Using data from the St. Louis Federal
Reserve (FRED) (http://research.stlouisfed.
org/fred2/), analyze the long-run growth rate of
the United States.
a. Download quarterly data on real GDP
(GDPC1) from 1947 to the present. Calculate
the growth rate of real GDP as the percentage
change from the same quarter during the
previous year. Graph your results. Calculate
the long-run growth trend by calculating the
average growth rate over this time period.
b. What is the standard deviation of quarterly
real GDP growth?
c. What happened to the economy in 2001? Did
the economy return to its long-run growth
trend after this period?
d. Has the economy returned to its long run
growth path since the 2007–2009 financial
crisis?