Full text of Classroom Lesson: Keeping It Real: Teach ACRL Information Literacy Frames With FRED Data

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Keeping It Real: Teach ACRL Information Literacy Frames with FRED Data
_______________________________________________________________
Authors
Charissa Jefferson, Business and Data Librarian, California State University-Northridge
Diego Mendez-Carbajo, Professor of Economics, Illinois Wesleyan University
Katrina Stierholz, Director of Library and Research Information Services, Federal Reserve Bank of St. Louis

_______________________________________________________________
Description
This lesson plan is designed to supplement the “FRED Interactive: Information Literacy” online course available
through www.econlowdown.org and includes the following:
Part A: Reviewing “FRED Interactive: Information Literacy” Online Course Content: Students review a FRED
graph made in the course; define the concepts nominal, real, and inflation; and discuss basic strategies for
establishing the reliability of a data source.
Part B: ACRL Information Literacy Frames as FRED-Integrated Abilities: The frames Research as Inquiry,
Information Creation as a Process, Scholarship as Conversation, and Authority Is Constructed and Contextual are
highlighted. With Option A, students work in FRED and use the formula real = (nominal/CPI)*100 to plot inflationadjusted minimum wage rates for two states and compare the results. With Option B, students work in FRED to
plot and compare nominal and real earnings differentials for men and woman.
Part C: Assessment: A variety of in-class and out-of-class activities offer the teacher choices to assess student
skills.
Part D: Resources: Links to resources and a glossary of terms provide additional learning opportunities.

_______________________________________________________________

©2018, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the
user credits the Federal Reserve Bank of St. Louis, www.stlouisfed.org/education.

Student Learning Goals

ACRL Information Literacy Frames &
Knowledge Practices*

Create
❏ New FRED® graphs

Research as Inquiry
❏ Formulate questions for research
❏ Deal with complex research

Define
❏ Minimum wage
❏ Nominal and real wages
❏ Consumer price inflation (CPI)
Identify
❏ Metadata in a FRED graph
❏ Additional questions for further research
Describe
❏ The frequency of data collection
❏ The components of a data citation
❏ The difference between data sources and
aggregators
❏ The reasons for knowing how data are collected
❏ The difference between nominal and real wages
❏ The issues of authority regarding trustworthiness,
reliability, and credibility of data sources

Information Creation as a Process
❏ Articulate the capabilities and constraints of
information
❏ Monitor the value that is placed upon
different types of information products
Scholarship as Conversation
❏ Cite the contributing work of others
❏ Contribute to scholarly conversation at an
appropriate level
Authority Is Constructed and Contextual
❏ Use research tools and indicators of
authority to determine the credibility of
sources
❏ Understand that many disciplines have
acknowledged authorities

*See Appendix B for a comprehensive list.

Procedure

[Estimated class time in brackets]

Part A: Reviewing “FRED Interactive: Information Literacy” Online Course Content
1. Display the graph the students built and read as part of the FRED Interactive course. The graph is accessible
here: https://fred.stlouisfed.org/graph/?g=eO7T (and should be set up before class).
Optional activity: Review unique features of FRED graphs. For example, the shaded bars indicate U.S.
recessions, also known as economic downturns. The National Bureau of Economic Research (NBER) “calls”
recessions and dates them. FRED graphs display recession bars so that users can notice the impact of
business cycles on economic data patterns.
[2 minutes]
2. Ask questions to help students recall the work they did to create the graph. Examples: What was the first
step you took? What does it mean for data to be “nominal”? What does it mean for data to be “real”?
What was the formula you used to calculate the real wage?
[5 minutes]
Because the concept of adjusting a nominal figure for inflation is central to this lesson plan, it is important
to spend enough time reviewing this topic before moving forward. Write the terms “nominal,” “real,” and
“inflation” on the board and ask students to provide definitions. The following definitions are from the
econlowdown.org glossary:
a. Nominal—Monetary values, wages, or prices, measured in current prices.
b. Real—Monetary values, wages, or prices, adjusted for inflation and measured in constant prices—that
is, in prices of a given or base period. Real monetary values are obtained by adjusting nominal wages or
prices with a price measure such as the consumer price index (CPI).
c. Inflation—A general, sustained upward movement of prices for goods and services in an economy.
3. Identify strategies for deciding when/if to use particular data sets. Start by directing students’ attention to
the data sources. Discuss the following questions: Why does it matter to know who the source of the data
is? Can you name some sources that would be more/less authoritative? What else would you want to know
besides the source to evaluate the data?
[5 minutes]
Review the following basic strategies for establishing the reliability of a source:
a. Determine if the source/aggregator has a trustworthy reputation. For example, FRED is trustworthy
because the Federal Reserve Bank of St. Louis is a well-established organization with no partisan or
biased agenda.
b. Be able to assert the independence of the data generator. For example, in late 2009 the Hellenic
Statistical Authority could not report macroeconomic statistics without fear or favor. (See this
euobserver.com article on the topic.)
c. Compare and contrast recurring anecdotal evidence against the data. For example, developing
countries with fixed exchange rates and high inflation rates release “official exchange rates” not truly
reflecting the actual exchange value of their currencies. (See, for example, this Financial Times article.)

