MS. RAGAZZO'S CLASSROOM



_________________________________________________________________________________________________AP Macroeconomics GDP Data Project(100 Points Possible)This project will be due end of class Thursday February 1. The project is to be submitted through Google doc. or slides. Be certain to read each question carefully to determine what you are required to produce to answer the question. The purpose of this term project is to allow you the opportunity to locate, access, compile and analyze publicly available macroeconomic data. Developing a good working knowledge of sources of macroeconomic data can potentially help you in later economics coursework or in your future employment. You may work with one other individual on this project. Each pair of students will only to have to submit one write up of the term project. You may of course choose to work and submit the project individually._________________________________________________________________________________________________________Data Sources: The advent of the Internet has led to an explosion of available economic data. Listed below is just a small sampling of the resources available to you to help in completing this assignment. If you have trouble finding any data please don’t hesitate to ask for some hints. It is important that you carefully cite any and all sourcesGetting StartedResources for Economists on the Internet (RFE): A comprehensive site listing sources for economic data and economics information in general. Website: . Economic Data Sources1. Historical Statistics of the United States (HSUS): An excellent source in finding historical economic data. Website: . Economic Report of the President: An annual report published by the President’s Council of Economic Advisors, which provides a snapshot view of the U.S. economy. A past issue of the report is available for download. Website: . Bureau of Labor Statistics: Good place to find data on labor. Website: . St. Louis Federal Reserve: A good source of monetary data. Website: Data Sources1. CIA World Factbook: This site has useful information about many countries (demographic and economic). Website: . Statistical Division of the United Nations: Contains a wealth of economic and socioeconomic data for hundreds of countries. Website: . World Bank: Another useful site for international data. Website: http:// econ.4. : NationMaster is a vast compilation of data from such sources as the CIA World Factbook, UN, and OECD. Website: the first FIVE questions for full credit. If you choose to attempt to answer question SIX you will get a bonus of 10% for this assignment.For each question clearly indicate the source of your data. If you obtained the data from a website, be sure to include the link of the site.Question #1: The Data of Macroeconomics: GDP(a) Obtain data for the following variables for the United States in 2016.1. Gross Domestic Product (Y)2. Consumption (C)3. Investment (I)4. Government Spending (G)5. Exports (EX)6. Imports (IM)(b) Confirm that Y = C + I + G + (EX – IM)(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? Question 2: The Data of Macroeconomics: Measuring Growth rate of Real GDP per person.(a) For the United States, find real GDP for the following years:1960, 1970, 1980, 1990, 2000, 2010, 2016(b) For the United States, find the total population for the following years:1960, 1970, 1980, 1990, 2000, 2010, 2016(c) Calculate real GDP per capita of the United States for the following years:1960, 1970, 1980, 1990, 2000, 2010, 2016(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, 2010-2016(e) Based on your calculations in which decade did real GDP per capita grow the fastest in theUnited States? In which decade did it grow the slowest? Question #3: The Data of Macroeconomics: GDP as a Measure of WelfareSenator 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 person 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.(a) For this exercise, choose FOUR countries from EACH INCOME CATEGORY. YouMUST choose the United States as one of your four countries from the high income category For each of the 12 countries you have selected. Find the following data:1. real GDP per person2. adult literacy rate (total)3. life expectancy at birth (total)4. infant mortality rate (per 1000 live births)5. physicians (per 1000 people)6. Income share held by highest 10% of the population7. Income share held by lowest 10% of the population8 Mobile Phones per capita9. Internet users (per 100 people)10. Televisions per capitaNote: Some countries may not have up to date data. For these countries use the most recent date you can find. (a) Present your findings in a table.(b) 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 12 countries using your additional measure.(c) Compare the United States to other three countries you chose in the high income group. In which measures do the United States compare poorly against other rich nations? In which measures does the United States fare better against other rich nations?(d) 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 #4: Economic Growth and Population GrowthResearch the Solow model. In the model, countries that have higher population growth rates should have a lower steady state level of capital (holding all other factors constant). This would imply that these countries would have lower income per capita compared to countries with lower population growth rates.For each of the 20 countries listed below find the most recent data on the(i) level of income per person(ii) population growth rate1. Angola 2. Belgium 3. Benin 4. China5. Denmark6. Finland 7. Greece 8. Guinea-Bissau9. India 10. Japan 11. Nicaragua 12. Niger13. Nigeria 14. Portugal 15. Senegal 16. South Africa17. Tanzania 18. Thailand 19. Venezuela 20. Zimbabwe(a) Present your data in a table.