Question: Question 1. Okun's Law [3 marks] Obtain the data for the Australian real GDP growth rates (quarterly) and Unemployment rates that are available on FRED

Question 1. Okun's Law [3 marks] Obtain the data for the Australian real GDP growth rates (quarterly) and Unemployment rates that are available on FRED (https://fred.stlouisfed.org/#) from 1966-10-01 to 2022-07-01. The information about the series is given in the following table. Code of the series Name of the series LRHUTTTTAUQ156S Harmonised Unemployment - Monthly Rates: Total: All Persons for Australia, Percent, Quarterly, Seasonally Adjusted NAEXKP01AUQ657S National Accounts: GDP by Expenditure: Constant Prices: Gross Domestic Product - Total for Australia, Growth rate previous period, Quarterly, Seasonally Adjusted (a) Using the data construct a scatter plot of change in unemployment vs. real GDP growth rates. Use MS Excel. [0.5 mark] (b) Construct the trend line and show the estimation of the trend line. Determine how well the data fit the regression model for the trend line. [1.0 mark] (c) Determine the average growth rate of full-employment output for Australia. [1.0 mark] (d) Suppose that in a recessionreal GDP growth falls 1 percent over 1 year. Predict the rate of unemployment rise using the estimated Okun's law. [0.5 mark]

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