Problem
Using the Federal Reserve Economic Data (FRED) database, let's sum up real GDP using its components. Recall that GDP = C + I + G + Net Exports, so start by finding “Real personal consumption expenditures†(C), use the “Billions of Chained 2009 Dollars, Quarterly, Seasonally Adjusted Annual Rate†series. Now click Add Line and find a similar series for real investment (I). Now click Add Line again and look for Real Government Consumption Expenditures and Gross Investment (G), again in billions of dollars. Now click on Add Line one more time and look for real Net Exports (NX) (the last series is only available in this form since 1999).
a. Graph the result. (Electronically generated graph)
b. In the 2009 recession which series fell by the most?
c. In the first quarter of 2010, what share of GDP was made up by Consumption? Note that you should not have to look up a separate GDP figure to make this calculation.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.