CHAPTER Eighteen
Economic Policy

Exercises

Assess the current state of the economy

    1. Go to the web site www.economicindicators.gov.
    2. Click on "Gross Domestic Product," "New Residential Construction," and "Personal Income and Outlays."
    3. Answer the following questions for each indicator:
      • What are the current numbers?
      • How do they compare to previous data for each indicator?
      • Based on the current data, how strong do you think the economy is?
    Note : You may want to read the "Consider the Source: Understanding Economic Indicators" feature in this chapter to help you interpret the statistics.

Compare the U.S. economy to other countries' economies

    1. Go to the CIA's World Factbook.
    2. Click on "Select a Country or Choose a Location" and pick the United States .
    3. Click on "Economy" on the upper right-hand side of the page.
    4. Answer the following questions:
      • What is the GDP?
      • What percentage of the population lives below the poverty line?
      • What is the inflation rate?
      • In what occupations are most of the labor force employed?
      • What is the unemployment rate?
    5. Go back and choose three other countries in which you are interested and answer the same questions.
      • What similarities do you see between these countries and the United States ? What differences?
      • What might explain these similarities or differences?
    The states and the federal budget
    1. Go to the White House's News and Policies site to find a map with links to budget plans for each state.
    2. Click on your home state.
      • According to the president, how will his budget priorities benefit the state?
      • Is there any evidence of pork projects?
    3. Click on another state (the state in which your college is located, the state in which your grandmother lives, the state in which you used to live, etc.).
      • What benefits does the president believe that state will receive from his budget?
      • Do you see any differences between how the two states you have analyzed will benefit? If so, what might explain those differences?