Plot the exchange rate on the y-axis and days on the x-axis

Assignment Help Macroeconomics

Reference no: EM131144013

Macroeconomics Data Analysis Project-

Question 1: Gross Domestic Product (GDP)

(a) Obtain data for the following variables for the United States in 2015.

i. Gross Domestic Production (Y)

ii. Consumption (C)

iii. Investment (I)

iv. Government Spending (G)

v. Exports (X)

vi. Imports (M)

(b) Confirm Y ≡ C + I + G + NX

(c) What share of GDP is composed of consumption? What share of GDP is composed of investment? What share of GDP is composed of government spending? What share of GDP is composed of exports? What share of GDP is composed of imports?

Use Excel to create a pie chart of your findings.

Question 2: Price Indices-

(a) Obtain data for the consumer price index (CPI) and the GDP deflator (use the chain-type price index for GDP) for the following years: 1972, 1973, and 1974.

(b) Calculate the inflation rate between 1972-1973 and between 1973-1974 using the CPI measure.

(d) In late 1973, OPEC (Organization of the Petroleum Exporting Countries) tripled the price of oil. How can this fact explain the difference in inflation rate between 1973-74 using the CPI measure vs. the GDP-deflator measure?

Question 3: Measuring Growth Rate of Real GDP per capita

(a) For the United States, find real GDP for the following years: 1960, 1970, 1980, 1990, 2000, 2010, 2015.

(b) For the United States, find the total population for the following years: 1960, 1970, 1980, 1990, 2000, 2010, 2015.

(c) Calculate real GDP per capita of the United States for the following years: 1960, 1970, 1980, 1990, 2000, 2010, 2015.

(d) Calculate the growth rate of real GDP per capita of the United States for the following decades: 1960-1970, 1970-1980, 1980-1990, 1990-2000, 2000-2010, 2010-2015.

(e) Based on your calculations in which decade did real GDP per capita grow the fastest in the United States? In which decade did it grow the slowest?

Question 4: GDP as a Measure of Welfare

Senator Robert Kennedy running for President in 1968 once remarked that: Gross Domestic Product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our courage, nor our wisdom, nor our devotion to our country. It measures everything, in short, except that which makes life worthwhile, and it can tell us everything about America except why we are proud to be Americans.

Despite this criticism, macroeconomists tend to use real GDP per capita more or less as a measure of the standard of living across countries. Critics argue that other variables such as life expectancy, education, income inequality are better measures of standard of living across countries. This question looks at whether or not there is a strong correlation between real GDP and these alternative measures of well being.

For this exercise, choose three countries from each income category. You MUST choose the United States as one of your three countries from the high income category:

High Income Countries	Middle Income Countries	Low Income Countries
Canada	Botswana	Bangladesh
Finland	Brazil	Cambodia
Italy	China	Chad
Japan	Egypt	Haiti
South Korea	Poland	Mali
Spain	Thailand	Taijikistan
Unite States (Required)	Turkey	Yemen

(a) For each of the 9 countries you have selected. Find the following data

i. Real GDP per capita

ii. Adult literacy rate (total)

iii. Life expectancy at birth (total)

iv. Infant mortality rate (per 1000 live births)

v. Physicians (per 1000 people)

vi. Income share held by highest 10% of the population

vii. Income share held by lowest 10% of the population

viii. Mobile Phones per capita

ix. Internet users (per 100 people)

x. Televisions per capita

(b) Present your findings in a table. Your table should have the following format:

Country

Real GDP per capita

Year (date of information)

Total Adult Literacy Rate

Year (date of information)

Etc....

(c) Suggest an alternative measure of standard of living that was not among the 10 variables listed above. Justify why you believe your suggested variable is a good measure of standard of living. Find and present the data for the 9 countries using your additional measure.

(d) Compare the United States to other two countries you chose in the high income group. In which measures do the United States compare poorly against other rich nations? In which measures do the United States fare better against other rich nations?

(e) In general, what can you say about the relationship between real GDP and these other measures of well being? Is real GDP a reasonable measure of standard of living? Why or why not?

Question 5: Presidential Elections and the Economy

When Bill Clinton ran for office in 1992, his famous campaign slogan was "It's the economy, stupid!" The meaning behind the slogan was that economic policy and the state of the economy has a powerful influence on the outcome of an election. Is it true that a poor economy is always bad news for a party in power? Does this imply that a President should try to manipulate an economy in order to improve their re-election chances (or the election chances of the nominee of their party)?

Consider every presidential election since 1948. That is look at the following presidential election years: 1948, 1952, 1956, 1960, 1964, 1968, 1972, 1976, 1980, 1984, 1988, 1992, 1996, 2000, 2004, 2008, 2012.

