Past Recessions

Watch the Video on Past Recessions by the Today Show. Please watch the video all the way through before you attempt to answer the following questions.  As you watch the video, pay particular attention to the quantitative information Natalie Morales is reporting.  After you have finished watching the video, answer the following questions in a Word document. Note: You may need to replay and pause the video to gather the details necessary to answer the questions.

Questions:

1. Watch the video again and write a short paragraph describing what information this video is trying to convey to its viewers, and then comment on a fact or two from this video that you found interesting or surprising.

2.  At the beginning of the video, Natalie Morales reported that gas prices in 1973 rose from $0.38 per gallon to $0.55 per gallon.  Calculate the percent change in gas prices.  Show all of your work. 

3.  The report also stated that in 1973 inflation doubled.  Analyze the U.S. Inflation 1970-1975 graph and verify that this report is accurate.  Use the U.S. Inflation 1970-1975 graph below to calculate the percent change in inflation from 1973 to 1974.  Show all of your work. 

4.  In the video,  Natalie Morales reports that six months after its lowest point in the first quarter of 1975 the "economy saw growth in the double digits". Use the U.S. Gross Domestic Product graph to help you figure out what she is referring to.  Note: Gross Domestic product is a measure of the total dollar value of all final goods and services produced in the country in a year.  What is wrong with the U.S. Gross Domestic Product graph below?  Please explain in full sentences. 

5. The video segment reported that the Dow Jones industrial average between 1982 and August of 1987 more than tripled to a high of 2722.42.  Is this true?  Use the graph below to calculate the percent growth during this time period. 

6. It was October 11, 1987: Black Monday.  The markets crashed and the Dow  Jones lost 23 percent of its value in one day.  Use the graph below to verify that this calculation was accurate. Show all of your work. 

7.  Natalie reports that just 3 years later the Dow Jones recovered all of its value it had lost on October 11th.  At that time, the Dow Jones lost 23 percent of its value. By what percent must the Dow Jones increase in order to regain the value it had lost on Black Monday? 

8.  Natalie reports that Pets.com shares sold at almost $11 per share in 2000 and then fell to almost 19 cents a share later that year.  Calculate the percent change in value of the share. 

9.   Critique each the following graphs, finding at least one serious misrepresentation. What misleading impression does it give?

a.

b.

c.

d.

e.