Use the data in the Table below to answer the questions asked in a and b on each of the 3 variables for the US economy:
a. Calculate the changes in inflation rates, unemployment rates and the RGDP growth rates for the years from Year 2007 through 2016 and show them in a new column next to each of the values of the three variables (a template of the table is given below). 5 pts
|
Year |
Real GDP |
RGDP growth rate in % |
Unemployment Rate |
Change in U rate in % |
CPI Indices |
Inflation rate in % |
|
2006 |
14,613.8 |
– |
4.6% |
– |
201.6 |
– |
|
2007 |
14,873.7 |
? |
4.6% |
? |
207.3 |
? |
|
2008 |
14,830.4 |
? |
5.8% |
? |
215.3 |
? |
|
2009 |
14,418.7 |
? |
9.3% |
? |
214.53 |
? |
|
2010 |
14,783.8 |
? |
9.6% |
? |
218.05 |
? |
|
2011 |
15,020.6 |
? |
8.9% |
? |
224.93 |
? |
|
2012 |
15,354.6 |
? |
8.1% |
? |
229.59 |
? |
|
2013 |
15,612.2 |
? |
7.4% |
? |
232.96 |
? |
|
2014 |
16,013.3 |
? |
6.2% |
? |
236.74 |
? |
|
2015 |
16,471.5 |
? |
5.3% |
? |
237.02 |
? |
|
2016 2017 |
16,716.2 17,092.7 |
? ? |
4.9% 4.4% |
? ? |
240.01 245.12 |
? ? |
Source: for CPI and U-Rate date: www.bls.gov; For RGDP data: www.bea.gov
b. Based on those calculations, briefly analyze the overall economic performance over the last 9 years (2007-2017) and critically predict about these three macroeconomic variables for 2018-20. 5 pts
Hint: While predicting the trend for 2018-2020 (based on the growth rates and trend you estimated in the table above), it is imperative to observe the most recent data on these three variables.
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