For each of the above years, find the following information:

(a) Which party was currently in power in the White House?

(b) Who was the current President of the United States?

(d) Who was the current President of the United States Senate (Vice President of the

United States)?

(e) Which party held majority in the House of Representatives?

(f) Who was the current Speaker of the House and their political party?

(g) Did the presidential candidate of the incumbent party win the election?

(h) What were the Popular Vote and the Electoral College results?

(i) What was the unemployment rate in the election year?

(j) What was the annual inflation rate in the election year?

(k) What was the growth rate in income per capita in the election year?

(l) What was the debt-to-GDP ratio in the election year

(m) Plot the values you obtained for unemployment rate, annual inflation rate, growth rate income per capita and debt-to-GDP ratio from each election year between 1948-2012 on separate line graphs. Plot each economic indicator on the y-axis and years on the x-axis. Be sure to include axis-labels, grids, title and adjust the axes scale accordingly. Move each graph to its own tab.

(n) Calculate the average unemployment rate, average inflation rate and average growth rate of income per capita in the cases where the incumbent party kept the White House.

(o) Calculate the average unemployment rate, average inflation rate and average growth rate of income per capita in the cases where the incumbent party lost the White House.

(p) Find the latest data on unemployment rate, annual inflation rate, and growth rate in income per capita. If these numbers remain unchanged through the remainder of 2016, does the historical trends suggest good or bad news for the incumbent party (Democratic Party)?

Question 6: What is the FOREX?

The foreign exchange market - also called forex, FX, or currency market - trades currencies.

Aside from providing a floor for the buying, selling, exchanging and speculation of currencies, the forex market also enables currency conversion for international trade and investments. The forex market has unique characteristics and properties that make it an attractive market for investors who want to optimize their profits. The exchange is known for having high liquidity, long business hours (24 hours a day, five days a week), a form of leverage and is the largest market in the world of finance with an average of $4 trillion traded daily.

(a) Collect daily data from January 1, 2013 to July 1, 2016 for the following exchange rates:

i. U.S. Dollar / Euro

ii. U.S. Dollar / British Pound

iii. U.S. Dollar / Japanese Yen

iv. U.S. Dollar / Chinese Yuan

v. U.S. Dollar / Mexican Peso

vi. U.S. Dollar / Swiss Francs

vii. U.S. Dollar / Bitcoin

viii. British Pound / Euro

(b) Using Excel, make a line graph for each exchange rate. Plot the exchange rate on the y-axis and days on the x-axis. Be sure to include axis-labels, grids, title and adjust the axes scale accordingly. Move each graph to its own tab.

Reference no: EM131144013

Questions Cloud

What is the purpose of your proposed antiharassment policy : Why is it important to have such a policy in place? If the basic purpose is to stop harassing behavior, why is that important? Why is harassment detrimental to an organization?

What issues of transference are displayed by the client : What issues of transference are displayed by the client? Explain in your own words. Did the consultant act ethically by allowing the client to be discharged? Discuss.

Select one of the disorders covered in the book : Select one of the disorders covered in the book (object agnosia, prosopagnosia, color agnosia, movement agnosia, or neglect) to research in more detail. Locate a research report or other scientific article about this disorder in the Walden Library..

Do you find anything objectionable in miller claims here : What does Milgram believe is the relationship between the obedience and individual morality? And how would Milgram evaluate Edward Snowden's decision to leak classified information about what he believed to be unconstitutional practices within the..

Plot the exchange rate on the y-axis and days on the x-axis : sing Excel, make a line graph for each exchange rate. Plot the exchange rate on the y-axis and days on the x-axis. Be sure to include axis-labels, grids, title and adjust the axes scale accordingly. Move each graph to its own tab

Calculate the amplitude of motion : Calculate the amplitude of motion caused by the unbalanced force, (b) the transmissibility ratio, and (c) the magnitude of the force transmitted to ground through the isolator.

Display the last name and phone number of all dog owners : Display the last name and phone number of all dog owners. Use a subquery to do this. Display the first and last name of owners and the type of animal of all unknown breeds. Display the pet name and owner last name of all dogs.

What areas of need your treatment plan should address : Details of your assessment plan: What areas of need your treatment plan should address, specific instruments selected, along with reasons for selecting them.

Determine the minimum wall thickness t that can be used : A steel pipe of 100-mm diameter is to support the loading shown. Knowing that the stock of pipes available has thicknesses varying from 6 mm to 24 mm in 3-mm increments, and that the allowable normal stress for the steel used is 150 MPa

User Account

All Pages