Problem
Now we want to see the cyclical component of GDP. This is simply the difference between GDP and its trend. Because we are interested in relative changes, as opposed to absolute changes, it is better to use log-differences instead of absolute differences. Compute the cyclical component as ln(GDP) ln(Trend). Plot the cyclical component. You will see the business cycles for which we have been looking. (Document your work, providing spreadsheet formulas, etc.)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.