Part A: Data collection, presentation and analysis
The economic crisis in Greece has been in the news lately, as it looked likely to default on its debt. For this part of the assignment you will be collecting, presenting and analyzing economic data for Australia, Germany, Greece and an Asian country of your choice.
(A1) Using The World Bank website (under Data), collect and present annual data showing: GDP per capita (in constant 2005 US$); the GDP annual percentage growth rate; the annual percentage inflation rate (using the GDP deflator figures); and the total unemployment rate, for each of the four countries, for the years 2005 -2014 (for some countries data may only be available up to 2013, in which case data from 2005 - 2013 is acceptable).
Present the data initially in tables. You may decide how many tables to use, and which variables/countries to include in each table. Each table must be numbered and have a clear heading/title indicating its contents, and a reference for the source of the data under the table.
Use the data to construct the following graphs, using the graphing tool (line graphs) in Excel. Indicate under each graph which table/s the data came from. Make sure you also label each axis and each variable, and give your graph a title.
(A2) describe and analyse any general relationship you see between the three variables in each of the countries. Is the relationship similar in each of the countries? On the basis of the data collected, analyse any similarities and differences in the performance of the economies. Refer to the data you have collected to support your analysis.
No more than 300 words.
(A3) Go to the OECD Better Life index www.oecdbetterlifeindex.org, and look at the country reports for Australia, Germany and Greece. What are the "life satisfaction scores" for each country? Using the factors measured in each country's report, as well as the data you found in question A1, comment on factors you believe may contribute to each country's "life satisfaction" score. Include four factors per
country. Explain your reasoning. No more than 400 words.
Part B: Aggregate expenditure
The questions in Part B are based on the following table. The numbers are in billions of dollars. Assume taxes are zero.
|
Real GDP
|
Consumption
|
Planned
Investment
|
Government
Purchases
|
Exports
|
Imports
|
|
3,000
|
3,000
|
350
|
420
|
300
|
320
|
|
4,000
|
3,750
|
350
|
420
|
300
|
320
|
|
5,000
|
4,500
|
350
|
420
|
300
|
320
|
|
6,000
|
5,250
|
350
|
420
|
300
|
320
|
(B1) Calculate Aggregate Expenditure and the equilibrium level of Real GDP. In your answer include the definition of aggregate expenditure, and explain why the level of real GDP you have identified is the equilibrium level, and what this means.
(B2) What is the value of the multiplier in this economy? Show your workings, and explain what the multiplier measures.
(B3) Draw an Aggregate expenditure/45 degree line diagram to illustrate the equilibrium level of real GDP using information from the above table and your answers to questions B1 and B2. Label all the parts of your diagram, and explain how it is constructed. What is the slope of the Aggregate expenditure line? Explain your answer.
(B3) If potential GDP is $7,000, by how much does Government expenditure have to increase by to move the economy to the full employment level of GDP? Show your workings and explain your answer.
(B4) Calculate the annual rate of growth in this economy if real GDP increases from the equilibrium level you found in B1 to $7,000 in one year.
Presentation and Referencing:
Assignments must be typed. Answers should be in full sentences, which have been checked for grammar and spelling. Marks will be deducted if your ideas are expressed poorly or are confused, and cannot be awarded if your expression is ambiguous. Overly wordy answers that include irrelevant information will also be penalized. Data should be neatly presented in table and graph format where requested, with sources correctly documented. The tables and graphs should have a relevant title and each axis on the graphs should be correctly labeled. Sources of data should be acknowledged under each table and graph and fully documented using a reference list presented at the end of the assignment.