Problem $3.$ The attached Excel spreadsheet contains two datasets; one is for Canada, and the

other is for the US$.$ You need to conduct the calculations for each country separately. Plot the

detrended real government expenditure v$.$s$.$ the detrended real consumption, and calculate

the correlation coefficient between these time series. Can you identify any crowding$-$out

effects of government expenditure on aggregate consumption? Next, plot the detrended real

GDP v$.$s$.$ the detrended real government expenditure and compute the correlation coefficient

between them. What kind of comovement patterns can you observe? Is the prediction of the

one$-$period model consistent with what you observe?