(30 marks) Rosencrantz and Guildenstern are two politicians from rival parties who have seen the results from Part I and Part II. According to Rosencrantz the evidence plainly suggests that government expenditure crowds in investment, i.e. more government expenditure will inevitably cause higher investment. Guildenstern argues based on the same charts that government ex- penditure crowds out investment, i.e. the causation runs the other way. In 500 words or less, explain the patterns in the eight graphs you have produced and why the relationship appears so di§erent depending on whether you use nominal variables, real variables or a fraction of GDP. Who is right, Rosencrantz, Guildenstern, or consider that perhaps neither is right?
b) (10 marks) For both Part I and Part II compare the patterns of the graphs in sections c) and d) where in each case the data is denominated as fractions of GDP. Do the patterns exactly match or do they di§er slightly? Explain why or why not.
For a custom paper on the above topic or any other topic, place your order now!

What Awaits you:

• On-time delivery guarantee

• Masters and PhD-level writers

• Automatic plagiarism check

• 100% Privacy and Confidentiality

• High Quality custom-written papers