Economics Assignment 1 & 2

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ECON_GUIDES_Worksheetforassignment1.docx

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JWI 515: Managerial Economics

GUIDES Indicators Worksheet

The Components of

GUIDES

G: GDP & Growth

U: Unemployment & Utilization

I: Inflation & Interest Rates

D: Debt & Deficits

E: External Balances & Exchange Rates

S: Savings & Investment

The purpose of the GUIDES Indicators Worksheet is to help the business leader collect macroeconomic data with confidence and accuracy.

NOTE: This worksheet is an adaptation of a macroeconomic analysis framework presented in: Weinzierl, Matthew, Shlefer, Jonathan, and Cullen, Ann. “GUIDES: Insight through indicators.” Harvard Business School 9-710-044. December 19, 2011 (2011): 1-9

Instructions

You will use this Worksheet to collect your data in the form of Economic Indicators for two Countries. There are six sections that you need to complete: G, U, I, D, E, and S. When they are all complete, you will be ready to submit the Worksheet document as Assignment 1.

I. Save your GUIDES Document:

· The GUIDES Indicators Worksheet is a standard Word document

· To save the worksheet on your computer for use in Assignment 1, complete the following steps:

· Go to File > Save As

· Choose your Destination (a folder on your computer)

· Click Save

· Use the following format for your filename: LastName_FirstName_JWI515_GUIDES_Worksheet.docx

· e.g. Doe_John_JWI515_ GUIDES_ Worksheet.docx

II. Follow these steps to collect your data:

· Enter your two Country names at the top of each page

· Use the two websites below to find your data:

· Trading Economics website (http://www.tradingeconomics.com)

· Doing Business website (http://www.doingbusiness.org)

· Enter your research data into the Worksheet by clicking into the cells with the Latest Entry, Trend, and Healthy? Labels

· In the Healthy? Column, you can delete the answers that are not correct, or you can highlight the correct answer

· Submit your GUIDES Indicators Worksheet document as Assignment 1 at the end of Week 3

Sample Data – Use examples below as a model on how to complete your GUIDES Worksheet.

Indicator	Meaning	Country: United States	Country: Mock Country Data
		Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?	Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?
Consumer Spending	Private consumption, or an exchange of money for goods and services. Includes private purchases of durable goods, nondurables, and services.	$11922bil Oct2017 Quarterly	Steady rise since 2010. $11853bil in Jul2017. $11758bil in Apr2017.	Yes – a rise in spending indicates a growing economy	$91795mil Jul2017 Quarterly	Steady rise since 2008. 91584mil in Apr2017. 91475mil in Jan2017.	Yes – a rise in spending indicates a growing economy
Food Inflation	Change in the cost of food over the same month in the prior year.	1.20% Oct2017 Monthly	Steady rise since <0.4%> in Oct2016. 0% in Feb2017. 0.9% in June2017.	Yes – when an economy is not running at capacity, inflation increases production	5.70% Oct2017 Monthly	Relatively flat. +/- 0.25% for past year.	No – assumes production at capacity and demand will start to fall off
Wage Growth	Change in wage and salary disbursements from service, government, & manufacturing industries over the same month in the prior year.	3.22% Sep2017 Monthly	Steady rise. 2.75% in Aug2017 2.49% in Jul2017	Yes – company can charge more for goods and pay higher wages	0.7% Jan2017 Monthly	Holding flat 0.6% in Oct2016 0.6% in Jul2016	Not clear
Sales Tax	Tax charged to consumers based on the purchase price of certain goods and services.	0% Yearly	Flat, no change. No national sales tax in the US.	No- Gov’t taxes only personal & corporate incomes.	17% Yearly	Same since 2004. 1989-2003 = 15%. France/UK = 20% Italy = 22% Sweden = 25%	Yes. On par with other advanced economies.

G = GDP & Growth Click here to access the Trading Economics website

Indicator	Meaning	Country:	Country:
		Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?	Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?
GDP Value	Measures national income and output. GDP is equal to the total expenditure for all final goods and services produced within the country.			Yes No Not clear			Yes No Not clear
GDP Value Constant Prices	GDP adjusted for inflation. Measures the GDP value in base year dollars.			Yes No Not clear			Yes No Not clear
GDP Annual Growth Rate	Percentage change in GDP.			Yes No Not clear			Yes No Not clear
GDP per capita PPP	GDP value divided by total population.			Yes No Not clear			Yes No Not clear
Ease of Doing Business	Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.			Yes No Not clear			Yes No Not clear

U = Unemployment & Utilization Click here to access the Trading Economics website

Indicator	Meaning	Country:	Country:
		Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?	Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?
Unemploy- ment Rate %	Percentage of unemployed workers in the total labor force. It is low during good economic times and high during recessions.			Yes No Not clear			Yes No Not clear
Labor Force Participation	Number of people who are either employed or are actively looking for work.			Yes No Not clear			Yes No Not clear

I = Inflation & Interest Rates Click here to access the Trading Economics website

Indicator	Meaning	Country:	Country:
		Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?	Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?
Interest Rate %	The price for holding money – time value of money or cost of money.			Yes No Not clear			Yes No Not clear
Inflation Rate %	Represents the long run inflation rate; transitionary price changes are excluded.			Yes No Not clear			Yes No Not clear

D = Debt & Deficits Click here to access the Trading Economics website

Indicator	Meaning	Country:	Country:
		Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?	Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?
Government Debt	Debt owed by a government. (also known as public interest, national debt and sovereign debt)			Yes No Not clear			Yes No Not clear
Government Debt/GDP	Ratio between a country’s government debt and its gross domestic product. A low ratio indicates that the country can sufficiently pay back its debts without incurring debts.			Yes No Not clear			Yes No Not clear
Credit Rating	An estimate of the ability of an entity to fulfill its financial commitments.			Yes No Not clear			Yes No Not clear
Corporate Tax Rate	The tax rate for Corporations.			Yes No Not clear			Yes No Not clear

E = External Balances & Exchange Rates Click here to access the Trading Economics website

Indicator	Meaning	Country:	Country:
		Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?	Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?
Currency	A system of money. The value of the money changes over time.			Yes No Not clear			Yes No Not clear
Imports	Amount of goods purchased by one country from another.			Yes No Not clear			Yes No Not clear
Exports	Amount of goods purchased by foreigners from a country.			Yes No Not clear			Yes No Not clear

S = Savings & Investment Click here to access the Trading Economics website

Indicator	Meaning	Country:	Country:
		Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?	Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?
Personal Savings	When a person rather than a company saves money to spend or invest later.			Yes No Not clear			Yes No Not clear
Consumer Confidence	Based on consumers’ perceptions of current business and employment conditions, as well as their expectations for six months hence regarding business conditions, employment, and income.			Yes No Not clear			Yes No Not clear

Additional Indicators (optional) Click here to access the Trading Economics website

Use this optional page to capture data on Indicators that you believe are relevant to understanding your chosen country’s economy or relevant to your specific industry. Potential additional indicators include, but are not limited to:

· Business Confidence	· External Debt	· Living Wage Family
· Capacity Utilization Rate	· Foreign Direct Investment	· Personal Income Tax Rate
· Consumer Price Index	· Government Spending	· Productivity
· Disposable Personal Income	· Housing Starts	· Tourist Arrivals

Indicator	Meaning	Country:	Country:
		Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?	Latest Entry & Frequency	Trend	Healthy (Y/N) & Why?
				Yes No Not clear			Yes No Not clear
				Yes No Not clear			Yes No Not clear
				Yes No Not clear			Yes No Not clear

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