1) Download nominal and real GDP from the Bureau of Economic Analysis website. Rename this spreadsheet something instructive (you know … including your last name, Homework 5, and ECON 3020). Of course, you can also just copy the data you already have in other spreadsheets.

2) Enter your T-number in the following blocks so that it ends in the last block on the right.

3) Write the value in the darker shaded cell on the far right in the empty box below:

4) Write the value in the lighter shaded cell on the far right in the empty box below:

5) Note that your entries for numbers 3 and 4 look like years. Write out the two years: ______________ to ________________. This is the sample of real GDP data that you will be working with for this homework (and other forthcoming homeworks). Note that it will be close to your neighbors and friends, but is unlikely to be exactly the same. This means that your results should be close enough to be generally comparable to your friends and neighbors, but not close enough that you could copy their results.

6) I am assuming that by this point you “get” the idea that for each regression you should create a set of columns in your data worksheet. You will be doing Regressions 1 through 5. Here are the sets of variables. Label each column. Also, add a row above the label indicating whether each variable is a Y or an X. Separate the sets of columns with a narrow empty column. Label the sets too. You may use this table as a reference:

Regression	Variables Used
1	Natural log of annual real GDP Deterministic trend
2	Natural log of annual real GDP Deterministic trend Lagged natural log of annual real GDP
3	Natural log of annual real GDP Lagged natural log of annual real GDP
4	Natural log of annual real GDP Lagged natural log of annual real GDP
5	Differenced n3704atural log of annual real GDP Lagged differenced natural log of annual real GDP

7) Run Regressions 1-3 and 5 (you may create the residuals using the checkbox — you won’t use those for this homework, but you will for the next one). Put each regressions output in its own worksheet. Clean up those worksheets as indicated in the Handbook. As noted in class, you don’t actually have to estimate Regression 4 to know what it will look like.

8) Consider Regression 2. In its worksheet, address whether the coefficient on the deterministic trend is significantly different from zero. Does your answer indicated that Regression 3 should be an improvement over Regression 2?

9) Consider Regression 3. In its worksheet, address whether the coefficient on the lagged natural logs of real GDP is significantly different from one. Does your answer indicated that Regression 4 should be an improvement over Regression 3?

10) Consider Regression 5. In its worksheet, address whether the coefficient on the differenced lagged natural logs of real GDP is significantly different from zero. Does your answer indicated that Regression 5 should be an improvement over Regression 4?

11) Turn in hard copies of the worksheets for Regressions 1-3 and 5. Also turn in (one page, with text reduced in size) showing the data sets for your Regressions. This should be about 15 columns wide, and needs to show at least the first 10 rows of data you used. You may e-mail me a copy of your worksheet to prove that your assignment isn’t late — but it’s still your responsibility to slide the hard copies under my door when you’re in the building.