Optional activity: Arrange students into several groups, have them establish data reliability criteria
independently, and then ask them to present their ideas to the class. Emphasize the common themes
among their criteria and fill in the gaps in their arguments.
[5 minutes]
Optional activity: List a variety of sources of information on a single topic and have students work in small
groups to evaluate and contrast the way each is constructed and what the goals of the tool are. (See the
CPI example in Appendix A.) Ask each group the following: How are these data created and what is their
purpose?
[5 minutes]
Optional activity: Highlight the fact that data are produced with varying frequency—some are daily, some
hourly, some monthly, some annual. Ask the students the following: Why do you think different types of
data are available with varying frequencies? (Answers will vary, but students’ attention should be directed
to the cost, ease of collection, and importance of collecting information/data with higher [or lower]
frequencies.)
[2 minutes]
4. Finally, review the concept of a citation and discuss when to use it. Emphasize how replicating someone
else’s work is much easier when the data sources are properly cited. Use the elements of the suggested
citation structure in FRED as an example: Data Source; Series Name; Series ID; Retrieval Site; URL Address;
Date Accessed.
[5 minutes]
Optional activity: Discuss the format of data-series IDs and the value of systematic naming for finding
similar (or related series). Ask the students the following: What does a series ID mean? (Answers below.)
[2 minutes]
a. In some cases, the series ID provides abbreviated descriptions of the data. For example, CAWRET = CA
(California) + W (Wages and Salaries) + RET (Retail Trade).
b. In some cases, the series ID reflects database structures and codes. For example,
SMU06000004200000001 = survey abbreviation (SM) + seasonal (code) (U) + state_code (06) +
area_code (00000) + supersector_code (42) + industry_code (000000) + data-type_code (01).

Part B: ACRL Information Literacy Frames as FRED-Integrated Abilities
Select one of the two following options.
Option A: Plotting Nominal and Real Wages Across Individual States

[10 minutes]

NOTE: Figure 1, referenced in Option A, is accessible through the following FRED public dashboard:
https://research.stlouisfed.org/dashboard/18382, which also includes the same graph-building steps and
discussion questions provided below for Option A.
1. Assign each student a state minimum wage series from the following FRED page:
https://fred.stlouisfed.org/categories/33831.
2. Tell the students they will plot a FRED graph of the state minimum wage series assigned and adjust the data
for inflation using the formula real=(nominal/CPI)*100. They will then add a similar series for another state
(perhaps one they’d like to move to) and compare the two. Instruct the students to follow the steps below.
(NOTE: Figure 1 is a sample graph built following the noted graph-building steps.)
Step 1. Use the FRED search box to search for and select your first state minimum wage series, then click
“Add to Graph” to create the graph.
Go to the “EDIT GRAPH” panel to complete the next steps:
Step 2. “EDIT LINE 1”: Use the search box under “Customize data” to search for and select “Consumer Price
Index for All Urban Consumers: All Items, Index 1982-1984=100, Seasonally Adjusted (CPIAUCSL),”
then click “Add.”
Step 3. In the “Formula” box, enter “(a/b)*100” and click “Apply.”
Step 4. Select “ADD LINE.” Search for your second state minimum wage rate, select it, and click “Add data
series.”
Step 5. “EDIT LINE 2”: Use the search box under “Customize data” to search for and select “Consumer Price
Index for All Urban Consumers: All Items, Index 1982-1984=100, Seasonally Adjusted (CPIAUCSL),”
then click “Add.”
Step 6. In the “Formula” box, enter “(a/b)*100” and click “Apply.”
3. Invite students to report the following information: the source, latest observation, date updated, and
frequency.

