A1 (7-2-2011) Money Aggregates - A1 US Money Stock Measurement Data from St Louis FED FRED II The purpose of this assignment is to have you become

A1 (7-2-2011) US Money Stock Measurement Data from St. Louis FED FRED II. The purpose of this assignment is to have you become familiar with the data of the major economic variables we will deal with in the class. Look at the URL’s for the various statistical series and then answer 1) through 4). In part 2) Portfolio, Just view the listed three URL’s so that you are basically familiar with them. We will discuss these further in class. Look at these URL’s and become familiar with the numbers that measure various economic aggregate variables. To complete the assignment, create a word document with the following and paste it in the assignment comment box. From their respective charts 1) Estimate the value of M2 and Monetary Base. Compute the ration of M2 to money base. M2/ Money base = 9700/2600= 3.73 Estimate the value of C urrency and compute C/M2, C=1000, C/M2=1000/9700=0.103 2) Estimate the value of GDP and calculate the ration GDP/ M2. Estimate GDP=15000, GDP/M2=15,000/9,700=1.546 3) Describe the trends of GDP and M2.