Macroeconomics Internet Assignment

The period under analysis is from 1980 to 2006. We will be comparing the macroeconomic records
of the different presidential administrations during this period (Reagan: 1981-1988; Bush I: 1989-
1992; Clinton: 1993-2000; Bush II: 2001-date). The questions primarily ask for the averages in several
key indicators. 

(x2) 1. Average real GDP growth rate

(x2) 2. Average real per capita GDP growth rate

(x2) 3. Average inflation

(x2) 4. Average unemployment

(x2) 5. Average wage-price ratio

6. Average long term growth

7. Average short term growth

8. Average K/L ratio

9. Average federal government spending (% of GDP)

10. Average federal budget deficit (% of GDP)

11. Average SS savings (% of SS receipts)

12. Average trade deficit (% of GDP)

13. Average annual increase in the price of unleaded regular gasoline (as %)

14. Average annual non-farm job creation

15. Rank the presidents on their macroeconomic performance.

To rank the presidents, give 3 points for 1st, 2 points for 2nd, and 1 point for 4th, (last place gets no
points). Add these scores together for all 14 indicators to see the best economic president. (x2)
means double the scores for this indicator. This is because these are the most significant indicators.

The last five questions ask for industry specific data and are to be taken from data throughout the
period 1981-date
16. Industrial Trends:

a. Which three industries grew the most (as a %) from 1980-2000?

b. Which three industries grew the most (as a %) from 2001-2005?
c. Which three industries grew the least (as a %) from1980-2000?
d. Which three industries grew the least (as a %) from 2001-2005?

17. Value Added Trends:

a. Which three industries increased value added the most from 1980- 2005?
b. Which three industries increased value added the least from 1980- 2005?

18. Trade Trends:

a. Which three industries have the best balance of trade from 1980 to 2005?
b. Which three industries have the worst balance of trade from 1980 to 2005?

19. Excluding Chief Executives, which five occupations have the highest mean salaries in 2005?

20. Which industry is the most dangerous?

Peru's economy reflects its varied geography - an arid coastal region, the Andes
further inland, and tropical lands bordering Colombia and Brazil. Abundant mineral
resources are found in the mountainous areas, and Peru's coastal waters provide
excellent fishing grounds. The Peruvian economy grew by more than 4% per year
during the period 2002-06, with a stable exchange rate and low inflation. Growth
jumped to 9% per year in 2007 and 2008, driven by higher world prices for
minerals and metals and the government's aggressive trade liberalization
strategies, but then fell to less than 1% in 2009 in the face of the world recession
and lower commodity export prices. Peru's rapid expansion has helped to reduce
the national poverty rate by about 15% since 2002, though underemployment
remain high; inflation has trended downward in 2009, to below the Central Bank's
1-3% target. Despite Peru's strong macroeconomic performance, overdependence
on minerals and metals subjects the economy to fluctuations in world prices, and
poor infrastructure precludes the spread of growth to Peru's non-coastal areas.
Not all Peruvians therefore have shared in the benefits of growth. President
GARCIA's pursuit of sound trade and macroeconomic policies has cost him
political support since his election. Nevertheless, he remains committed to Peru's
free-trade path. Since 2006, Peru has signed trade deals with the United States,
Canada, Singapore, and China, concluded negotiations with the European Union,
and begun trade talks with Korea, Japan, and others. The US-Peru Trade
Promotion Agreement (PTPA) entered into force 1 February 2009, opening the way
to greater trade and investment between the two economies.