In this box you will work with the HP-filter. This is a procedure to decompose economic variables into a trend and a cycle. The HP-filter allows for a flexible time-varying trend, in contrast to imposing a constant trend over long periods of time ---say, decades. Since long-term trends change (eventually), this provides a better measure of the cycles i.e. deviations from trend. The purpose of the box is to calculate the co-movement and volatility of consumption and investment relative to GDP, all measured in real terms. You need to use table 1.1.6 from BEA.gov once again; starting in 1984:Q1 to the latest available year at a quarterly frequency. The smoothing parameter (lambda) for quarterly data is 1,600. The box has to describe the nature of the filter and report the correlation and volatility of the cyclical components of GDP, consumption, and investment over time. The focus will be on the COVID-19 Pandemic, which derailed the longest expansion the U.S. history and affected most macroeconomic series. To create the box follow these steps: Go to NIPA Table 1.1.6 in the Bureau of Economic Analysis website (bea.gov), and 'Modify' to download the quarterly data for GDP, consumption, and investment