Economic Analysis of the U.S. Economy: GDP Trends, Recession Impacts, and Unemployment Dynamics (1980�2015)

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Economic Analysis of the U.S. Economy: GDP Trends, Recession Impacts, and Unemployment Dynamics (1980 – 2015) 1. From the National Income and Product Accounts, published by the BEA, download quarterly data on nominal gross domestic product [Table 1.1.5] and the implicit price deflator [Table 1.1.9] from 1980Q1 - 2015Q2. What is the formula for converting nominal to real GDP? Using that formula, construct a time series for real GDP. Then plot the series for nominal and real GDP on the same figure. Provide a legend and make your figure presentable. Answer – The formula for converting nominal to real GDP is by dividing the nominal GDP with that of the respective year’s price deflator. 0.00 2000.00 4000.00 6000.00 8000.00 10000.00 12000.00 14000.00 16000.00 18000.00 20000.00 1980-01-01 1982-06-01 1984-11-01 1987-04-01 1989-09-01 1992-02-01 1994-07-01 1996-12-01 1999-05-01 2001-10-01 2004-03-01 2006-08-01 2009-01-01 2011-06-01 2013-11-01 REAL GDP NOMINAL GDP VALUE
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