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Unformatted text preview: The change in GDP is not subject to any certain variables, for many variables affect the change in GDP. I chose three variables that I believe will have a considerable impact on the change in GDP: change in consumption, change in investment, and change in unemployment rate. It is apparent that consumption and investment are directly related in finding the total GDP. I believe the change in consumption to have a consistent positive relationship with the change in GDP; the more consumers spend the more likely GDP will increase. I believe change in investment will also provide a positive relation to change in GDP. A strong investment should provide for greater capital, which will increase productivity. The third variable, change in unemployment rate, I believe to have a negative relationship to the change in GDP. I suspect that a decrease in the unemployment rate from year to year will correspond to an increase in the change of GDP. The data for the three independent variables and dependent variable (GDP) is shown in Appendix A. This data is time series data from 1970-2000....
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This note was uploaded on 02/22/2011 for the course GDP 115 taught by Professor Kates during the Spring '06 term at Kaplan University.
- Spring '06