acceptable) 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 growth rates for the y
column next to couimn next to each of the values of the three variables (a template of the table
ate the changes in inflation rates, unemployment rates and the RGDP ears from Year 2007
through 2014 and show them in a new is given below) Year Real Unemploy Change in CP | ment
Rate | U rate in Inflation RGDP GDP | Indices | rate in % growth rate in% 2006 14,613.8 2007
14,873.77 2008 14,830.4? 2009 14,418.7 ? 2010 14,783.8 2011 15,020.6 2012 15,369.2 2013
15,710.3? 2014 16,089.8 ? 4.6% 4.6% 5.8% 9.3% | 9.6% 8.9% 8.1% | 7.4% 201.6 207.3 ? 215.3
? 214.53 218.05 224.93 ? 229.59 ? 232.96 ? 236.74 ? |? 6.2 te: www.bls.gov; For RGDP data:
www.bea.gov 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 th three macroeconomic variables for 2015-16 6
pts Hint: While predicting the trend for 2015-16 (based on the growth rates and trend you
estimated in the table above), it is imperative to observe the most recent data on these three
variables.
Solution
RGDD URATE Inflaton change
2007 2.6 0 3
2008 -0.43 1.2 4
2009 -4.12 3.5 -0.5
2010 3.65 0.3 2
2011 2.37 -0.7 3
2012 -0.8 -0.8 2.5
2013 -0.7 -0.7 1.5
2014 -1.2 -1.2 2