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Go to the FRED database and collect data on the three macroeconomic variables (i.e., GDP growth rate (i.e., available in quarterly frequency), Unemployment rate (i.e., available in monthly frequency but calculate the quarterly rate), and inflation rate (i.e., available in monthly frequency but calculate the quarterly rate)) for U.S. economy and conduct the following activities: a. Plot these series and describe them in one paragraph. b. Okun’s Law: Run a simple regression and see if the proposition (claim) by Okun’s Law is still valid for the period of 1990 – 2018. c. Philips Curve: Run a simple regression and see if the proposition (claim) by the Philips Curve is still valid for the period of 1990 – 2018.
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