(2 marks) Plot the real GDP for the country over time and add an exponential trend line with its equation, which reflects the potential GDP.
Analyze briefly your graph highlighting periods of recession and expansions, as well as finding the long run economic growth rate.
(2 marks) Use real (or constant prices) household Consumption (C), private investment (I) and your data on real GDP (Y). Plot on the same diagram the following
relationships:
C = a + b*Y
I = m + n*Y
Where (a, b, m, n) are constants to be estimated.
is the marginal propensity to consume (MPC)
(1 mark) Assume anything else is constant, find the multiplier (K) for the chosen econom