Make me a list of eight or more things that are supposed to be cause and effect

Question

Make me a list of eight or more things that are supposed to be cause and effect represented in the data.   For example: changes in interest rates cause changes in investment.

Ch-P is the inflation rate

Ch-Y Ch-I Ch-r Ch-M1 Dbt-%Y W/P Ch-P 1965. 6.5 13.8 0.09 4.7 -.2 57.2 1.9 1966. 6.6 9.0 0.65 2.4 -.5 59.4 3.5 1967. 2.7 -3.5 0.14 6.6 -1.0 60.9 3.0 1968. 4.9 6.0 0.57 7.7 -2.8 63.0 4.7 1969. 3.1 5.6 1.03 3.3 .3 63.9 6.2 1970. .2 -6.1 0.68 5.1 -.3 65.0 5.6 1971. 3.3 10.3 -1.19 6.5 -2.1 66.0 3.3 1972. 5.2 11.3 0.05 9.2 -1.9 67.9 3.4 1973. 5.6 10.9 0.64 5.5 -1.1 69.0 8.7 1974. -.5 -6.6 0.71 4.3 -.4 68.0 12.3 1975. -.2 -16.2 0.43 4.7 -3.3 68.9 6.9 1976. 5.4 19.1 -0.38 6.7 -4.1 70.4 4.9 1977. 4.6 14.3 -0.19 8.1 -2.6 71.4 6.7 1978. 5.6 11.6 0.99 8.0 -2.6 72.3 9.0 1979. 3.2 3.5 1.02 6.9 -1.6 72.4 13.3 1980. -.2 -10.1 2.00 7.0 -2.6 72.2 12.5 1981. 2.6 8.8 2.49 6.9 -2.5 72.1 8.9 1982. -1.9 -13.0 -0.91 8.7 -3.9 73.0 3.8 1983. 4.6 9.3 -1.91 9.8 -5.9 73.2 3.8 1984. 7.3 27.3 1.36 5.8 -4.7 73.4 3.9 1985. 4.2 -.1 -1.84 12.4 -5.0 74.6 3.8 1986. 3.5 .2 -2.95 16.9 -4.9 77.4 1.1 1987. 3.5 2.8 0.72 3.5 -3.1 77.7 4.4 1988. 4.2 2.5 0.46 4.9 -3.0 78.9 4.4 1989. 3.7 4.0 -0.36 .8 -2.7 77.9 4.6 1990. 1.9 -2.6 0.06 4.0 -3.7 79.1 6.1 1991. -.1 -6.6 -0.69 8.8 -4.4 80.0 3.1 1992. 3.6 7.3 -0.85 14.3 -4.5 82.7 2.9 1993. 2.7 8.0 -1.14 10.2 -3.8 81.9 2.7 1994. 4.0 11.9 1.22 1.9 -2.8 80.9 2.7 1995. 2.7 3.2 -0.52 -2.0 -2.2 80.6 2.5 1996. 3.8 8.8 -0.13 -4.1 -1.3 81.8 3.3 1997. 4.5 11.4 -0.09 -.8 -.3 82.9 1.7 1998. 4.5 9.5 -1.09 2.1 .8 86.6 1.6 1999. 4.7 8.4 0.39 2.5 1.3 88.6 2.7 2000. 4.1 6.5 0.38 -3.1 2.3 92.0 3.4 2001. 1.0 -6.1 -1.01 8.7 1.2 93.6 1.6 2002. 1.8 -.6 -0.41 3.1 -1.5 94.1 2.4 2003. 2.8 4.1 -0.60 7.1 -3.3 95.6 1.9 2004. 3.8 8.8 0.26 5.4 -3.4 97.4 3.3 2005. 3.3 6.4 0.02 -.1 -2.5 97.6 3.4 2006. 2.7 2.1 0.51 -.5 -1.8 98.2 2.5 2007. 1.8 -3.1 -0.17 .6 -1.1 99.8 4.1 2008. -.3 -9.4 -0.97 16.7 -3.1 98.6 .1 2009. -2.8 -21.6 -0.40 5.7 -9.8 100.0 2.7 2010. 2.5 12.9 -0.04 8.4 -8.7 100.2 1.5 2011. 1.6 5.2 -0.44 17.7 -8.5 99.2 3.0 2012. 2.3 9.2 -0.98 13.4 -6.8 99.9 1.7 2013. 2.2 4.9 0.55 8.0 -4.1 99.9 1.5 2014 p. 2.4 6.0 0.19 9.5 -2.8 100.4 .8

Explanation / Answer

1) Changes in money supply leads to change in aggregate supply of money which will reduce the demand for money and finally will lopwer the interest rate.

2) Increase in Government debt will reduce national income and ultimately will reduce real GDP.

3) GDP = C+I+G

Decrease in investment will decrease real GDP.

4) Investment and interest rate are inversly related so if interest rate increasesInvestment will fall and ultimately real GDP will also fall.

5) increase in inflation will reduce money supply which will increase interest rate and Income.

6) Since real wage is directly proportional to real GDP if wage rate decreases GDP will fall.

7) With increase in money supply price level will go down and it will affect real wage index.

8) If we consider income as independent variable that means if income increases first then it will increase investment, decrease budget deficit, will increase money demand and inrease money supply also.

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