1. From the National Income and Product Accounts, published by the BEA, download quarterly data on nominal gross domestic product [Table 1.1.5] and the implicit price deflator [Table 1.1.9] from 1980Q1-2015Q2. What is the formula for converting nominal to real GDP? Using that formula, construct a time series for real GDP. Then plot the series for nominal and real GDP on the same figure. Provide a legend and make your figure presentable.

2. Calculate and plot (on a separate figure) the annualized percent change (quarter-over-quarter) in real GDP from 1980Q1-2015Q2. Which quarters had the largest decline?

3. Using the recession dates according to the National Bureau of Economic Research (NBER), provided at http://www.nber.org/cycles.html, answer the following questions:

(a) How many recessions has the U.S. economy undergone since 1980?

(b) How many quarters has each recession lasted?

(c) In terms of length and magnitude, which two recessions have been the most severe? Then, on the figures you made in questions 1 and 2, shade each recession with gray bars.

4. Using data from the FRED, download monthly data on the unemployment rate (UNRATE) from 1995M1-2015M6. Then download an alternative definition of the unemployment rate, which also includes marginally attached workers and those who work part-time for economic reasons (U6RATE). Plot both of these time series on the same graph. Provide a legend and make your figure presentable. How are marginally attached workers defined? Shade each recession in your figure with gray bars. How does the unemployment rate change
during each recession? Explain why. Which recession had the largest increase in the rate of unemployment? Recently, what has happened to the unemployment rate?