Answer Happy

As a first step, use the GDP deflator to transform your nominal series into real variables, where relevant. Then, analyse the following: The time path of GDP and its natural logarithm. The composition of GDP and its evolution over the past two decades, according to both the expenditure and the income approach. Use your data to calculate the percentage con- tribution of each component to GDP. The evolution of the employment and unemployment rates. The trend and cycle components of real log GDP, real log consumption, real log investment, prices and the employment rate. Use the detrending method of your choice.
Additional comments from you □ Plot GDP of your home country at market prices, GDP at factor cost at current prices, GDP at factor cost at constant prices for at least 21 years period. □ Calculate annual growth rate □ Plot GNP at factor cost at current & constant period for at least 21 years. □ Sub-divide the period into 3 periods & carry out the same exercise as above. □ Comment on the overall growth story of the country during each of the sub-phase in detail □ Comment on the volatility of the growth rates.
To evaluate macroeconomic models, we often compare their predictions to the observed patterns for different variables. In this exercise, you are asked to have a look at the evolution of GDP, its components and employment in a country of your choice. Download the following series, ranging from around from OECD.Stat: GDP; GDP deflator; Private consumption (private final consumption expenditure);" Government consumption (general government final consumption expenditure); Investment (gross fixed capital formation);" Wages (compensation of employees); Profits (gross operating surplus and mixed income); Taxes (taxes less subsidies on production and imports);" Employment (civilian employment); Employment rate (civilian employment as % population 15-64);" Unemployment rate (unemployment rate as % civilian labour force)." - -