ECON-301
Macroeconomic Analysis
Dr. Bell
WS04

Project (Due Wednesday, April 28)

You will be allowed to work in groups of four (no more). Using the various sources you have been exposed to, collect the following data and present it (graphically) as indicated below. You should hand in a single graph for each of the problems (one graph per page), along with one 1.44 MB disk. Save each graph on your disk. You will have one file for each problem below. Name the files Q1, Q2, Q3, etc., indicating question #1 , #2, . . . .It is important to label your graphs (axes, legends, etc.), to indicate the appropriate units (e.g. billions of dollars, millions of people, etc.), to provide a title for each graph, and to cite (below each graph) the source of the data (i.e. where did you get the figures you used to make the graph). An example appears on the back of this page.

 

  1. On the same line graph, plot nominal GDP and real GDP (1970-2002). (Be sure to indicate the benchmark year). Think: Why is nominal GDP sometimes above and sometimes below real GDP?
  2. On the same line graph, plot nominal GDP and total (or aggregate) Consumption Expenditure, Investment Expenditure, Government Expenditure and Net Exports (1989-2002). Think: Which variable(s) appear to have driven the 1990s "boom"?
  3. On a bar graph, plot household consumption and household disposable income (1990-2002). Think: What does this imply about the size of the MCP?
  4. On the same line graph, plot the unemployment rate and the federal budget surplus/deficit as a percent of GDP (1990-2002). Think: Do you notice any kind of a pattern?
  5. On the same bar graph, plot corporate profits in the financial industry (excluding profits of federal reserve banks) and non-financial industry (1960-2002). Think: What might account for the difference?
  6. On the same line graph, plot the Total Unemployment Rate for ‘Males’ vs. ‘Females’ (1960-1997). Think: Why aren't those in the labor force, regardless of gender, equally likely to be unemployed?
  7. On a bar graph, plot the Capacity Utilization Rates for the Total Industrial Sector (1970-2002). Think: What does this imply about the Classical Model and it's production function model of output determination?
  8. On a pie chart, show the Share of Household Income for the lowest quintile (i.e. the lowest 20%), the second quintile, the third quintile, the fourth quintile, and the highest (fifth) quintile. Think: Would a redistribution of income affect production levels (i.e. GDP) or the unemployment rate?
  9. On a line graph, show non-government wage and salary accruals and total corporate profits (including inventory valuation adjustment and capital consumption adjustments) for (1970-2002). Think: Do both tend to rise and fall at about the same pace?
  10. On a line graph, show total personal consumption expenditures, total durable goods expenditures, total non-durable goods expenditures, and total expenditure on services (1960-2002). Think: How has the pattern of household spending changed over the last 40+ years?