Assume only these products were produced and spent on in an economy.

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 of the mandate was FED targeting in 2004 through 2005?