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High information density

What you see is a graph I made for a school assignment (click for popup). 110 data points. A lot of clutter. It correlates movements in the ratio of {consumption | government spending | investment | net exports} to GDP to GDP growth in Denmark from 1980 to 2002.

Posted by Guan Yang on December 1, 2003 05:26 PM |

Comments

... and what does all the clutter mean?

Posted by: Simon | December 1, 2003 05:31 PM

Government spending and consumption fall as a percentage of GDP throughout the period. Net exports and investment are more dependent on the business cycle: investment is cyclical (it rises in periods A and C, which have a recovery, and falls in period B, which is a recession) while net exports is countercyclical.

During a recovery demand increases and businesses have an incentive to invest in order to expand capacity. Also, imports tend to rise, lowering net exports.

Posted by: Guan Yang | December 1, 2003 05:37 PM

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