Understanding Macroeconomic Data
Explore: Explore how graphs of economic data reveal patterns in real-world U.S. macroeconomic data and relationships between data.

Economists make extensive use of data to describe and to analyze the health of an economy. Some of the most important variables economists track include output (and output per person), labor productivity, the unemployment rate, the inflation rate, and the trade balance (exports and imports).

This interactive graph provides a visual picture of the historical behavior of the U.S. national economy. By using graphs of economic data we can see patterns in real-world U.S. macroeconomic data and relationships between data. To begin, click on the check-boxes or variable name of the data that you want to graph (up to two variables at a time), enter the starting and ending dates, and click on the Plot Data button to plot the data series. The color of the line n the graph matches the color of the variable name. Click on the Show Recessions button to show periods of recession (shaded). Click the Reset button to clear the graph and start over.

1. Graph Output (Real GDP) and Output per person from 1900 to 2004. What features do you notice about each of these two variables? What is the trend of U.S. output over time.
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2. Reset the graph. Graph Labor Productivity (Output per worker) from 1900 to 2004. Describe the behavior of labor productivity over time. Over what periods of time does it appear labor productivity rose the fastest and the slowest?
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3. Reset the graph. Graph the Unemployment Rate from 1900 to 2004. Describe the behavior of the unemployment rate over time. How does the behavior of the unemployment rate differ from the behavior of output or productivity? When was the unemployment rate the highest? The lowest? What has been happening to the unemployment rate in recent years?
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4. Reset the graph. Graph the Inflation Rate from 1900 to 2004. Describe the behavior of the inflation rate over time. When was the inflation rate the highest? The lowest? What does it mean to have a "negative" inflation rate? What has been happening to the inflation rate in recent years?
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5. Reset the graph. Graph Exports and Imports from 1900 to 2004. What has been happening to the share of imports and exports in the U.S. economy since the 1950s? What does this suggest about the level of integration and interdependence of the U.S. economy in the world economy?
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6. Reset the graph. Graph the Trade Balance (Exports - Imports) over the period 1900-2004. Describe the behavior of the U.S. trade balance during this time.
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7. Reset the graph. Graph Output (Real GDP) and the Unemployment Rate together from 1928 to 1940. What do you notice about the relationship between the unemployment rate and the level of output during this period? Reset the graph. Next, graph these two variables over the period 1971-1979. Do you observe the same relationship during this period? Why do you suppose the two are related?
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8. Reset the graph. Graph the Unemployment Rate and the Inflation Rate together from 1964 to 1968. What do you notice about the relationship between the unemployment rate and the inflation rate during this period? Reset the graph. Next, graph these two variables from 1973 to 1977. Do you observe the same relationship over this period? Based on your analysis, can you make any generalizations about the relationship between these two economic variables? What was the relationship between the unemployment rate and the inflation rate in the 1990s?
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9. Reset the graph. Graph Labor Productivity and Output (Real GDP) together from 1900 to 2004. What accounts for the differences in the appearance of these two variables?
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