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NOVA SOUTHEASTERN UNIVERSITYH. Wayne Huizenga Schoolof Business and EntrepreneurshipMBA ProgramECN 5050 – Economic ThinkingData Exercise 1This exercise is designed to assess your ability to manipulate and analyze data inaccordance with Course Competency (CC) #5: Locate, analyze, and interpretmacroeconomic data.Instructions:â¢ Put all of your work in one file;â¢ Write your name in the header;â¢ We need to see your work in Excel (i.e., formulas). Do not copy and paste numbers fromyour original worksheet to a new worksheet. When submitting, make sure that the cellsin your worksheet show formulas.â¢ After you finish the assignment, name your file LastnameDE1.xls (or .xlsx, depending onthe version of Excel). Note that you do not have to write the .xls suffix by yourself âExcel will do it automatically, andâ¢ Upload it to the Data Exercise Section of the Blackboard.Background:One of the most regular relationships in macroeconomic data is the relationship between theunemployment rate and the growth rate of real GDP. Specifically, the relationship is betweenthe percentage-point change in the unemployment rate from one year to the next and the growthrate of real GDP:Percentage Change in Real GDPPercentage?point Change in Unemployment RateAssignment:You are hired as a business consultant to a Senator. She heard the association between theunemployment rate and economic growth, and asks you to estimate the relationship so that shecould propose a policy to lower the unemployment rate.a. Find the appropriate tables from the most recent Economic Report of the President(http://www.gpoaccess.gov/eop/) and graph the relationship of the two variables.â¢To obtain data for this exercise, click âList of Statistical Tablesâ under the most recentReport, and download relevant tables.â¢You need two tables (real gross domestic product and civilian unemployment rate) forthis exercise. After downloading the two Excel files, combine them into one file. Tocombine two files into one, use âHome-Format (Cells)-Move or Copy Sheetâ and moveone sheet to the other âbook.â1â¢You would need only two series (Gross Domestic Product and Unemployment Rate ofAll Civilian Workers). You may want to delete all unnecessary columns and sheets tosimplify your worksheet.â¢You only need annual data. At the bottom of each table, most recent data are givenquarterly (GDP) and monthly (unemployment rate). You may want to delete unnecessaryrows to simplify your worksheet.â¢In your graph, put the percentage-point change in unemployment rate on the horizontalaxis and the GDP growth rate on the vertical axis.â¢Use âScatter Plotâ to plot the two series on a graph, taking the change in theunemployment rate on the horizontal (X) axis and the growth rate in real GDP on thevertical (Y) axis.â¢Insert the linear trend line. To insert the trend line, put your cursor on one marker onyour scatter plot, right-click the mouse, and choose âAdd Trend Lineâ from the menu.When âTrend Line Optionâ menu appears, choose âDisplay Equation on Chart.ââ¢Note that Excel gives you the relationship in the y =format.b. Given the relationship you estimated, how much should real GDP grow to reduce theunemployment rate by 2 percentage points?For your reference, an example of the graph is provided below (parameter values in theequation are hidden). If done correctly, your graph should look like the one below.Relationship between Unemployment Rate and GDP Growth Rate8Percentage change in real GDPâ¢6420?2y = ?1.8359x + 3.286?4?3.0?2.0?1.00.01.02.0Change in unemployment rate23.04.0