Go to the St. Louis Federal Reserve FRED database and find data on the net saving rate

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Go to the St. Louis Federal Reserve FRED database and find data on the net saving rate as a percentage of national income (W207RC1A156NBEA).

a) Calculate the average net saving rate over the period from 1960 to 1980, and again for the period from 1980 to the most current available data.

b) Based on your answer to part (a), what do you expect will happen to real GDP per capita in the United States?

c) Compare the average net saving rate for the 1960–1980 period and the post- 1980 period with real GDP per capita (USARGDPC) in 1980 and in the most current available year, respectively. Do your results match the results predicted by the Solow model? Why or why not?

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