Go to the St. Louis Federal Reserve FRED database, and find data on the labor force, capital stock, GDP, and the price level for Turkey and South Korea, with data codes provided in the table below. Download each country’s data on a separate spreadsheet by using the add data series feature.

a) Convert GDP and the capital measure to real GDP and real capital, respectively, by dividing each by the price index measure for each year, then multiplying by 100. Do this for each country.

b) Now convert real GDP and real capital to per-worker measures by dividing each by the labor measure for each year, and calculate k^0.3 for each year. Do this for each country.

c) Use the data on output per person and k^0.3 to calculate a measure of total factor productivity (A) for each year. Do this for each country.

d) For each country, for both A and k, calculate the average growth rate per year from the year 2000 to the most current data available by calculating the total percentage change in the variable and dividing by the number of years in the sample, up to the most recent data available. Based on growth in total factor productivity in the two countries, what do you expect should happen to real GDP per capita in each country?

e) Based on your answer to part (d) above, use the growth accounting equation to determine the average growth rate per year of real GDP per capita from 2000 to the most recent data available.

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Country GDP South Korea MKTGDPKRA646NWDB Turkey MKTGDPTRA646NWDB Capital Price Index KORGFCFADSMEI KORLFTOTADSMEI KORGDPDEFAISMEI TURGFCFADSMEI TURLFTOTADSMEI TURGDPDEFAISMEI Labor