Question

Use the data in the Table to answer the questions asked in 4a and 4b on each of the 3 variables for the US economy:

a. Calculate the changes in inflation rates, unemployment rates and the RGDP growth rates for the years from Year 2007 through 2014 and show them in a new column next to each of the values of the three variables (a template of the table is given below). 5 pts

Year Real GDP RGDP growth rate in % Unemployment Rate Change in U rate in % CPI Indices Inflation rate in %
2006 14,613.8 - 4.6% - 201.6 -
2007 14,873.7 ? 4.6% ? 207.3 ?
2008 14,830.4 ? 5.8% ? 215.3 ?
2009 14,418.7 ? 9.3% ? 214.53 ?
2010 14,783.8 ? 9.6% ? 218.05 ?
2011 15,020.6 ? 8.9% ? 224.93 ?
2012 15,369.2 ? 8.1% ? 229.59 ?
2013 15,710.3 ? 7.4% ? 232.96 ?
2014 16,089.8 6.2 236.74

Source: for CPI and U-Rate date: www.bls.gov
For RGDP data: www.bea.gov

b. Based on those calculations, briefly describe the overall economic performance over the last 8 years (2007-2014) and critically predict about these three macroeconomic variables for 2015-16.

Answer 1

Answer on Question #50808, Economics, Macroeconomics

a.

b. Based on those calculations, the overall economic performance over the last 8 years (2007-2014) has positive tendency. There was a decline during the crisis of 2008-10, but beginning from 2011 real GDP growth rate increases and unemployment and inflation rate decreases. So, we can predict the real GDP to grow with the growing rate, but unemployment and inflation rate to decrease in 2015-16.

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