Homework2 - Personal Income and Its Disposition . Be smart...

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Econ 352 YiLi Chien Intermediate Economics Spring 2011 Homework Assignment 2 Due on March 23 rd Question 1: Unemployment Rate (20 pts) What is the definition of unemployment rate? List the cause of frictional unemployment and structural unemployment respectively. Question 2: Growth Rates (20 pts) If real GDP grows at 2% a year, how many years does it take for GDP to double? What is the general formula for the doubling of a time series that grows at a percent a year? Question 3: Saving Rate (30 pts) Go to the BEA web page ( www.bea.gov ) and get quarterly data for U.S. personal saving rate from 1980 to 2009. (Look for “ Personal saving as a percentage of disposable personal income ” on Table 2.1
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Unformatted text preview: Personal Income and Its Disposition . Be smart and download the data, NOT copy them by hand). Plot the saving rate data over time (turn in the figure only do not show the table). What do you see? Question 2: GDP Growth Rates Data (30 pts) Go to Penn World Table ( http://pwt.econ.upenn.edu/php_site/pwt63/pwt63_form.php ) and compute the average per capita real GDP growth rate for 10 countries between in 1971 and in 2000: you should choose 5 countries from G7 countries and another 5 countries should be less developed/developing countries and use Real GDP per capita (Constant Prices: Laspeyres), derived from growth rates of c, g, i. Briefly describe what you see in the data....
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