DATA EXERCISE #1
Due at the end of week 3
This project is closely related to the course objectives and learning resources provided for the course. This project is based on the course learning resources studied during Week 1:
· Chapter 6 of the textbook “The Macroeconomic Perspective”,
· Chapter 2 from the book “Concepts and Methods of the U.S. National Income and Product Accounts”,
· “Measuring the Economy: A Primer on GDP and the National Income and Product Accounts”.
Purpose of the Data Exercises
The data exercises are designed to ensure that students are familiar with the methodology of collecting and analyzing data from the web. Each exercise includes collecting the required data, creating a graph or table to present this information, and writing three to four double-spaced data analysis pages. Students should aim to provide clear insights and interpretations rather than merely presenting data.
Data Exercise Requirements
1. Textbook and Learning Resources as a Reference: Students must use the assigned textbook, as well as chapters from “Concepts and Methods of the U.S. National Income and Product Accounts”, and “Measuring the Economy: A Primer on GDP and the National Income and Product Accounts”, provided in Content > Unit 1 > Learning Resources as a primary reference for their analysis. This ensures a strong theoretical foundation and context for the data being analyzed.
2. Current Data and References: All data used must be the most recent available data. Students must include references from recent news articles, journals, or other credible sources to support their analysis. This requirement aligns with the expectation to use up-to-date Bureau of Labor Statistics (BLS) or Bureau of Economic Analysis (BEA) data.
3. Focus on Analysis –While charts and graphs are necessary to present data visually, the focus should be on explaining the significance of the data.
4. Elimination of First-Person Language: Students must avoid using the first person in their papers. Instead, reflections and analyses should be restated in the third person. This enhances objectivity and professionalism in academic writing.
Format of the Project:
The Data Exercise must be posted to the LEO Student Assignments as a Attachments are limited to a maximum two files in doc, docx., xls. xlsx., or rtf. formats. OTHER FORMATS ARE NOT ACCEPTABLE, will not be reviewed or graded.
Please note that hand-written and scanned works, pdf. files, jpg. files, as well as files posted in google drive, will not be accepted or graded.
No more than 20% of the text of the project should be made up of quotes.
The UMGC is seeking professional/business style communications with appropriate citations/references. The students’ grades will not be reduced because of a lack of strict adherence to a particular style. We suggest students utilize one of the styles as a guide to their work. As a preferred guide, APA -7th edition is most used in social sciences such as economics, business and finance. Please use Content > Course Overview > Course Resources > page 4 > Writing Resources as a guide how to use APA -7th edition in your work.
Written projects:
- Must be typed, double-spaced, in 12-point Times New Roman or Arial font, with one-inch margins
- Must have professional/business style of the title page
- Must have appropriate in-text citations and professional/business style of the reference list
- Must be prepared using word processing software (Microsoft Word preferred).
- If you are using Excel to calculate or create charts, please also submit the Excel file to support your calculations.
Data exercise #1 Assignment
Consists of two parts.
Part 1: Expenditures Approach to Calculating GDP (weight 45% of the assignment grade)
Please read!
GDP for each quarter is not ¼ of the annual GDP. GDP for each quarter is an annual estimate based on the results of each quarter.
“BEA estimates the nation’s GDP for each year and each quarter. But new GDP statistics are released every month. Why? Because for each quarter, BEA estimates GDP three times. The advance estimate, coming about a month after the quarter’s end, is an early look based on the best information available at that time. The second estimate and third estimate each incorporate additional source data that weren’t available the month before, improving accuracy.” (www.bea.gov).
“BEA publishes estimates of levels at annual rates (for most series) for ease of comparisons with related and historical data. For example, in its February 2, 2004 personal income and outlays release, BEA estimated that personal income for December 2003 was $9,335.8 billion at an annual rate. This is easily compared to BEA’s estimates of personal income for the fourth quarter of 2003 ($9,312.6 billion, at an annual rate) and for the entire year of 2003 ($9,187.4 billion). “(www.bea.gov).
Published
January 13, 2006
Complete the following exercise
Visit the Bureau of Economic Analysis website at www.bea.gov. From the drop-down menu under “Data”, click on “by Economics Account”.
Then click on “National”> “Gross Domestic Product > and “Full Release and Tables”. (To find “Full Release and Tables” you need to scroll down the page to the section “Current Release”.
Use table 3 (Gross Domestic Product: Level and Change from Preceding Period). Tables are located at the end of the Release, so you need to scroll all the way down to the tables.
The left columns are nominal GDP (and its components) and the right half represents real GDP (chained 2017 dollars).
1. Collect and Present the required data (20% of the project grade)
a) Create the table that contains the most recent available data from Bureau of Economic Analysis (BEA) website. Please note that using the data for previous years and/or previous estimates will produce grade zero for this part of the project.
