Choose one country to address the following:
Identify current or emerging macroeconomic problem (s) in the specified country.
Assess the macroeconomic conditions of the economy using the most recent ten years data on economic growth, inflation, unemployment and other relevant variables. Possible sources of data include St. Louis FRED, the U.S. Bureau of Economic Analysis, and the World Bank’s World Development Indicators. In addition to Excel, students may use analytic tools from these data platforms to produce tables and graphs for descriptive analysis.
How is the country influenced by developments in the global economy?
Consider alternative macroeconomic policies, fiscal policy or/and monetary policy, to address the problem raised in (1.A.) and explain how the chosen policy solves the problem.
What are the implications of the macroeconomic problem in (1.A.) and the suggested policies in (1.D.) on households and firms?
Convergence Test for one US industry:
Select an industry:
https://www.bea.gov/iTable/iTable.cfm?reqid=70&step=1&isuri=1&acrdn=2#reqid=70&step=4&isuri=1&7003=900&7001=1900&7002=1&7090=70 (Links to an external site.) (Link will open in new tab.)
Test whether states with low initial output (real GDP in 1997) in that sector tend to grow faster than states with high initial output during the period 1997-2020.
Growth is measured by Compound Annual Growth Rate (CAGR).
CAGR = (Ending value / Beginning value) ^ (1/n) – 1
where the ending value is real GDP in 2020, the beginning value is real GDP in 1997, and n is 23 years.
Plot the values of growth in output against the natural logarithm of initial output (real GDP in 1997); that is, the values of growth on the vertical axis and the values of natural logarithm of real GDP in 1997 on the horizontal axis. Do you observe an inverse relationship between the two variables? Explain.
Paper format: 12-point font size, double-spaced.
Page limit: a maximum of five pages for the writing part of the project, excluding tables and graphs, the front page and the reference page.
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Identify current or emerging macroe appeared first on Skilled Papers.