Figure 1
Discussion Questions
•
•
•
•
•
•

What is a minimum wage? (A price floor for paid work; the lowest wage that employers may legally
pay for an hour of labor)
Who decides a state’s minimum wage? (A state’s minimum wage, or lack thereof, is generally
controlled by the legislature within that state.)
On FRED, where do you find the source information for the data? (In the “NOTES” section at the
bottom of the page)
What is the source of the minimum wage data? (The source is the U.S. Department of Labor, a
federal agency.)
When were the data last updated? Why might this matter? (Data may not reflect current values;
data that change frequently may not be accurate if the data are months/years out of date.)
Notice the different sources for the wages and the CPI data (the U.S. Department of Labor and the
U.S. Bureau of Labor Statistics, respectively). How do the two agencies complement one another?
(Because the two agencies have separate responsibilities and employ different methodologies, they
each provide a different view of the data.)

4. Emphasize that the students have created a new piece of information—real wages—by combining two
existing pieces of information (i.e., nominal wages and the price level). In this case, the whole of the new
concept is larger than the sum of the two parts that make it. Stress that the sources of the data are very
important here. (You may want to reference spring water as a metaphor: What is the source? Where did
it come from? What is inside it?)

Option B: Plotting the Nominal and Real Earnings Gaps Between Men and Women

[10 minutes]

NOTE: Figures 2 through 4, referenced in this pedagogical strategy, are accessible through the following FRED
public dashboard: https://research.stlouisfed.org/dashboard/18397, which also includes the same graphbuilding steps and discussion questions provided for Option B.
1. Arrange students into several groups. Direct them to the following website:
https://fred.stlouisfed.org/release/tables?rid=332&eid=46359. Instruct them to create a single graph with two
data sources according to the following steps (Figure 2 was created using these steps):
Step 1. Under “Median weekly earnings (current dollars),” select “Men, 16 years and over.”
Step 2. Under “Median weekly earnings (current dollars),” select “Women, 16 years and over.”
Step 3. Click the “Add to Graph” button at the top of the table.
2. Invite each group to report the following information: the source, latest observation, date updated, and
frequency.

Figure 2
Discussion Questions
• What is the trend in nominal weekly earnings for men and women? (Increasing)
• Whose weekly earnings are higher? (Men’s)
• Over time, has the nominal earnings gap between men and women been increasing, decreasing, or
constant? (Although the naked eye suggests that the nominal earnings gap has not changed in
magnitude, in truth it has increased.)
3. Instruct the groups to create a new FRED graph (Figure 3) showing the nominal earnings gap between men
and women according to the following steps:
Step 1. Use the FRED search box to search for and select “Employed full time: Median usual weekly nominal
earnings (second quartile): Wage and salary workers: 16 years and over: Men, Quarterly, Seasonally
Adjusted (LES1252881800Q),” then click “Add to Graph” to create the graph.
Go to the “EDIT GRAPH” panel to complete the next steps:

Step 2. “EDIT LINE 1”: Use the search box under “Customize data,” to search for and select “Employed full
time: Median usual weekly nominal earnings (second quartile): Wage and salary workers: 16 years
and over: Women, Quarterly, Seasonally Adjusted (LES1252882700Q),” then click “Add.”
Step 3. In the “Formula” box, enter “a-b” and click “Apply.”

Figure 3
Discussion Question
• Over time, has the nominal earnings gap between men and women increased, decreased, or
remained constant? (Although the naked eye suggests that the nominal earnings gap has not changed
in magnitude, in truth it has increased.)
4. Instruct the students to adjust (on the graph just created) the nominal earnings gap between men and
women for the CPI according to the following steps (Figure 4):
Step 1. In the graph just created, go to the “EDIT GRAPH” panel. “EDIT LINE 1”: Use the search box under
“Customize data” to search for and select “Consumer Price Index for All Urban Consumers: All
Items, Index 1982-1984=100, Seasonally Adjusted (CPIAUCSL),” then click “Add.”
Step 2. In the “Formula” box, enter “((a-b)/c)*100” and click “Apply.”

Figure 4
©2018, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the
user credits the Federal Reserve Bank of St. Louis, www.stlouisfed.org/education.

