Ration of real residential investment to real GDP

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Reference no: EM13802556

Calculate and graph the ration of: (i) real residential investment to real GDP; (ii) real non-residential investment to real GDP; and (iii) real inventory investment to real GDP.

(a) Which of the components of investment shows the most (least) variability, in terms of its contribution to the variability in real GDP?

(b) Provide possible explanations for the patterns you detected in part (a).

Reference no: EM13802556

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