Guidelines for the Assignment:
The following are key areas to discuss and you can organize your essay around
these areas using the tools (including graphs) and concepts learned in this course:
Overview – identify the key macroeconomic indicators to be discussed in
the essay; brief overview of the theoretical relationship between selected
Empirical analysis – based on actual data (of a country), discuss the
relationship between macroeconomic indicators preferably using graph
and other statistical tools (such as correlation coefficient, regression);
discuss whether the relationship is positive, negative or ambiguous;
discuss any interesting observation or trend
Conclusion – any concluding remarks about findings and what policy
implications it offers
Potential Macroeconomic Indicators for Analysis (some of those that we discuss in
Consumption, Investment, Government Spending and Exports
Real GDP, Nominal GDP and GDP Deflator
Consumer Price Index and Producer Price Index
Unemployment rate and Labor Force Participation rate
Money Growth and Inflation
Inflation and Unemployment
Some potential macroeconomic issues for analysis:
Does higher GDP growth leads to lower unemployment?
Does higher inflation leads to lower GDP growth?
Does higher exports leads to higher GDP growth?
Does higher money growth leads to higher inflation?
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