Discussion Questions
•

•

Over time, has the real earnings gap between men and women increased, decreased, or remained
constant? (The answer depends on the time range considered: The real earnings gap markedly
decreased between 1980 and 1995, remained relatively constant between 1995 and 2001, and
declined [on average and at a very uneven rate] thereafter.)
How is it possible for the real earnings gap between men and women to decrease while the nominal
earnings gap between men and women increases? (The cost of living rises faster than the nominal
earnings gap between men and women.)

Part C: Assessment
Choose from among the following activities.
In-Class Activities
1. Have students report on individual or group work (kind of a verbal gallery walk).
2. Assign a “minute paper.” Have students write (or verbally state) their answers to these questions, giving
them a minute to answer each:
a.
b.
c.
d.

What worked during the lesson?
What was confusing about the lesson?
How will you apply what you learned today?
Other, optional, questions: What surprised you about what you learned today? What questions were
left unanswered for you? Was there anything you did not understand?

3. Develop a short, individual, multiple-choice questionnaire with attitudinal statements such as, for example,
the following: With which of these statements do you agree the most?
a.
b.
c.
d.
e.

I found the instructions to build the FRED graph easy to follow.
I was surprised to learn about the differences in minimum wages across states.
I had a hard time building the FRED graph on my own.
I now have a better understanding about citations and sources.
I want to learn more about the topic we discussed before making my mind up about it.

Out-of-Class Activities
1. Assign a short written report in which students summarize what they learned during the instructional
session and reflect on the in-class activities, identifying one aspect they thought worked well and one aspect
they found confusing.
2. Assign a short writing assignment, such as the following, where students answer a follow-up question by
building additional FRED graphs and interpreting the data patterns:
a. Compare the real median household income between the state where you are now and the state you
want to move to after graduation. For each state, how many hours would you have to work each year at
the state’s current minimum wage rate to reach the state’s median income?
b. Compare the number of men and women holding multiple part-time jobs. How does that difference
impact the total real earnings for all men and womennot just those employed full time?
c. Compare nominal and real median weekly earnings across age, sex, and race groups. What patterns do
you observe?
i.
The nominal (current-dollars) data are available here:
https://fred.stlouisfed.org/release/tables?rid=332&eid=46373.
ii.
The real (inflation-adjusted-dollars) data are available here:
https://fred.stlouisfed.org/release/tables?rid=332&eid=46420&snid=46432.

Part D: Resources
The Great Inflation
https://www.federalreservehistory.org/essays/great_inflation
The Great Inflation Online Course for Teachers and Students
https://www.stlouisfed.org/education/the-great-inflation-online-course-for-teachers-and-students
Lack of Independence in the Hellenic Statistical Agency
https://euobserver.com/economic/29258
Nigerian Official and Parallel Exchange Rates
https://www.ft.com/content/686ceaa5-81a6-375e-b4c1-e7a2981f52bf
Data Manipulation and the Big Mac Index
http://www.economist.com/node/18014576
Data Manipulation and the Credibility of Official Statistics
http://www.economist.com/node/21548242
Glossary of Economics and Personal Finance Terms
https://www.stlouisfed.org/education/glossary

