1. Look at a recent edition of The Economist. Go to the section on economic indicators. Go down the list of countries and make a list of the ones with the fastest and slowest GDP growth. Look also at the forecast rates of GDP growth. Go back to the table of contents at the beginning of the journal to see if there are articles about any of these countries. Write a paragraph or two describing the events or the economic conditions in one of the countries. Explain why they are growing or not growing rapidly.
2. During 2002, real GDP in Japan rose about 1.3 percent. During the same period, retail sales in Japan fell 1.8 percent in real terms. What are some possible explanations for retail sales to consumers falling when GDP rises? (Hint: Think of the composition of GDP using the expenditure approach.)