Part A: The chart shows the rate of growth of U.S. ‘real’ GDP (i.e., GDP measured in constant prices). It uses quarterly data, with each observation showing the annual per cent change from the same quarter in the previous year (e.g. Q1 1998 relative to Q1 1997, Q2 1998 relative to Q2 1997, etc.).
a. Use Global Financial Data (GFD) to obtain quarterly data for the ‘real’ GDP of a country other than the United States. You must choose a country whose quarterly ‘real’ GDP data begin in 1960 or earlier (note that GFD’s quarterly data may go back only so far, and that for earlier years it reports only annual data; these annual data must be deleted from your dataset for the purpose of the presentation here). Using quarterly data, calculate the annual growth rate of the country’s ‘real’ GDP.
Part B: Based on the growth rates of the U.S. and the country you have chosen, assess the following statement: ‘Neoliberalism, which started in the early 1980s, has made the two countries more unstable’.
Question 2: Use Mergent to obtain the following time-series data for a corporation of your choice: (a) net income (profit after taxes), and (b) sales revenues. Both series have to go back at least 10 years. Using these data, compute the times series for the corporation’s markup (the ratio of net profit to sales revenues). Plot all three series on the same chart: net income and sales on the left axis and the markup on the right axis (use a log scale if needed). Document the exact sources of your data, including variable names when appropriate (try to quantify your answer by assessing the relative deviations of each variable).
What is the main cause of the variation of profit – is it changes in sales or changes in the markup?
What substantive conclusion can you draw from this answer? (Note that, since profit is the product of sales and the markup, it is co-determined by both measures, by definition. The question here concerns the relative importance of their respective variations.)
Important: Please use the additional PDF file to support all the evidence in the paper and please do not plagiarize from any source and use citations to support all the evidence laid out in the paper.