Question

Problems update with real-time data in MyLab Economics are available for practice or instructor assignment. 1. Go to the St. Louis Federal Reserve FRED database, and find data on the M1 Money Stock (M1SL), M1 Money Velocity (MIV), and Real GDP (GDPC1). Convert the M1SL data series to "quarterly" using the frequency setting, and for all three series, use the "Percent Change from Year Ago" setting for units. a. Calculate the average percentage change in real GDP, the M1 money stock, and velocity since 2000:Q1.

Answer 1

To calculate the average percentage change in real GDP, the M1 money stock, and velocity, access the St. Louis Federal Reserve FRED database, find the required data, and use the appropriate settings. Then, calculate the average by summing up the percentage changes and dividing by the number of quarters.

Step-by-step explanation:

To calculate the average percentage change in real GDP, the M1 money stock, and velocity since 2000:Q1, you need to access the St. Louis Federal Reserve FRED database and find the data on the M1 Money Stock (M1SL), M1 Money Velocity (MIV), and Real GDP (GDPC1). Then, convert the M1SL data series to 'quarterly' using the frequency setting, and for all three series, use the 'Percent Change from Year Ago' setting for units. Once you have the data, you can calculate the average percentage change by summing up all the percentage changes and dividing by the number of quarters since 2000:Q1.