Chat with AI
Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz
Edition 12ISBN: 978-1259070969Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz
Edition 12ISBN: 978-1259070969 Exercise 4
In this exercise you will verify the relationship between money, velocity, and output in equation (1): MV = PY.
a. Go to http://research.stlouisfed.org/fred2 and click on "Categories," under "National Income Product Accounts" select "GDP/GNP." Find and download annual data for nominal GDP starting in 1959.
b. Go back to the "Categories" page and click on "Monetary Data." Find and download annual data for M 2 Money Stock and M 2 Velocity starting in 1959.
c. Calculate the difference between the two sides of equation (1), MV - PY.
d. Calculate the average percent error
over this period. Do your calculations support equation (1)
a. Go to http://research.stlouisfed.org/fred2 and click on "Categories," under "National Income Product Accounts" select "GDP/GNP." Find and download annual data for nominal GDP starting in 1959.
b. Go back to the "Categories" page and click on "Monetary Data." Find and download annual data for M 2 Money Stock and M 2 Velocity starting in 1959.
c. Calculate the difference between the two sides of equation (1), MV - PY.
d. Calculate the average percent error
over this period. Do your calculations support equation (1)Explanation
This question doesn’t have an expert verified answer yet, let Examlex AI Copilot help.
Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