You need this information from both parts of table 3- (nominal GDP (and its components) from left columns and real GDP (chained 2017 dollars) from the right part of the table 3). Omit the intermediate lines found in Table 3 on the web site.
· Gross domestic product
· Personal consumption expenditures
· Gross private domestic investment
· Net exports of goods and services
· Government consumption expenditures and gross investment
b) Calculate the percentage (the proportion) of each category in nominal GDP and in real GDP.
Using Nominal GDP:
[Personal consumption expenditures / Nominal GDP]*100%
[Gross private domestic investment / Nominal GDP]*100%
[Net exports of goods and services / Nominal GDP]*100%
[Government consumption expenditures and gross investment/ Nominal GDP]*100%
And using Real GDP:
[Personal consumption expenditures / Real GDP]*100%
[Gross private domestic investment / Real]*100%
[Net exports of goods and services / Real GDP]*100%
[Government consumption expenditures and gross investment/ Real GDP]*100%
Present the data and the results of your calculations that you received in parts (a) and (b) as a table(s) in your project.
2. Write a report (2 pages or more double – spaced), which contains an analysis of the results you received (25% of the project grade)
In this report consider, but do not be limited to the following:
- Why was the nominal GDP greater than the real GDP? By how much?
- GDP is composed of several categories. What category makes up the largest portion of GDP? What category makes up the smallest portion of GDP?
- What is “Gross private domestic investment”? What does gross private domestic investment measure?
- Please analyze the significance of the data and results of calculations that you received for this Data exercise on the nominal and real GDP, its categories. Please include references from recent news articles, journals, or other credible sources to support your analysis.
- What is “Net exports of goods and services”? Why it is negative?
- In the left part of table 3 (nominal GDP) find the category “National defense”. How much was the National defense for the most recent available quarter? Calculate percentage of National defense out of “Government consumption expenditures and gross investment”. Calculate percentage of National defense out of GDP.
- Please analyze the significance of the data and results of calculations that you received for this Data exercise on the net exports of goods and services and national defense. Please include references from recent news articles, journals, or other credible sources to support your analysis.
- Reflection– the students should write a paragraph in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace and/or in everyday life.
Part 2: Income Approach to Calculating GDP (weight 45% of the assignment grade)
Complete the following exercise:
Go to http://www.bea.gov/
Visit the Bureau of Economic Analysis website at www.bea.gov. From the drop-down menu under “Data”, click on “by Economics Account”. Then click on “National”, “Gross Domestic Product, and “Full Release and Tables”. Use table 7 (Relation of Gross Domestic Product, Gross National Product, and National Income) and table 8 (Personal Income and its Disposition).
1. Collect and present the required data (20% of the project grade)
Create the table that contains the most recent available data from Bureau of Economic Analysis (BEA) website. Please note that using the data for previous years and/or previous estimates will produce grade zero for this part of the project. Omit the intermediate lines found in Tables 7 and 8 on the web site.
· Gross domestic product
· Gross national product
· Net national product (you should calculate it as Gross national product minus Consumption of fixed capital)
· National income
· Personal income
· Personal Disposable Income
· Personal Savings
Present this table in your project.
2. Write a report in your own words (2 pages or more double-spaced), which contains the analysis of the results you received. (25% of the project grade).
In this report consider, but do not be limited to the following:
1. What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP?
- Based on the table, what calculations must you make to determine GNP from GDP?
- Please analyze the significance of the data that you received for this Data exercise on GNP. Please include references from recent news articles, journals, or other credible sources to support your analysis.
- What is national income (NI)? What does NI measure?
- Which was higher this year, GNP or NI? By how much?
- What calculations must you make to determine NI from GNP?
- NI is composed of several categories. What category makes up the largest portion of NI?
- Please analyze the significance of the data that you received for this Data exercise on National Income and its categories. Please include references from recent news articles, journals, or other credible sources to support your analysis.
- What calculations must you make to determine Personal Income from National Income?
- What calculations must you make to determine Personal Disposable Income and Personal Savings?
- Please analyze the significance of the data that you received for this Data exercise on Personal Income, Personal Disposable Income, and Personal Savings? Please include references from recent news articles, journals, or other credible sources to support your analysis.
- Reflection– the students should write a paragraph in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace and/or in everyday life.
PRESENTATION OF THE DATA EXERCISE (10%) of the project grade):
- Organization, format, and presentation of paper including professional/business style of the title page, introduction, body, and summary. Begin each section with a subheading; use the subheadings described in the assignment (3% of the project grade).
· Use of tables, figures, and other graphics to summarize and support analysis presented in the paper. All tables and charts should have the numbering system: “Table 1”, a substantive title, and a reference to the source of the information. (3% of the project grade).
· Use of the assigned textbook and learning resources provided in the course as a primary reference for the analysis, recent news articles, journals, or other credible sources, appropriate in-text citations and professional/business style of the reference list. (4% of the project grade).