Sample Economics Essay On Introduction to FRED

Homework Question on Introduction to FRED

In the following assignment you will be introduced to using FRED and learn the following features:

1. Creating a graph
3. Changing the Frequency and Units of Data

Project 1

1. To begin, we’ll watch a short video that introduces FRED: https://youtu.be/kYd51YutYqo
1. Begin by creating a FRED Graph of the “Consumer Price Index for All Urban Consumers: All Items”.
1. Review the Instructions on how to Add a Series
2. On your FRED Graph from Question 1, add a series of the “Federal Minimum Hourly Wage for Nonfarm Workers for the United States”
1. Notice that the scale of the graph makes it difficult to interpret
3. Select the Minimum Hourly Wage Data Series and change the Y-Axis Position to “Right”
1. Changing the Frequency of Data
1. Review the Instructions on how to change the Frequency of Data
2. https://fredqa.stlouisfed.org/2014/03/27/fred-graph-how-to-changing-frequency-of-data/
3. Change the CPI Data Series to an annual frequency
4. QUESTION: Insert your graph into the space below on this document:

Project 2

1. Begin by creating a FRED Graph of Federal Debt: Total Public Debt.

QUESTION:

1. What is the current level of Federal Debt
2. Adjust the date range to view that last 10-years by clicking on the 10yr link
3. Change the Frequency to Annual
4. Change the Units to: “Percent Change from a year ago”
5. QUESTION:Interpret the final graph. Has the rate of Federal Debt been increasing or decreasing? If so, what has happened to the rate of increase or decrease?

Project 3

1. Create your own graph to share.
1. Include at least 2 data series
2. Export your graph as a JPG file
1. QUESTION: Insert your graph into the space below on this document:

Homework Answer on Introduction to FRED

The Federal Reserve Educational Database (FRED) aggregates many economic datasets into one convenient location. According to FRED, “this site offers a wealth of economic data and information to promote economic education and enhance economic research. The widely used database FRED is updated regularly and allows 24/7 access to regional and national financial and economic data.”

Project 1

QUESTION: What is the current level of Federal Debt?

The current level of Federal debt is at 8(+more)

QUESTION: Interpret the final graph. Has the rate of Federal Debt been increasing or decreasing? If so, what has happened to the rate of increase or decrease?

According to the graph the rate of public has been on the rise since 1966 to the current date. The Rate seems to accelerate in the period between 1981 and 1990. However the greatest overshoot in the public debt is the year 2007 during the great economic recession. The rate of debt might have increased due to lack of proper tax collection methods. Secondly, it could be as a result of spending more while getting very low revenues.