Data Collection & Interpretation.
Macroeconomists collect and interpret a variety of macroeconomic data to gauge the performance of an economy over time and to compare economic performance across economies. Being able to gather, present and interpret statistical information is an important skill for an economist. In this assignment, you are required to collect, graph and interpret some time-series data.
(a) What is real GDP (RGDP)? Collect time series RGDP data for Australia, China and Indonesia for the 5 year period covering 2008-2012. Record this data in an Excel spreadsheet and create a single line graph for each country of your time-series data.
(1+1+2 = 4 marks)
(b) Using the data above, calculate the RGDP growth rates for all the countries and draw a business cycle diagram for each of the countries using the RGDP growth rates. What phase of the business cycle would you consider each economy to be currently in?
If you find that the countries are experiencing either expansion (boom) or contraction, what policy options would you suggest bringing the country back to long-term equilibrium? Explain your conclusions.
(c) Select ONE of either Australia or China or Indonesia and collect time series data on its inflation and unemployment rate for the same 5 year period (i.e. 2008-2012inclusive). Graph the RGDP, inflation and unemployment data for the chosen country on a single graph. Describe the general relationship between each of the 3 time-series for that country.
Suggest two possible demand and two possible supply factors that may explain the changes in inflation and unemployment rates. Illustrate with AD/AS model and suggest one policy option to bring the country to the full-employment equilibrium.
(2+2+2 + 3 = 9 marks)
Presentation and Referencing: Please ensure that your tables and graphs are fully labelled, neatly presented and display the source of the data they contain. Your assignment must reference any published material you used directly or indirectly.
Total marks: 20
Some useful and reliable electronic references include the Australian Bureau of Statistics, (ABS), available online at www.abs.gov.au, the Reserve Bank of Australia, available online at www.rba.gov.au, and the Department of Foreign Affairs and Trade, (DFAT), available online at www.dfat.gov.au