Appendix A
Example Optional Activity on Sources: CPI
In the “FRED Interactive: Information Literacy” online course, real wages are expressed as a ratio between
nominal values and the consumer price index (CPI). The CPI is the most common measure of the cost of living in
the United States used by economists and policymakers. It is useful to understand some basic facts about the
CPI:
CPI: https://www.bls.gov/cpi/questions-and-answers.htm
● What is it? It is an index that measures the average change over time in the prices paid by urban consumers
for a basket of consumer goods and services.
● What’s its source? The U.S. Department of Labor, Bureau of Labor Statistics, a federal agency
● What’s its frequency? Monthly
● Who holds the intellectual property rights for the CPI? Created by a U.S. federal agency, the data are in the
public domain. This means they can be freely reused.
● Notes: CPI is the most frequently reported measure of inflation and the most popular series in FRED. Inflation
was high in the United States between 1965 and 1982, a period known as “The Great Inflation.” This lesson,
from Econ Lowdown of the Federal Reserve Bank of St. Louis, centers on this time period and discusses the
(bad) effects of high inflation.
There are alternatives to the CPI to measure the cost of living. These alternative price indexes can offer insights
into relative prices across countries, differences in the cost of living, and different ways of collecting data. If you
use different price indexes, the value of real wages will change. Some alternatives are the following:
Big Mac Index: http://www.economist.com/content/big-mac-index
● What is it? It is an index that evaluates the exchange rate between currencies through the concept of
“purchasing power parity.” It allows people to intuitively understand price differences and the cost of living
across countries by showing the cost of a McDonald’s Big Mac hamburger in different countries.
● What’s its source? The Economist, a weekly news magazine
● What’s its frequency? Annual
● Who holds the intellectual property rights? The data are created and owned by The Economist. This means
that the data cannot be reproduced without permission (but it can be cited).
● Notes: The Big Mac Index has been cited as evidence of statistical manipulation. In 2011, The Economist
reported that the index strongly suggested that the Argentine government was manipulating its official
statistics by underreporting the rate of inflation. As a response, allegedly, the Argentine government
pressured local McDonald’s to either sell the Big Mac with other items (thus masking its price) or lower the
price. The Economist wrote this article about the (lost) credibility of “fudged” data.
The Billion Prices Project: http://www.thebillionpricesproject.com/
● What is it? It is a project that builds indexes using prices collected daily from hundreds of online retailers
around the world. It is primarily intended for use by researchers.
©2018, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the
user credits the Federal Reserve Bank of St. Louis, www.stlouisfed.org/education.

●
●
●
●

What’s its source? Started by two economists at the Massachusetts Institute of Technology (MIT), it is
housed at that institution.
What’s its frequency? Daily
Who holds the intellectual property rights? Only historical data sets from peer-reviewed publications are
available and free to download.
Notes: This an example of what people sometimes refer to as “big data” because it uses millions or billions of
micro-level transactions to capture changes in the cost of living.

Students might find it useful to explore other well-regarded indexes that are not price indexes:
Human Development Index: http://hdr.undp.org/en/content/human-development-index-hdi
Corruption Perceptions Index: https://www.transparency.org/research/cpi/overview

Appendix B
ACRL Information Literacy Frames and Knowledge Practices Aligned with This Lesson Plan
Research as Inquiry—Select Knowledge Practices
Learners who are developing their information literacy abilities
❏ formulate questions for research based on information gaps or on reexamination of existing, possibly
conflicting, information;
❏ determine an appropriate scope of investigation;
❏ deal with complex research by breaking complex questions into simple ones, limiting the scope of
investigations;
❏ synthesize ideas gathered from multiple sources;
❏ draw reasonable conclusions based on the analysis and interpretation of information.
Information Creation as a Process—Select Knowledge Practices
Learners who are developing their information literacy abilities
❏
❏
❏
❏
❏

articulate the capabilities and constraints of information developed through various creation processes;
recognize the implications of information formats that contain static or dynamic information;
monitor the value that is placed upon different types of information products in varying contexts;
transfer knowledge of capabilities and constraints to new types of information products;
develop, in their own creation processes, an understanding that their choices impact the purposes for
which the information product will be used and the message it conveys.

Scholarship as Conversation—Select Knowledge Practices
Learners who are developing their information literacy abilities
❏ cite the contributing work of others in their own information production;
❏ contribute to scholarly conversation at an appropriate level, such as local online community, guided
discussion, undergraduate research journal, conference presentation/poster session;
❏ critically evaluate contributions made by others in participatory information environments;
❏ identify the contribution that particular articles, books, and other scholarly pieces make to disciplinary
knowledge;
❏ recognize that a given scholarly work may not represent the only or even the majority perspective on
the issue.
Authority Is Constructed and Contextual—Select Knowledge Practices
Learners who are developing their information literacy abilities
❏ use research tools and indicators of authority to determine the credibility of sources, understanding the
elements that might temper this credibility;
©2018, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the
user credits the Federal Reserve Bank of St. Louis, www.stlouisfed.org/education.

❏ understand that many disciplines have acknowledged authorities in the sense of well-known scholars
and publications that are widely considered “standard,” and yet, even in those situations, some scholars
would challenge the authority of those sources;
❏ recognize that authoritative content may be packaged formally or informally and may include sources of
all media types;
❏ acknowledge they are developing their own authoritative voices in a particular area and recognize the
responsibilities this entails, including seeking accuracy and reliability, respecting intellectual property,
and participating in communities of practice;
❏ understand the increasingly social nature of the information ecosystem where authorities actively
connect with one another and sources develop over time.