, Stephan P. Health Economics: Theories, Insights, and Industry Studies, 6th Edition, ISBN 13: 978-1-111-822729. Mason, OH: South-Western, Cengage Learning, 2013. 1. Suppose a health expenditure function is specified in the following manner: E = 500 + 0.2Y where E represents annual health care expenditures per capita and Y stands for income per capita. a. Using the slope of the health expenditure function, predict the change in per capita health care expenditures that would result from a $1,000 increase in per capita income. b. Compute the level of per capita health care spending when per capita income takes on the following dollar values: 0; 1,000; 2,000; 4,000; and 6,000. c. Using the resulting values for per capita health care spending in part B, graph the associated health care expenditure function. d. Assume that the fixed amount of health care spending decreases to $250. Graph the new and original health care functions on…arrow_forwardGraph shows the daily market price of jeans when the tax on sellers is set to zero per pair supposed the government institutes attacks of $20.30 per pair to be paid by the seller what is the quantity after taxarrow_forward
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