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Category	Economics
Subject	Macroeconomics
Difficulty	Undergraduate
Status	Solved
More Info	Macroeconomics Assignment Help
6018	1

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it actually require r studio to complete this homework

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:

H₀: 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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We Helped With This Macroeconomics Assignment: Have A Similar One?

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