Econ Data Exercise

DATA EXERCISE 

consists of three parts

Part 1: The Unemployment Rate (weight 30% of the assignment grade)

Complete the following exercise

Visit the Bureau of Labor Statistics Web Site,

www.bls.gov/news.release/empsit.toc.htm . Select Employment Situation Summary.

Write a report (1-2 pages double – spaced) to answer the questions:

1. What month      (and year) is summarized? What was the unemployment rate for that month?      How does that rate compare with the rate in the previous month?
2. What were      the unemployment rates for adult women, teenagers, blacks, Hispanics, and      whites? How did these rates compare with those a month earlier?
3. What      factors make it difficult to determine the unemployment rate?
4. Why is      unemployment an economic problem?

1. What are the noneconomic effects of unemployment?
2. Who loses from unemployment?

Part 2: The Inflation Rate (weight 30% of the assignment grade)

Complete the following exercise:

Visit the Bureau of Labor Statistics Web Site,

www.bls.gov/news.release/cpi.toc.htm . Select Consumer Price Index Summary.

Write a report (1-2 pages double – spaced) to answer the questions:

1. What month      (and year) is summarized? What was CPI-U for that month?
2. What was the rate of inflation      (percentage change in the CPI-U) for the month?How does that rate      of inflation compare with the rate in the previous month?

1. Which two      categories of goods or services had the greatest price increase for the      month?
2. Which two      categories of goods or services had the lowest price increase (or greatest      price decrease) for the month?
3. Who loses      from inflation?

Part 3 CPI, PPI and GDP deflator – (weight 40% of the assignment grade)

Complete the following exercise:

One of the largest single influences on the level of interest rate is inflation. There are a number of sites that report inflation over time. Go to http://www.gpoaccess.gov/eop/ – the home page ofthe Economic Report of the President.

Select the following three tables: (a) Choose Table B–63.—Change in special consumer price indexes, (b) Table B–68.— Change in producer price indexes for finished goods; and (c) Table B–3. Quantity and price indexes for gross domestic product, and percent changes

• From the table B-63. Copy change in special consumer price indexes All Items Dec. to Dec. from 1970 to the most recent year into a separate spreadsheet.
• From the table B-68 Copy Change in producer price indexes for finished goods – Total finished goods – Dec. to Dec. from 1970 to the most recent year in to the same spreadsheet.
• From the table B-3 Copy Percent change from preceding period- Gross domestic product (GDP) – GDP implicit price deflator from 1970 to the most recent year in to the same spreadsheet.
• Plot these three series on the same graph. Present the tables and the graph in your report.

b) Write a report (1 page double – spaced), which contains the analysis of the results that you received.

In this paper consider, but do not be limited to the following:

How inflation is measured? What year had the lowest level of inflation? What year had the highest level of inflation?