Compare the key macroeconomic variables of two countries (one from each group) for the past 10 years. You should analyse the data and apply macroeconomic theories to explain the changes in these variables over this period of time.
STEP 1
| Group A |
Group B |
| Brazil |
Australia |
| Russia |
Germany |
| India |
Japan |
| China |
U.S.A. |
Select one country from Group A and one country from Group B. Give a brief introduction to the two economies selected.
STEP 2
Go to World Development Indicators and collect data for the past 10 years for the following variables:
• Real GDP
• Real GDP growth rate
• Per Capita GDP
• Consumption, Investment, Government Expenditure and Net Exports as a percentage of GDP.
• Inflation rate using CPI and GDP deflators
• Unemployment rate
Question 1
What changes do you observe in the real GDP, real GDP growth rate and per capital GDP?
In which years did the real GDP growth rate decline? Find the reason for the decline.
In which years did the real GDP growth rate increase? Find the reason for the increase.
In which years did the per capita GDP increase/decrease? Find the reason for the increase/decrease.
Question 2
Compare the two countries with respect to the components of GDP. Have these percentages changed over the 10 years? If so find out why.
What are the differences between the two countries' components of GDP? Why do you think these differences exist?
Question 3
What is the change in the inflation rate during this period using (i) CPI and (ii) the GDP deflator? Explain the variation in the inflation rate.
What is the difference in the inflation rate in the two countries? Why is the inflation rate similar or different?
Question 4
What is the change in the unemployment rate during this period? Explain the variation.
What is the difference in the unemployment rate in the two countries? Explain the similarity or difference.
Question 5
Do you observe any relationship (negative or positive) between your variables (GDP, inflation rate and unemployment rate) during the ten year period? Give reasons for the relationship.