ECON 211- PRINCIPLES OF MACROECONOMICS
Department of Accounting, Finance, and Economics
With the attached excel file, use the data components of GDP to evaluate the equation of GDP, that is:
Next, show a graphical representation of these variables and check that
Finally, identify and describe business cycle phases from GDP graph obtained previously.
Written Report on the GDP
Draft a two-page report on the GDP behavior over the period 1999-01 to 2022 and describe business cycle over the same period. First, describe the steps taken to construct the graphs. In your analysis, describe the business cycle present in the GDP data, that is, describe recession period (decrease in GDP of more than 6 month), expansion (increase in GDP), peak (the highest GDP during the expansion), and trough.
Use the GDP equation and data on GDP components to evaluate the equation. Create different visualizations using each of the variables over the last decade (1999-2022) to show the relationship between GDP and each of its components. Which components seems to determine the behavior of the GDP? How can you identify unemployment or inflation from the GDP graph?
Next, determine the GDP share of consumption, GDP share of investment, GDP share of government spending, and GDP share of net exports. What GDP component has the largest share? What have you learned about measuring GDP from this assignment? Be sure to cite, using APA, any findings to back your argument and provide a bibliography.