How to Graph in Economics

There are numerous types of graphs that are suited to display economic data. When you graph data in economics, you should consider the type of data you are working with before you choose a graph type. After you decide on which graph is best suited to display your data, an approximation of the graph can be drawn by hand. Aside from graphing in this way, you can use various graphing programs such as Microsoft Excel and Apple Numbers to generate detailed graphs once you enter your data into the program.

Things You'll Need

  • Pencil
  • Graph paper
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Instructions

    • 1

      Use a bar graph to visually compare the maximum values of multiple economic enterprises. For example, a bar graph is apt to display the different gross domestic product (GDP) values of different nations or the current stock value of multiple corporations. On the horizontal (x-axis of the graph), write out the names of the enterprises you wish to compare at evenly spaced intervals. On the vertical (y-axis of the graph), draw in a representation of cash value or other quantitative information. Then draw shaded bars that extend from each enterprise on the x-axis to the value represented on the y-axis.

    • 2

      Use a pie chart to graph economic percentages, such as shareholding or expenditure values. Draw a large circle, then use radii to divide the circle into portions that represent each percentage value. Once the circle is fully divided, label each section with the percentage value and a description of what the percentage represents, such as the expenditure category. Since each value is represented by a differently sized portion of the pie chart, the values are easy to visually compare.

    • 3

      Use a line graph to represent economic data that is projected across time, such as varying stock values. On the horizontal, write in the intervals of time you wish to represent, such as months or years. On the vertical, write the quantitative value into values. Make dots on the graph that correspond to the quantitative value at each given point in time. Then, connect each dot to the next with a straight line. Label the graph with a description of the projected value it represents. Such a line graph allows you to visually display varying values and trends over long periods of time.

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