The table as below presents the Real Disposable Personal Income (per capita, chained 2012 dollars) from...

 

 

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The table as below presents the Real Disposable Personal Income (per capita, chained 2012 dollars) from 1981 to 1990 in the US. Note: For your reference, the slides of "Lecture 1d" explain why we need to use logarithm (natural logarithm) in economic analysis. Also, this handout shows you how to convert the numerical values into their logarithm values. (1) Transform the real income of dollar values (the 2nd column) into natural logarithm (Ln) values (the 3rd column). An example is given in the year 1981. You may use calculator, spreadsheet or other devices to calculate the in values. Year 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 Real Income 21,849 22,113 22,669 24,016 24,518 25,219 25,548 26,508 27,027 27,250 In (Real Income) 9.992 10.004 10.029 10.086 10.107 10.135 10.148 10.185 10.205 10.213 Plot the time-series graphs of yearly Real Income and Ln (Real Income) over time (with respect to Year) in two separate graphs. That is the first graph plots yearly Real Income. The second graph plots yearly Ln (Real Income). And the X-axis should depict the time horizon in both graphs (on a yearly interval). The table as below presents the Real Disposable Personal Income (per capita, chained 2012 dollars) from 1981 to 1990 in the US. Note: For your reference, the slides of "Lecture 1d" explain why we need to use logarithm (natural logarithm) in economic analysis. Also, this handout shows you how to convert the numerical values into their logarithm values. (1) Transform the real income of dollar values (the 2nd column) into natural logarithm (Ln) values (the 3rd column). An example is given in the year 1981. You may use calculator, spreadsheet or other devices to calculate the in values. Year 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 Real Income 21,849 22,113 22,669 24,016 24,518 25,219 25,548 26,508 27,027 27,250 In (Real Income) 9.992 10.004 10.029 10.086 10.107 10.135 10.148 10.185 10.205 10.213 Plot the time-series graphs of yearly Real Income and Ln (Real Income) over time (with respect to Year) in two separate graphs. That is the first graph plots yearly Real Income. The second graph plots yearly Ln (Real Income). And the X-axis should depict the time horizon in both graphs (on a yearly interval).

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Here are the steps to complete the question 1 Transform real income val... View the full answer