Civic Engagement Assignment GDP and inflation

NAME: __________________________________________________

Instructions: Complete the questions below. Save the document YOURLASTNAME ECO 201.doc (or .pdf). For example, my submission would be WARNICK ECO 201.doc. If you worked with others, each student must submit their own document.

1. Complete the Table below:

• Columns 2 & 3 below using Nominal and Real GDP data GDPLEV.XLSX (download this document from Canvas)
• Calculate the percent annual change in GDP in Column 4 and the GDP deflator in Column 5. Round to the nearest tenth decimal. (i.e., 1.5789 = 1.6; 1.543 = 1.5).
• Using the information in Column 5, calculate the inflation rate for each year and record inflation in Column 6. Round to the nearest tenth.
• Use data from Consumer Price Index Historical Table (download this document from Canvas) to populate Column 7 (inflation from CPI) (Report Change Avg-Avg)

1	2	3	4	5	6	7
Year	Nominal GDP in billions	Real GDP in billions (chained)	% annual change in Real GDP	GDP deflator	Annual Inflation based on GDP deflator	Inflation from CPI
2006			NA		NA
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

2) Based on the data in Columns 2 & 3 (Nominal and Real GDP), which year is being used as the base year?

3) Create a line graph showing how the percent annual change in Real GDP has changed from 2006 to 2020 (the GDP data you have). Put YEAR on the X axis and percent annual change in Real GDP on the Y axis. Plot the graph and label your axes. [Your graph can be part of this document or be submitted as a stand-alone file].

4) Given the graph you created in #3 and the data above, what was the business cycle position for the US economy at the end of 2020?

Since the reporting of 2020s data, do you think this trend has continued? Why or why not?

5) Column 6 (Inflation based on the GDP deflator) differs from Column 7 (inflation based on CPI). Explain why.

- ZOOM Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 198.3 202.416 211.080 211.143 216.687 220.223 226.665 230.280 233,916 233.707 236.916 242.839 247.867 251.712 257.971 261.582 198.7 203.499 211.693 212.193 216.741 221.309 227.663 232.166 234.781 234.722 237.111 243.603 248.991 252.776 258.678 263.014 199.8 205.352 213.528 212.709 217.631 223.467 229.392 232.773 236.293 236.119 238.132 243.801 249.554 254.202 258.115 264.877 201.5 206.686 214.823 213.240 218.009 224.906 230.085 232.531 237,072 236.599 239.261 244.524 250,546 255.548 256.389 267.054 202.5 207.949 216.632 213.856 218.178 225.964 229.815 232.945 237.900 237.805 240.229 244.733 251.588 256.092 256.394 269.195 202.9 208.352 218.815 215.693 217.965 225.722 229.478 233.504 238.343 238.638 241.018 244.955 251.989 256.143 257.797 271.696 203.5 208.299 219.964 215.351 218.011 225.922 229.104 233.596 238.250 238.654 240.628 244.786 252.006 256.571 259.101 273.003 203.9 207.917 219.086 215.834 218.312 226.545 230.379 233.877 237.852 238.316 240.849R 245.519 252.146 256.558 259.918 273.567 202.9 208.490 218.783 215.969 218.439 226.889 231.407 234.149 238,031 237.945 241.428 246.819 252.439 256.759 260,280 201.8 208.936 216.573 216.177 218.711 226.421 231.317 233.546 237.433 237.838 241.729 246.663 252.885 257.346 260.388 201.5 210.177 212.425 216.330 218.803 226.230 230.221 233.069 236.151 237.336 241.353 246.669 252.038 257.208 260.229 201.8 210.036 210.228 215.949 219.179 225.672 229.601 233.049 234.812 236.525 241.432 246.524 251.233 256.974 260,474 201.6 207.342 215.303 214.537 218.056 224.939 229.594 232.957 236.736 237.017 240.007 245.120 251.107 255.657 258.811 267.999 Percent Change Dec. Dec. Avg. Avg. 2.5 3.2 4.1 2.8 0.1 3.8 2.7 -0.4 1.5 1.6 3.0 3.2 1.7 2.1 1.5 1.5 0.8 1.6 0.7 0.1 2.1 1.3 2.1 2.1 1.9 2.4 2.3 1.8 1.4 1.2 3.5 - ZOOM Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 198.3 202.416 211.080 211.143 216.687 220.223 226.665 230.280 233,916 233.707 236.916 242.839 247.867 251.712 257.971 261.582 198.7 203.499 211.693 212.193 216.741 221.309 227.663 232.166 234.781 234.722 237.111 243.603 248.991 252.776 258.678 263.014 199.8 205.352 213.528 212.709 217.631 223.467 229.392 232.773 236.293 236.119 238.132 243.801 249.554 254.202 258.115 264.877 201.5 206.686 214.823 213.240 218.009 224.906 230.085 232.531 237,072 236.599 239.261 244.524 250,546 255.548 256.389 267.054 202.5 207.949 216.632 213.856 218.178 225.964 229.815 232.945 237.900 237.805 240.229 244.733 251.588 256.092 256.394 269.195 202.9 208.352 218.815 215.693 217.965 225.722 229.478 233.504 238.343 238.638 241.018 244.955 251.989 256.143 257.797 271.696 203.5 208.299 219.964 215.351 218.011 225.922 229.104 233.596 238.250 238.654 240.628 244.786 252.006 256.571 259.101 273.003 203.9 207.917 219.086 215.834 218.312 226.545 230.379 233.877 237.852 238.316 240.849R 245.519 252.146 256.558 259.918 273.567 202.9 208.490 218.783 215.969 218.439 226.889 231.407 234.149 238,031 237.945 241.428 246.819 252.439 256.759 260,280 201.8 208.936 216.573 216.177 218.711 226.421 231.317 233.546 237.433 237.838 241.729 246.663 252.885 257.346 260.388 201.5 210.177 212.425 216.330 218.803 226.230 230.221 233.069 236.151 237.336 241.353 246.669 252.038 257.208 260.229 201.8 210.036 210.228 215.949 219.179 225.672 229.601 233.049 234.812 236.525 241.432 246.524 251.233 256.974 260,474 201.6 207.342 215.303 214.537 218.056 224.939 229.594 232.957 236.736 237.017 240.007 245.120 251.107 255.657 258.811 267.999 Percent Change Dec. Dec. Avg. Avg. 2.5 3.2 4.1 2.8 0.1 3.8 2.7 -0.4 1.5 1.6 3.0 3.2 1.7 2.1 1.5 1.5 0.8 1.6 0.7 0.1 2.1 1.3 2.1 2.1 1.9 2.4 2.3 1.8 1.4 1.2 3.5