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# We Helped With This Macroeconomics Assignment: Have A Similar One?

Category | Economics |
---|---|

Subject | Macroeconomics |

Difficulty | Undergraduate |

Status | Solved |

More Info | Macroeconomics Assignment Help |

## Short Assignment Requirements

## Assignment Description

Homework 1

*ECON 311
Spring 2017*

*Due: Jan
20, 2017*

For this homework assignment you will test the Law of Demand at the aggregate level by comparing Consumption to the Price Level. In other words, you will be testing the following hypothesis:

*H*_{0 }:
Consumption declines when the Price Level rises.

Term | FRED Code | Description |

P | CPIAUCSL | Consumer Price Index for All Urban Consumers: All Items |

C | PCECC96 | Real Personal Consumption Expenditures |

1. Use the fred() command to download the time series in the table above. Use the Table() command on each series. Report the time frequency (‘yearly’, ‘quarterly’, or ‘monthly’) of each series.

2. Use splot() with Price on the vertical axis and Consumption on the horizontal axis.

3. Discuss the relationship between Price and Consumption. Based on this plot, should we reject the hypothesis?

4. Take the ‘yearly’ growth rates of each series using G(x, 'y') command, where x is the series. Then use Table() on each of the new series.

5. Use splot() again. Should we reject the hypothesis? Discuss why or why not. If different than in (3), why is it different?

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