Assume only these products were produced and spent on in an economy. Calculate the Nominal GDP and Real GDP for 2010, 2011, and 2012 BURGERS COKE Quantity Price Quantity Price 2010 (Base Year) 100,000 $5 75,000 $1 2011 50,000 $6 45,000 $1.25 2012 100,000 $5.50 75,000 $1.10 Is Real GDP or Nominal GDP a better indicator of the changes in an economy? Why? Assume that in an economy, the total number of employed people is 100, total unemployed is 8, and civilian non-institutional population is 125. Calculate the unemployment rate, and labor force participation rate of that economy. Use the link for Real GDP (Chained Dollars) below from BEA (Bureau of Economic Analysis) http://www.bea.gov/iTable/iTable.cfm?&#&&& Create a table of % change in Real GDP Numbers for the past 10 quarters (2013, 2014 and Q1 and Q2 2015) on a quarterly basis. Include the major components of GDP as well (C, G, I, X and M). Note: No need to get net exports. Keep X and M separate Should look something like this DP: GDP = C + I + G + (X - M). %Change Q1 Q2 Q3 2013 Q4 2013 Q1 Q2 Q3 Q4 Q1 Q2 2013 2013 2014 2014 2014 2014 2015 2015 Real GDP C I X M G What is the data telling you about the changes in economy in the last 2.5 years? Which components of the economy has performed well and which have not? Use the link below from BLS (Bureau of Labor Statistics) http://www.bls.gov/news.release/pdf/cpi.pdf Create a table of % change in CPI for last seven months. Feb 2015 through Aug 2015 %Change Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 All Items Food Energy Items Less Food and Energy What is the data telling you about changes in price levels in the last 6 months? Use the link below from BLS for employment statistics http://www.bls.gov/web/empsit/cpsee_e01.pdf Create a table of employment data (total employment) for last 10 quarters (2.5 years) which is 2013, 2014 and two quarters of 2015 Table should look like this Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 Unemployment Rate Civilian Labor Force Participation Rate Unemployed Review the trend in participation rate in the last three years. Is it a good or bad trend. Why? Use the link below from FRBNY (Federal Reserve Bank New York) http://www.newyorkfed.org/markets/statistics/dlyrates/fedrate.html Create a table of Fed Fund Target rate for last 9 years as set by FED. Table should look like this. Note: FF rates are not released on exactly quarter end. If there are no quarter end data, use the most previous data for that quarter. Dec-04 Jun-05 Dec-05 Jun-06 Dec-07 Jan-08 Mar-08 Oct-08 Dec-08 Dec-09 Dec-10 Dec-11 FF Rate New Level Dec-12 Dec-13 Dec 2014 FF Rate New Level What are the dual mandates of FED? Based only on the changes in FF rates, which of the two mandates was FED attempting to focus more from 2008 onwards? Which o ...