Plot the 12-month percentage growth rates in total real government expenditures and in real government expenditures from
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Plot the 12-month percentage growth rates in total real government expenditures and in real government expenditures from 1948 to 2015. Calculate these growth rates from quarterly data. Do you think your plot shows any evidence that government spending crowds out private consumption? Why or why not?
Answer this question using the Federal Reserve Bank of St. Louis’s FRED database, accessible at http://research.stlouisfed.org/fred2/
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