Civic Engagement
1) Complete the Table below:
• Columns 2 & 3 below using Nominal and Real GDP data GDPLEV.XLSX (download this document from Canvas)
• Calculate the percent annual change in GDP in Column 4 and the GDP deflator in Column 5.
• Using the information in Column 5, calculate the inflation rate for each year and record inflation in Column 6.
• Use data from https://www.bls.gov/regions/midwest/data/consumerpriceindexhistorical_us_table.pdf to populate Column 7 (inflation from CPI) (Report CPI-U Avg-Avg each year)
1 2 3 4 5 6 7
Year Nominal GDP in billions Real GDP in billions (chained) % annual change in Real GDP GDP deflator Annual Inflation based on GDP deflator Inflation from CPI
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2) Based on the data in Columns 2 & 3 (Nominal and Real GDP), which year is being used as the base year?
3) Create a line graph showing how the percent annual change in Real GDP has changed over the years. Put YEAR on the X axis and percent annual change in Real GDP on the Y axis. Plot the graph and label your axes.
4) Given the graph you created in #3 and the data above, what is the current business cycle position for the US economy based on the most-recently available data you presented above (end of 2019)?
Since the reporting of last year’s data, do you think this trend has continued? Why or why not?
5) Column 6 (Inflation based on the GDP deflator) differs from Column 7 (inflation based on CPI). Why?
6) Using information from https://www.bls.gov/news.release/empsit.a.htm, answers the following questions:
a) current unemployment rate =
b) month and year of (a) above =
c) is the current rate higher or lower than it was a year ago?
d) current labor force participation rate =
e) is the current rate higher or lower than it was a year ago?
f) unemployment rate for white workers =
g) unemployment rate for black or African American workers =
h) unemployment rate for those with only a high school degree =
i) unemployment rate for those with “some college or an associate’s degree” =
j) unemployment rate for those with a bachelor’s degree or higher =
k) is the number of people who are classified as “Job Leavers” higher or lower than it was a year ago? What does this change suggest about the health of the economy? Why?