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What is the current state of the economy

Assignment Help Macroeconomics
Reference no: EM131634492

Instructions

Each student will research and assess one country according to the criteria listed below. Students will determine appropriate responses to the questions provided and summarize their findings in a 5-6 page formal essay following APA formatting and style guidelines. At the end of this document, a few sources have been cited that will provide a starting point for research relating to the Canadian economy. Data on the economy of the United Students of America (USA) is available easily from the web page of the Federal Reserve System and other federal statistical agencies. If you choose a country other than Canada and USA, the web pages of United Nations (UN) agencies will be helpful.

1. Choose the country you would like to research:

a. Canada

b. U.S.A.

c. Any other country in which you have a particular interest.

2. In your essay, you will consider and address the following questions and points:

a. What is the current state of the economy that you have chosen? Collect the latest available data on nominal GDP, real GDP, per capita real GDP, unemployment rate, inflation rate, interest rates, exchange rate(s), and any other important macroeconomic data.

b. Is the country experiencing an inflationary gap or a recessionary gap?

c. What kind of macroeconomic policy should this country follow?

d. Is the real GDP growing and at what rate?

e. What is the per capita real GDP on Purchasing Power Parity basis? What is the trend in this variable? Is the per capita real GDP increasing? Can you find the relevant data for the last couple of years or more?

f. Is the current unemployment rate close to NAIRU? Higher or lower?

g. At what stage of the Business Cycle is this country presently in? Is there an inflationary or recessionary gap?

h. What kind of fiscal and monetary policies is this country presently following? Expansionary or contractionary?

i. What kind of exchange rate policy is this country presently following? Fixed exchange rate or flexible exchange rate?

j. How is this country's economy going to perform in the coming years? What does the future look like? Will the unemployment rate and inflation rate change? Why or why not?

Verified Expert

The solution contains in total 1500 words and has been done by using the Harvard referencing style. The solution contains details with respect to the macroeconomic condition of one of the countries in the world. For the research purpose the country chosen is United States. The solution contains the incumbent as well as future outlook for the country.

Reference no: EM131634492

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len1634492

9/9/2017 2:46:24 AM

What kind of exchange rate policy is this country presently following? Fixed exchange rate or flexible exchange rate? How is this country's economy going to perform in the coming years? What does the future look like? Will the unemployment rate and inflation rate change? Why or why not?

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