Macro economics analysis hw

10ECN 340Extra Credit (10 points)
Due Date: April 14th 2024 uploaded on Canvas.
Find data on Real GDP and Unemployment. The data should be for 30 years or more. Any 30
or more years of data is acceptable. Use Okun’s law and run a simple regression (can be done
in Microsoft Excel) and find the linear equation that best fits the data. Are the results close to or
same number that Okun derives? Present the data and the equation. Write a paragraph (5-7
sentences) explaining the results (equation arrived at). (Similar to Figure 10-4 of Chapter 10
along with equation on the page, in textbook)
Okun’s law: 𝛥𝑌/𝑌 = 𝑎 + 𝑏𝛥𝑢
Where ΔY/Y is the Percentage Change in GDP, a is a constant, b is a constant and Δu is the
change in Unemployment Rate.
Data for GDP can be found on www.bea.gov. Data for Unemployment Rate can be found in
www.bls.gov. you can also use FRED: https://fred.stlouisfed.org/
If you do not know how to perform a linear regression in Excel, Google linear regression in excel
and find a website that you are comfortable using for the excel version you have.
Please attach your data to the extra credit and give any references that you
may have used.
DO NOT USE DATA OR RESULTS FROM OTHER STUDENTS. THIS IS
EQUIVALENT TO CHEATING AND WILL BE REPORTED.
Data: 2 points
Equation with results: 2 points
Show regression results: 3 points
Explanation of results: 3 points