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(due by Monday, 30th November)
Marks: 8 points Word Limit: 1200-1500 words Individual or group of two members
You are required to prepare a short essay (of 1200-1500 words) by analyzing the relationship between macroeconomic indicators of your own interest from the data provided via blackboard. This is your opportunity to “think like an economist” and to show how economic analysis can inform our understanding of macroeconomic issues.
Potential Macroeconomic Indicators for Analysis (some of those that we discuss in class):
 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?
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 variables
 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
 The length of the essay should be between 1200 to 1500 words (a word count should appear at the end of the analysis). The analysis should be typewritten, although you can neatly hand draw any graphs that you might need for your analysis. Carefully proofread for spelling and grammatical errors.
 Students are required to submit an electronic copy by their due date. Marks will be deducted for late submission.
 The report is a team project, so every member in the group will receive the same mark. However the instructor will have discretion to deduct marks for any group member in case of lack of involvement and contribution.
 The University has very strict rules concerning plagiarism. If you use any other person’s work, words, or ideas, please cite and acknowledge the sources. Submission of work from another person, whether it is from printed sources or someone other than the student; previously graded papers; papers submitted without proper citations; or submitting the same paper to multiple courses without the knowledge of all instructors involved can result in a failing grade. Severe cases will be reported to university officials for appropriate sanctions.
 You are encouraged to discuss with me in case your assignment need to be further refined. Your assignment will be graded on the quality of your analysis and the effectiveness with which you communicate your ideas.

-pick 3 countries from the data assignment_****

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