1. Use FRED to build graphs showing: • REAL GDP • NOMINAL GDP • The GDP Deflator • The CPI o Unemployment. For each discuss what happens in times of Economic downturns called recession (the gray bands). · Is this pattern consistent and why do you think the patterns exist?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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1. Use FRED to build graphs showing:
O REAL GDP
• NOMINAL GDP
• The GDP Deflator
• The CPI
• Unemployment. For each discuss what happens in times of Economic downturns called recession (the gray
bands).
· Is this pattern consistent and why do you think the patterns exist?
2. In year between year one and year two the number of unemployed falls from 100,000 to 80,000. In year one the
Labor force is 1,000,000. What is the unemployment rate in year 1. Carefully explain how it is possible for the number
of unemployed to fall if the unemployment in year 2 is 10.6%. Does this mean the economy is improving? What must
the labor force be in year 2?
Transcribed Image Text:1. Use FRED to build graphs showing: O REAL GDP • NOMINAL GDP • The GDP Deflator • The CPI • Unemployment. For each discuss what happens in times of Economic downturns called recession (the gray bands). · Is this pattern consistent and why do you think the patterns exist? 2. In year between year one and year two the number of unemployed falls from 100,000 to 80,000. In year one the Labor force is 1,000,000. What is the unemployment rate in year 1. Carefully explain how it is possible for the number of unemployed to fall if the unemployment in year 2 is 10.6%. Does this mean the economy is improving? What must the labor force be in year 2?
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