Project Goals
The main goal of this project is to help students to build skills in data analysis by applying the methods learned to measure the Gross Domestic Product (GDP) and identify business cycles, and by drafting a two–page report on this analysis.
Learning objectives
Upon completing this research project, the student will be able to:
–Describe the GDP and its components;
–Collect data on the GDP components and use them as well as the GDP equation to measure
GDP;
–Graph GDP;
–Describe the relationship between the GDP and each of its components.
–Identifying business cycle and its primary phases.
Components of the project
This project includes two components:
–Creation/construction of a graph on the key macroeconomic indicators using FRED data; and
–Drafting of a two–page analysis of the components of the Gross Domestic Product.
–You may also complete a Big Data cognitive course (Big Data 101) before going onto the
project. This would earn you extra credit towards the project.
1.Completion and certification of the cognitive class on Big Data 101 (Due by November 10, 2021)
Your assignment here is to complete successfully the three–hour cognitive course
Big Data 101.
To complete the course,
open the link below and follow the instructions
https://cognitiveclass.ai/courses/what-is-big-data
–At the top right–hand corner of the screen click Sign-Up and create an account. Be sure to use your First and Last name.
–After signing up, log in to the Cognitive Class System.
–After logging in, at the top right side of the screen, search the term “Big Data 101.”
–Click the course labeled “Big Data 101.” (Red Image not the archived class)
–Next click the blue button labeled “Enroll” to enroll in the course.
2. Fred Graph
With the attached excel file, use the data components of GDP to evaluate the equation of GDP, that is:
𝑮𝑫𝑷=𝑪+𝑰+𝑮+(𝑴−𝑿)
Next, show a graphical representation of these variables and check that 𝑮𝑫𝑷=𝑪+𝑰+𝑮+(𝑴−𝑿)
3. Written Report on the GDP
Draft a two-page report on the GDP behavior over the period 2001-01 to 2020/21 (latest date with available data). This report should include a description of the steps taken to construct the graphs, and an analysis of the business cycle over this time period. Make sure you describe the different phases of business cycle present in the GDP data, that is, describe recession period (decrease in GDP of more than 6 month), expansion (increase in GDP), peak (the highest GDP during the expansion), and trough (lowest GDP during the recession).
Use the GDP equation and data on GDP components to evaluate the equation. Is the [𝑪+𝑰+𝑮+(𝑴−𝑿)] for each year really equal to the GDP values for those years provided in the FRED data?
Create different visualizations using each of the variables over the time period with data to show the relationship between GDP and each of its components. Which components seems to determine the behavior of the GDP? How can you identify unemployment or inflation from the GDP graph?
Next, determine the proportion (share) of GDP made up of consumption ©, investment (I), government spending (G), and net exports (M-X, that is Xn). What GDP component has the largest share?
What have you learned about measuring GDP from this assignment? Be sure to cite, using APA, any findings to back your argument and provide a bibliography.
