Assignment:
Data Question. This question requires that you use the OECD National Income and Produd Accounts and National Economic Statistics Data. Select one OECD country that interests you from the following list Brazil, Canada, France, Gennany, Italy, Japan, South Korea, Norway, Spain, and Sweden. Download the following scrim Nominal GDP, Constant Chain-Weighted Real GDP, the Consumer Price Level (or the inflation rate using the CPO, and the unemployment rate. Your sample frequency should be quarterly and begin in 1990, If data exists before thew and you want to select the longest possible historical period.
Produce two graphs.
a. The first graph should contain the nominal GDP and real GDP, The horizontal axis is for time and the vertical axis is for the levels of GDP. If you have access to Recession Dating periods, Hy to include them in your graph in the background.
b. Plot the unemployment rate (ue) on the vertical axis and time on the horizontal axis. Include the Recession Dating Periods if available,
ii. Calculate the annual growth rates of Real GDP. Use the formula
annual Real GDP growth rate = g,% = (y1-y1-4/y1-4)* 100
whetter is the turivat varier t - 4 is the same quarter from the previous year Plot the annual growth rate of teal GDP and the unemployment rate on the vertical axis and time on the horizontal axis. Include the Recession Dating Periods if available.
iv. Describe the behavior of the two real 01W win in Figure 1. A.
v. Describe the behavior of the unemployment rate in Figure I.B.
vi. Describe the behavior of the unemployment rate and the annual growth rate of real GDP in Figure I C.
Recommendation for Describing the properties of data in a time series graph.
For example. when plotting or graph'Ing a single series answer the following types of questions: What are the initial and final value of the series over time? What is die average level. the range (maximum and minimum values)? When do they occur? Do you observe a rend or trends? Do you observe changes in the avenge level ( shifts or breaks)? When do they occur?
When plotting two or more series it the same graph, repeat the same exercise as for the single series graph. In addition, compare your observations about the individual series. Do they tend to move together or differently over time? E.g. do the series appear to be pm-cyclical or counter-cyclical? If you know or look up the history put the properties of the data in context? E.g. recessions-expansions and or natural disaster, strikes, changes in government.
vii. Descrthe what you observe in the figures in i. and iv.? Discuss the 'anginal series data properties in levek and relationship between the two series in levels, their respective annual growth rates., their difference, and ratio. (I recommend that you download the data series into a spreadsheet. This will help to tokukte summary statistics for full sample and sub-sampies.)