Focus on Income Inequality

This Page One Economics essay discusses how income and wealth inequality are measured, what drives differences among individuals and households, and how growing inequality may affect the overall economy. The essay includes multiple-choice questions suitable for both in-class and out-of-class assignments.

From the FRED Blog

The post “Measuring income inequality as a ratio” compares the average income of the highest earners to the average income of the lowest earners for each U.S. county over the 2014 to 2019 period.

Quiz Yourself on Income and Wealth Inequality

The FRED map above shows the Gini Index, a measure of income inequality, by nation in 2018.

Q1. In what country was income inequality the highest?

Q2. Name a country with a Gini Index almost identical to that of the United States.

The FRED graph above shows the shares of net worth held by different groups of United States households sorted by their wealth.

Q1. In 2021, which wealth percentiles held the largest share of total net worth in the U.S.?

Q2. In 2021, what share of total net worth did the poorest 50% of U.S. households hold?

You can share these graphs with your students using this dashboard. To customize this dashboard, just click the “Save to My Account” button at the top of the dashboard.

Focus on Economic Output

This assignment provides instructions on building the graph below and includes writing prompts for out-of-class assignments.

From the FRED Blog

The post “Women in the sports industry: Did Title IX make a difference?” compares the employment figures for men and women in sports between 2000 and 2019.

Storytelling with Data and FRED Interactive Modules

Seasonality: Learn how to use FRED® to visualize seasonal patterns in data. The FRED Interactive modules can be embedded in your learning management system.

Quiz Yourself on the Economics of Sports

The graph above shows the total revenue of the three types of business establishments classified as “Arts, Entertainment, and Recreation” by the U.S. Census Bureau.

Q1. Between 1998 and 2019, which type of establishment recorded the largest growth in total revenue?

Q2. In 2020, during the onset of the COVID-19 pandemic, which type of establishment recorded the smallest decline in total revenue?

The graph above shows the monthly retail sales in sporting goods stores (blue line) and their annual value (red line) reported by the U.S. Census Bureau.

Q1. Between 1992 and 2021, during what month of the year are retail sales regularly the highest?

Q2. Between 1992 and 2021, during what month of the year are retail sales frequently the second highest?

You can share these graphs with your students using this dashboard. To customize this dashboard, just click the “Save to My Account” button at the top of the dashboard.

Focus on Recession Probabilities

This assignment provides instructions on building the graph below and includes writing prompts for out-of-class assignments.

From the FRED Blog

The post “Dating a recession: FRED marks the spot” discusses the process followed by the FRED team to mark recessions in FRED graphs.

Storytelling with Data and FRED Interactive Modules

The COVID-19 recession: Learn how to use FRED® to visualize the COVID-19 recession. The FRED Interactive modules can be embedded in your learning management system.

Quiz Yourself on Recessions

Q1. Between 1947 Q2 and 2022 Q2, which was the longest recession?

Q2. Between 1947 Q2 and 2022 Q2, which was the shortest recession?

Q1. Between 1947 Q2 and 2022 Q2, which was the deepest recession?  

Q2. Between 1947 Q2 and 2022 Q2, which was the shallowest recession?

The graph above shows the real-time Sham Rule Recession Indicator. It signals the start of a recession when the three-month moving average of the national unemployment rate (U3) rises by 0.50 percentage points or more relative to its low during the previous 12 months.

Q1. Consider the value of the indicator in July 2022. Does it signal the start of a recession?

You can share these graphs with your students using this dashboard. To customize this dashboard, just click the “Save to My Account” button at the top of the dashboard.

Focus on Nominal and Real Interest Rates

This assignment provides instructions on building the graph below and includes writing prompts for out-of-class assignments.

Storytelling with Data and FRED Interactive Modules

Adjusting for Inflation: Learn how to use FRED® to visualize the difference between nominal and real values. The FRED Interactive modules can be embedded in your learning management system.

Quiz Yourself on Interest Rates

Q1. Between January 1 and July 1, 2022, which average mortgage rates were higher: the 15-year fixed rate average or the 30-year fixed rate average?

Q2. Consider the fact that interest rates reflect the risk for the lender of not getting their money back promptly or in full. Why is the 30-year fixed rate mortgage average higher than the 15-year fixed rate mortgage average?

Q1. Between January 1 and July 1, 2022, which interest rates were higher: overnight unsecured or overnight secured?  

Q2. Consider the fact that, sometimes, assets can be used to secure the repayment of a loan. Why is the overnight unsecured interest rate higher than the secured overnight interest rate?

The graph above shows mortgage interest rates charged to borrowers with low credit rating scores (less than 680) and high credit rating scores (greater than 740).

Q1. Between January 1 and July 1, 2022, which interest rates were higher: those charged to borrowers with high or low credit rating scores?

Q2. Why are borrowers’ credit rating scores related to the mortgage interest rates charged by lenders? A2. Because the borrowers’ credit rating scores are related to the risk for the lender of not getting their money back promptly or in full.

You can share these graphs with your students using this dashboard. To customize this dashboard, just click the “Save to My Account” button at the top of the dashboard.