This exercise will familiarize you with the U.S. economy. First a long-run look at the U.S.GDP.1. (33 points) Go to the U.S. Bureau of Economic Analysis web site (www.bea.gov).Download the annual Gross Domestic Product data between 1929-2010.(a) (8 points) Plot the data against time. Make sure your graph is perfectly labeled.Include a copy of your graph in your printed assignment.(b) (4 points) Prepare a table like the one below, ll it out, and include it in yourprinted assignment.1930s1960s 1990s 2000sAverage Annual GrowthRate of U.S. GDP (%)1930s means from 1930 to 1939. To nd the average annual growth rate in the1930s, you need to nd the annual growth rate for each year and then take theaverage of the growth rates.(c) (7 points) Apart from changes in productive capabilities of the U.S., what elsecontributes to the growth rates you calculated? Name at least two things.(d) (10 points) Go to the U.S. Bureau of Labor Statistics web site (www.bls.gov).Download the annual not seasonally-adjusted data for CPI (all urban consumers,U.S. city average, all items) between 1929-2010. Use the CPI values together withthe GDP values you downloaded from BEA to calculate the real U.S. GDP. Plotthe real GDP data you calculated against time. Make sure your graph is perfectlylabeled. Include a copy of your graph in your printed assignment.1(e) (4 points) Prepare a table like the one above for real GDP, ll it out, and includeit in your printed assignment.Now a short-term look at the U.S. economy.2. (33 points) Using the BEA web site, get the quarterly Real GDP (chained 2005dollars) data between 2005-2010. (Hint: Use Table 1.1.6.)(a) (13 points) Plot the data against time. Make sure your graph is perfectly labeled.Include a copy of your graph in your printed assignment.(b) (15 points) Using the same table, get the data for Consumption Spending, In-vestment Spending, and Government Spending. On your spreadsheet application,calculate the quarterly growth rates of real GDP, real C, real I, and real G. Plotthese growth rates against time on a single graph. Include a copy of your graphin your printed assignment.(c) (5 points) Which component of real GDP has drastically changed during the2009 recession?3. (13 points) Go to the BLS web site and download unemployment rate data for eachmonth between 2005-2010. You will calculate the average quarterly data from themonthly data. For example, for the rst quarter of 2005, add the unemployment ratesin January, February, and March, and divide the sum buy 3. This is going to be theunemployment rate for the rst quarter of 2005.(a) (9 points) Plot the quarterly unemployment rate against time. Make sure yourgraph is perfectly labeled. Include a copy of your graph in your printed assign-ment.(b) (4 points) Look at the unemployment rate graph and the quarterly real GDPgraph from previous question. How do you think they are related? Why are theyrelated like that? Use the arguments we made in class to explain the relationship.4. (16 points) Go to the BLS web site. Download the annual not seasonally-adjusteddata for PPI (use commodity data NOT industry data, all commodities) between 1929-2010.(a) (10 points) On the same graph, plot the annual CPI and PPI values. Include acopy of your graph in your printed assignment.Notice that until about 1985, the two series follow one another rather closely.However, after 1985 they are quite di erent in value.(b) (3 points) If you were to calculate the ination rate between 1985-2001, whichseries would give you a higher ination rate? Explain.(c) (3 points) If you were to calculate the ination rate between 2001-2008, whichseries would give you a higher ination rate? Explain.