Chapter 20: Aggregate Demand and Supply BY THE NUMBERS: DO IT YOURSELF! LAB ACTIVITY

Chapter 20: Aggregate Demand and Supply BY THE NUMBERS: DO IT YOURSELF! LAB ACTIVITY

Name: Instructor: Course: Description: One of the key contributors to aggregate demand is homeownership. Not only do new homes add to investment spending, but homeownership creates wealth and financial security that lead to greater consumption in the economy. This lab activity compares the rate of homeownership across U.S. states. ______________________________________________________________________ Step 1: Acquire the latest available data on homeownership rates from the U.S. Census Bureau (U.S. Department of Commerce): http://www.census.gov/housing/hvs/data/rates.html. Select the option “Homeownership Rates by State”, and open the corresponding Excel spreadsheet. Use the data from the most recent quarter reported. Step 2: Using data from the Excel spreadsheet, input the five states with the highest homeownership rates and the five states with the lowest homeownership rates. Then take the average homeownership rates from all 51 states (including the District of Columbia) to determine the homeownership rate for the United States.

Rank (high to low)

State Homeownership Rate (%)

#1 #2 #3 #4 #5

U.S. average United States #47 #48 #49 #50 #51

Step 3: Using Excel, enter the data in the table into two columns labeled “State” and “Homeownership Rate (%)”, and sort from lowest to highest (Excel requires sorting from lowest to highest to produce a bar graph with the highest entry on top). Then use your mouse to highlight the 24 cells (12 rows including the header row x 2 columns), click the “Insert” tab from the top banner, and under “Charts” select “Insert Bar Chart”. Under

Chapter 20: Aggregate Demand and Supply BY THE NUMBERS: DO IT YOURSELF! LAB ACTIVITY

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chart options, select “data labels” to display homeownership rates. Then select the options for the primary horizontal axis and set the minimum bound at 40 and the maximum bound at 80, and major units at 5. Right click the United States bar and select a different color. Finally, copy and paste this chart into your response sheet.

Lab Questions:

1. What is the average homeownership rate of the top five states? What is the average homeownership rates of the bottom five states?

2. What is the difference in homeownership rate between the state with the highest rate of homeownership and the state with the lowest homeownership rate?

3. Analyzing the states that have high and low homeownership rates, what factors explain why these large differences in homeownership between states exist?

  • Chapter 20: Aggregate Demand and Supply
    • Description
    • Step 1
    • Step 2
    • Step 3
    • Lab Questions
    • Answer Key
    • Answer Key

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