Real$-$Time Data Analysis Exercise$*$

Before starting this exercise, check out

for help using FRED.

$*$Real$-$time data provided by Federal Reserve Economic Data $($FRED$),$ Federal Reserve Bank of Saint Louis.

Excel question. In order to do a growth accounting exercise for the United States, we need data on output, capital, and labor.

Use the following link

RGDPNAUSA$666$NRUG

to explore the data on Real GDP at Constant National Prices for United States. This represents the value for the United States' real GDP converted into inflation$-$adjusted U$.$S$.$ dollars. Using the "Edit Graph" command, add the series Capital stock at constant national prices for the United States $($RKNANPUSA$666$NRUG$).$ Do the same to add the series Employed population: Aged $15-64$: All persons for the United States $($LFEM$64$TTUSA$647$S$).$

To complete the exercise, you will need to download the data from your graph in the "Excel" format. Then use Excel to perform the calculation. Keep only data for the first year of each decade $($i$.$e$.,1960,1970,...,2010).$

For each series $($Y$,$ K$,$ and N$)$ and decade, compute the average annual growth rate. For example, for real GDP growth in the $1960$s$,$ the formula would be:

$\%$ Upper Delta Upper Y Subscript $1960$ s Baseline equals left parenthesis left parenthesis StartFraction Upper Y $1970$ Over Upper Y $1960$ EndFraction right parenthesis Superscript one tenth Baseline minus $1$ right parenthesis times $100$

The exponent in the formula allows you to turn a $10-$year growth rate into an average annual growth rate.

Fill out the table using your results. $($Enter your answers as a percent rounded to two decimal places.$)$