ECON 202: FRED Graphing
Assignment #3
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● Section 006: Samantha Borkhoche, Ian Maupin, Thomas
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● Section 007: Zejun Jiang, Robin Smith, Michael Duncan
Module 3: Long-run Growth
In this assignment, students will use the FRED Economic Data software provided by the Federal Reserve
Bank of St. Louis (https://fred.stlouisfed.org/) to deepen their understanding of long-run growth of the
macroeconomy covered in Module 3 of Principles of Macroeconomics (ECON 202). This assignment
focuses on the following chapters in Principles of Macroeconomics by N. Gregory Mankiw (9e, Cengage
2021):
Long-run growth in GDP per capita (standard of living) and productivity (Ch 12)
Long-run growth in money and its consequences for inflation (Ch 17)
Importance of free trade: net exports, net capital outflows, and exchange rates (Ch 18)
The assignment teaches students how to construct the macroeconomic variables presented in Module 3
using U.S. time-series data and portray them in graphical format. Students will then be able to observe
the magnitudes and patterns of key macroeconomics variables over long periods and describe their
behavior as a first step toward discovering how long-run growth occurs.
Submitting this assignment
To complete the assignment, students should follow these steps:
Download this document from eCampus and save it to your computer.
Construct the graphs described below in FRED and download them to your computer. Choose
the “Image (graph)” option, which will be a file in PNG format.
Insert the graphs into this document in the appropriate section and answer the questions posed
below (short answers).
Save the entire completed document in Word or PDF format and upload it to the eCampus
assignment by the due date at the top of the page.
Key learning objectives:
In this assignment, students will learn to:
1. Use the FRED database to create time-series graphs of macroeconomic data.
2. Characterize and describe the following processes:
a. How productivity and other factors contribute to long-run growth in GDP per capita
b. How growth in the money supply leads to growth in the average price (inflation)
c. How foreign trade occurs and contributes long-run growth and inflation
3. Compare and contrast key variables in long-run growth and characterize their relative
magnitudes, variability, and cross-correlations.
4. Quantify and summarize variables related to the determinants of long-run growth, inflation, and
foreign trade.
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