Question: The data file (g d p 5) contains the data on (G D P) displayed in Figure 12.1. a. Is (G D P) stationary or

The data file $g d p 5$ contains the data on $G D P$ displayed in Figure 12.1.

a. Is $G D P$ stationary or nonstationary? Explain your choice of test equation.

b. What is the order of integration of GDP?

c. Construct and estimate a suitable model for forecasting GDP in 2017Q1. What is your forecast?

Data From Figure 12.1:-

18- 16- 14- 12- 10- 8- 0.3 13 0.2 0.1 0.0- -0.1

-0.2- -0.3- 6mm 84 86 88 90 92 94 96 98 00

18- 16- 14- 12- 10- 8- 0.3 13 0.2 0.1 0.0- -0.1 -0.2- -0.3- 6mm 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 (a) Real gross domestic product (GDP), Strillion (quarterly) -0.4 pppsproprspor 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 (b) Change in GDP (quarterly) 16- 3 2 I- 0- INF 12- -1- -2- 55 60 65 70 75 80 85 90 95 00 05 10 15 (c) Inflation, percent (monthly) -3 55 60 65 70 75 80 85 90 95 00 05 10 15 (d) Change in inflation (monthly)

Step by Step Solution

★★★★★

3.28 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Introductory Econometrics Modern Questions!

Forecasting an Income Statement ADP reports the following income statement. AUTOMATIC DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2019, $ millions Total revenues...

The data file usdata5 contains the data on inflation displayed in Figure 12.1. a. Is inflation stationary or nonstationary? Explain your choice of test equation. b. What is the order of integration...

Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...

(i) Write down the linear program relaxation for the vertex cover problem and solve the linear program. [6 marks] (ii) Based on the solution of the linear program in (b)(i), derive an integer...

Remember in class we used a short program to count how many of each alphabetic character was found on an input line? Then we modified it to read from Shakespear's Macbeth instead, counting how many...

QUESTION 31 A vacation resort has collected data on 150 resort guests to study their spending behavior. In particular, they are interested in whether their rewards program increases guest spending....

Question set 2: (650 words.) The CFO appreciates a concrete hedging analysis to validate your advice in your answer to Question 1. A dataset is collected from trading platforms and is provided for:...

Holt's model differs from simple exponential smoothing in that it includes a term for - the span of a moving average is short - say, 3 months - then few observations go into each average, and extreme...

Hello, you already did chapter 1 and 2 of my MASTERS Thesis already for me. (See attached) So normally you know masters thesis consist of 5 chapters right ??..... But in this case my thesis will be 4...

Time Series Data Mining: A Case Study With Big Data Analytics Approach ABSTRACT Time series data is common in data sets has become one of the focuses of current research. The prediction of time...

SIX RepeatedMeasures Download the following SPSS Data Set. Activity 6.sav Websites Reference Field text companion site. Provides access to SPSS data files. http://www.sagepub.com/field4e/main.ht m...

A country exhibits the paradoxical situation of having negative net investment income (NII) of -100 and a positive net international investment position (NIIP) of 1000. Economists opinions about this...

The section of a beam with hollow circle at its center for 6 m. Unit weight of concrete is 24 kN/m3 . Concrete compressive strength, fc = 28 MPa and fct = 2.8 MPa. In this problem, b1 = 250 mm, b2 =...

Which of the following is the proper way to report a gain contingency? Question 3 options: 1 ) As an accrued amount. 2 ) As deferred revenue. 3 ) As an account receivable with additional disclosure...

4 If blocked, or not fully repatriable, funds can be liberated by a new foreign project, how can the value of these funds to the investor be factored into a projects APV?

Michelle is an employee who must use her personal automobile for employment-related business trips. During 2017, Michelle drives her car 60% for business use and incurs the following total expenses...

Amelie is an employee who uses her personal automobile in connection with her job. During 2017, Amelie drove her car a total of 28,000 miles. Her business log shows that she drove 22,400 miles for...

Your client, Charley Long, age 40, has requested your advice with respect to his IRA. He has a traditional IRA with a balance of $250,000 and his current AGI is $150,000. He expects his income to...

The risk free rate is 5 . 0 percent. The expected return on the market portfolio is 1 2 . 5 percent and the standard deviation of the market portfolio is 2 1 . 5 0 percent. You wish to create a...

2. Prepare a horizontal analysis of Fantasy Football's 2021 balance sheet using 2020 as the base year. (Negative amounts and Decreases should be indicated by a minus sign. Round your percentage...

GE has the following securities outstanding: a senior bond, a junior bond, a preferred stock, and a common stock. The preferred stock should carry __________ and ________ compared to the junior bond....