These Economics W.I.R.E.D. activities recommend web links that relate to key concepts of each chapter of the textbook. For each link, there are instructions to guide you to specific information, followed by several discussion questions or exercises.

Key Concepts: The Spending Shares, The Effect of Interest Rates on Spending Shares, Determining the Equilibrium Interest Rate, Case Study: Shifts in Government Purchases and Consumption, The National Saving Rate,

U.S. Department of Commerce—Personal Savings Rate

Scroll down the web page to review the "PSAVERT" (Seasonally Adjusted Personal Savings Rate) information since 1959.

• Estimate the average U.S. personal savings rate during the period 1959–1991. Compare this to the average rate of the past ten years. Explain its potential affect on the aggregate expenditure.
• Identify potential determinants of consumption that may be responsible for the current trend in the U.S. personal savings rate.
• Review the U.S. real disposable income information at the Bureau of Economic Analysis. Identify the potential factor(s) that may explain the surge in real disposable income from 1999–2001.

OECD National Accounts

Select the "On-line statistics" link in the left column. Scroll down the list of available statistics provided by Organization for Economic Cooperation and Development. Survey the "Public Sector" link information (enlarge PDF image to 125%–150%).

• Which economies maintain a relatively high level of government purchase share?  
• Determine if the economies with a high level of government purchase share also maintain high public spending priorities in areas such as education and health.