this assignment we will look at the dynamics of Real GDP and Real M2 Money stock

INSTRUCTIONS TO CANDIDATES

ANSWER ALL QUESTIONS

STATA assignment 

1 Real GDP and Money Supply

In this assignment we will look at the dynamics of Real GDP and Real M2 Money stock. Your task is to plot the same time series from FRED data base for 1960-2021 to mainly see what happened with those variables during 2020 pandemic year. We will use these variables from FRED

• GDPC1

• M2REAL

We will use this command

• tsline

• date() and year()

• qofd()

• tsset

• label

• format

• sum

• drop/keep

• lpattern

2 Task

1. download data on Real GDP and Real M2 money stock from FRED database making sure both time series are in quarterly format

2. load data on Real GDP and Real M2 money stock using the import command

3. convert date variable using data() command

4. format converted date variable i.e. show new date variable in Stata default date format like 19jun2014 using the format

5. keep quarter year from converted date variable i.e. generate year quarter variable name that variable time using qofd() and format %tq

6. set the time for the graph using the specifying quarterly option

7. generate a year variable using year() and keep observations for years above 1959

8. relabel variables to ”Real GDP” and ”Real Money M2 Money Stock”

9. check the summary of the time variable using sum to see min and max values for the time variable

10. plot Real GDP and Real M2 money stock using Celine make sure their colors are set to be navy and gold and use xlabel() to vary x-axis between min and max values of the variable time (figure out the the step in xlabel() command so years are presentable and year 2020 depicted on the graph)

11. include , format(%tqCY) option in the label() so quarters are omitted from the x-axis

12. draw a dashed vertical line at year 2020q1 using tline specifying line to be gray with 20% opacity

13. Put a title to be Real GDP and Real M2 using title specifying font to be of a medium size

14. save dta file using save

15. Download the same variables for the same time period but changes the units to Percentage change and do from 2 to 13 points above for the new data set but

• label variables as ”Real Money M2 Money Stock growth” and ”Real GDP growth” respectively

• change the ylabel in tsline to the range -10 to 20 with a step of 5

• put a horizontal line at 0 with yline

• change tline opacity from 20% to 60%

• add the word growth to the title

• save dta file using save

3 Draw a conclusion

Based on the graphs you constructed, describe what happened to real GDP and what was the response of the FED in terms of Real M2 money stock during 2020 pandemic year

4 What to submit

Submit the following

1. The graph you obtained in STATA and conclusion that you drew based on the graph

2. STATA do file

3. saved dta file

Attachments:

Related Questions

. The fundamental operations of create, read, update, and delete (CRUD) in either Python or Java

CS 340 Milestone One Guidelines and Rubric  Overview: For this assignment, you will implement the fundamental operations of create, read, update,

. Develop a program to emulate a purchase transaction at a retail store. This  program will have two classes, a LineItem class and a Transaction class

Retail Transaction Programming Project  Project Requirements:  Develop a program to emulate a purchase transaction at a retail store. This

. The following program contains five errors. Identify the errors and fix them

7COM1028   Secure Systems Programming   Referral Coursework: Secure

. Accepts the following from a user: Item Name Item Quantity Item Price Allows the user to create a file to store the sales receipt contents

Create a GUI program that:Accepts the following from a user:Item NameItem QuantityItem PriceAllows the user to create a file to store the sales receip

. The final project will encompass developing a web service using a software stack and implementing an industry-standard interface. Regardless of whether you choose to pursue application development goals as a pure developer or as a software engineer

CS 340 Final Project Guidelines and Rubric  Overview The final project will encompass developing a web service using a software stack and impleme