(b) Using a spreadsheet program such as Excel, plot the data points. In your graph, population growth rate should be on the x-axis while income per person should be on the y-axis. You should include a trend line (Excel can do this for you) in your graph to show the general relationship between population growth and income per capita. Does the data support the Solow model conclusion?[Note: Because income per person will vary a lot---some countries will have income of $30,000 while other countries will have incomes of less than $1000---you should convert your income data into natural log or ln(income). For example, if real GDP for Belarus was $8000 you would convert it as ln (8000) = 8.99. This will make it easier to graph if income is measured in natural logs. Excel has a function that will automatically calculate the natural log of a number.] Question 5: Presidential Elections and the EconomyWhen Bill Clinton ran for president 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 aPresident 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, 2016For each of the above years find the following information:(a) Which party was currently in power in the White House?(b) Did the presidential candidate of the incumbent party win the election?(c) What was the unemployment rate in the election year?(d) What was the annual inflation rate in the election year?(e) What was the growth rate in income per person in the election year?(f) 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.(g) 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.(h) Find the latest data on unemployment rate, annual inflation rate, and growth rate in income per capita. If these numbers remain unchanged through 2020, does the historical trends suggest good or bad news for President Obama? EXTRA CREDITQuestion #6: The Data of Macroeconomics: 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, 1974.(b) Calculate the inflation rate between 1972-1973 and between 1973-1974 using the CPI measure.(c) Calculate the inflation rate between 1972-1973 and between 1973-74 using the GDP-deflator 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? AP Macroeconomics GDP Data Project RubricsContentCriteria54321PointsQuestion 1a, b, and c are answered and the information is accuratea, b, and c are answered and the information is mostly accuratea, b, and c are answered and the information is mostly inaccuratea, b, and c are answered and the information is inaccuratea, b, and c are not answeredX2Question 2a, b, c, d and e are answered and the information is accuratea, b, c, d, and e are answered and the information is mostly accuratea, b, c, d, and e are answered and the information is mostly inaccuratea, b, c, d, and e are answered and the information is inaccuratea, b, c, d, and e are not answeredX2Question 3a, b, c, and d are answered and the information is accuratea, b, c, and d are answered and the information is mostly accuratea, b, c, and d are answered and the information is mostly inaccuratea, b, c and d are answered and the information is inaccuratea, b, c, and d are not answeredX2Question 4a and b are answered and the information is accuratea and b are answered and the information is mostly accuratea and b are answered and the information is mostly inaccuratea and b are answered and the information is inaccuratea and b are not answeredX2Question 5 a, b, c, d, e and f are answered and the information is accurate a, b, c, d, e are answered and the information is mostly accurate a, b, c, d, e are answered and the information is mostly inaccurate a, b, c, d, e are answered and the information is inaccuratea, b, c, d, e are not answeredX2FormatCriteria54321PointsSubmissionProject is submitted on time shared in Google doc. or Google slide5 points taken off for each day late. Only Google doc. or Google slide accepted X2ResponsesQuestions are answered in full sentences with detailed supporting factsQuestions are answered with detailed supporting factsQuestions are answered in full sentences with some or little detailed supporting factsQuestions are answered with some or little detailed supporting factsQuestion are answered with no supporting factsX2Charts and GraphsAll charts and graphs are included and are clearly labeled, detailed, and easy to decipherAll charts and graphs are included and but are not clearly labeled, detailed, and easy to decipherSome charts and graphs are included and are clearly labeled, detailed, and easy to decipherSome charts and graphs are included and but are not clearly labeled, detailed, and easy to decipherCharts and graphs are not includedX2CitationsAll citations are present and properly formattedAll citations are present and are not properly formattedSome citations are present and properly formattedSome citations are present and are not properly formattedCitations are not presentX2Overall AppearanceProject is neatly organized. Title page and table of contents are includedProject is somewhat organized. Title page and table of contents are includedProject is neatly organized. Title page and/or table of contents are not includedProject is somewhat organized. Title page and/or table of contents are not includedProject is not organized. Title page and/or table of contents are not included X2Total Points __________________Extra Credit ____________________Comments: ................
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