Dynamic Growth Rate Model

Question

Question- Download the U.S. Gross Domestic Product time series and comment on the dynamics of growth rates in recessions versus expansions. Follow the NBER dating of recessions from 1955 to date. Describe how long recessions and expansions last and any other features that describe the U.S. business cycle.(Use Derivations,formulas, Charts, diagrams, tables)

Answer 1

Hi Randeep,

Question - Download the U.S. Gross Domestic Product time series and comment on the dynamics of growth rates in recessions versus expansions. Follow the NBER dating of recessions from 1955 to date. Describe how long recessions and expansions last and any other features that describe the U.S. business cycle.(Use Derivations,formulas, Charts, diagrams, tables)

1. Recessions see negative growth rates(the economy contracts) and expansions see positive growth rates(the economy grows/expands). On the time series, recessions will be shown as dips on the graph and expansions shown as peaks. Look on the x-axis to gage how long the dips and peaks last.