Using the St. Louis Federal Reserve Bank’s
FRED database (http://research.stlouisfed.org/
fred2/) examine the differences in consumption
behavior between the United Kingdom
and the United States.
a. Download annual data from 1955 to the
present on nominal private final consumption
expenditure in the United Kingdom
(GBRPFCEADSMEI) and the United
States (USAPFCEADSMEI). For the same
time period, download annual data on
nominal GDP for the United Kingdom
(GBRGDPNADSMEI) and the United
States (USAGDPNADSMEI).
b. Calculate consumption’s share of GDP for
both the United Kingdom and the United
States. Plot the two series on a graph.
c. What differences and similarities do you
see in the two data series?