Reference no: EM131061857 , Length:

Question 1

Table 1: GDP Data for Countries A and B

	Country A $billions	Country B $billions
Household Consumption	150	150
Government Purchases	250	250
Transfer payments	50	60
Total Gross Fixed Capital Expenditures	50	150
Change in Inventories	50	-50
Exports	40	40
Imports	20	20

Consider the data in table 1 for two countries: A and B.

a. Calculate the GDP for both countries.

b. Discuss the usefulness of these data in deciding which, if any, of these two countries is likely to be experiencing an economic recession.

Word Limit: 500 words

Question 2

Obtain Australia's real GDP and CPI data from 1980 to 2015. Calculate the annual growth rates of real GDP and inflation and graph both series together. Is/are there some interesting or salient relationship(s) between those two series? Provide and discuss plausible economic explanation(s), including change in economic events and change in government policy, for the relationship(s) you identified.

Word Limit: 1000 words

Question 3

Obtain Australia's real GDP and unemployment data from 1980 to 2015. Calculate the growth rates of real GDP and unemployment and graph both series together. Is/are there some interesting or salient relationship(s) between those two series? Provide and discuss plausible economic explanation(s), including change in economic events and change in government policy, for the relationship(s) you identified.

Word Limit: 1000 words