Macroeconomics 12th Edition by Rudiger Dornbusch, Stanley Fischer ,Richard Startz

تمرين 5

In this problem we will verify equation (3):

a. Go to www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt.htm and retrieve data for the U.S. debt from 1950-2012.
b. Go to http://research.stlouisfed.org/fred2 and click on "Categories," under "National Income Product Accounts" select "GDP/GNP." Find and download data for annual GDP.
c. Calculate the debt-to-GDP ratio (you will need to convert U.S. debt units into billions of dollars).
d. Calculate the percent change in the debt-to-GDP ratio directly using the formula

e. Now calculate the percent change in the debt-to-GDP ratio using equation (3).
f. What is the average difference in the
calculated through these two methods Do they seem equivalent