Macro Homework

ACCESSING GDP DATA (Section worth 6 points)

Go to the Bureau of Economic Analysis website and access the latest press release on GDP. Also, access the actual data from http://www.bea.gov/national/index.htm#gdp. Download the “Current-dollar and ‘Real’ GDP” data into Excel. 

1. Using the column for labeled “GDP in billions of chained 2009 dollar” create a scatter-plot graph of the previous 16 quarters (four years of data). In Excel, add a trend line. Paste an image of the actual file. (3 points)

2. Based on your review of the press release and this data, provide a 200-250 word summary of the current state of the US economy in terms of output. What are the trends? Are the trends normal or unusual during the past three years? (3 points)

   ACCESSING INFLATION DATA (Section worth 6 points)

   Go to the Bureau of Labor and Statistics website and access the latest press release on the Consumer Price Index http://www.bls.gov/news.release/cpi.toc.htm.  Also, access the actual data from the BLS on CPI http://data.bls.gov/cgi-bin/surveymost?bls. Select the CPI for All Urban Consumers (CPI-U) 1982-84=100 (Unadjusted) - CUUR0000SA0 box.

3. Using the tool provided by the BLS website, create a graph of the CPI over the past three years and paste an image. (3 points)

4. Based on your review of the press release and this data, provide a 200-250 word summary of the current state of the US economy in terms of inflation. What are the trends? Are the trends normal or unusual during the past three years? (3 points)

   ACCESSING EMPLOYMENT DATA (Section worth 6 points)

   Go to the Bureau of Labor and Statistics website and access the latest press release on the official Unemployment Rate. http://www.bls.gov/cps/#news . Also, access the actual data from the BLS on Employment http://data.bls.gov/cgi-bin/surveymost?bls. Select the Civilian Unemployment (Seasonally Adjusted) - LNS13000000 box.

5. Using the tool provided by the BLS website, create a graph of unemployment over the past three years and paste an image. (2 points)

6. Now, also select the Civilian Labor Force (Seasonally Adjusted) - LNS11000000 box and past an image of the past three years. (1 point)

7. Based on your review of the press release and these data, provide a 200-250 word summary of the current state of the US economy in terms of unemployment. What are the trends on Labor Force Participation and Unemployment Are the trends normal or unusual during the past three years? (3 points)

   COMPARING U3 AND U6 UNEMPLOYMENT RATES (Section worth 2 points)

   Go to the Bureau of Labor and Statistics website and access the latest press release on Unemployment. http://www.bls.gov/cps/#news. You should have this information available from the above question. Now search on the BLS site for the U6 Unemployment Rate. It should show up as “Table A-15 Alternative measures of labor underutilization.”

8. What is the most recently reported U-6 rate for the United States? Describe the factors that make the difference between the U-6 and U-3 calculations. (2 points)