1 PROJECT ANALYSIS OF MACROECONOMIC INDICATORS XXXXXXXXXXdue by Friday, 8th April) Marks: 10 points XXXXXXXXXXPage Limit: 5-8 pages Individual project You are required to prepare a short essay (of 5-8...

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1 PROJECT ANALYSIS OF MACROECONOMIC INDICATORS (due by Friday, 8th April) Marks: 10 points Page Limit: 5-8 pages Individual project You are required to prepare a short essay (of 5-8 pages) by analyzing the relationship between macroeconomic indicators of your own interest from real-world data. 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 have discussed 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 • Interest rate • Inflation and Unemployment Some potential macroeconomic topics/issues for analysis: • Does higher GDP growth lead to lower unemployment? • Does higher inflation lead to lower GDP growth? • Do higher exports lead to higher GDP growth? • Does higher money growth lead to higher inflation? • Does higher interest rate lead to lower investment? • Macroeconomic determinants of Economic Growth • Macroeconomic determinants of Inflation • Macroeconomic determinants of Investment • Macroeconomic determinants of Unemployment • Impact of Fiscal and Monetary Policy on Economic Growth Guidelines for the Project: • 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 o Data sources and description of the data o Based on actual data (of a country or set of countries), discuss the relationship between macroeconomic indicators preferably using 2 regression and other statistical tools (such as correlation coefficient, descriptive statistics); 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. ➢ References • The length of the essay should be between 5 to 8 pages (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 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 project needs to be further refined. Your project will be graded on the quality of your analysis and the effectiveness with which you communicate your ideas. Selected Sources of Macroeconomic Data 1. World Bank Data – o https://databank.worldbank.org/home.aspx o https://datatopics.worldbank.org/world-development-indicators/ 2. OECD iLibrary Statistics – o https://www.oecd-ilibrary.org/statistics;jsessionid=2i6vmkkrfb9c5.x-oecd- live-02 o https://www.oecd-ilibrary.org/economics/data/main-economic- indicators_mei-data-en 3. International Financial Statistics – o https://data.imf.org/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b&sId=- 1 o https://data.imf.org/?sk=4c514d48-b6ba-49ed-8ab9- 52b0c1a0179b&sId=1409151240976 4. Some other sources – o https://www.economicsnetwork.ac.uk/data_sets https://databank.worldbank.org/home.aspx https://datatopics.worldbank.org/world-development-indicators/ https://www.oecd-ilibrary.org/statistics;jsessionid=2i6vmkkrfb9c5.x-oecd-live-02 https://www.oecd-ilibrary.org/statistics;jsessionid=2i6vmkkrfb9c5.x-oecd-live-02 https://www.oecd-ilibrary.org/economics/data/main-economic-indicators_mei-data-en https://www.oecd-ilibrary.org/economics/data/main-economic-indicators_mei-data-en https://data.imf.org/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b&sId=-1 https://data.imf.org/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b&sId=-1 https://data.imf.org/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b&sId=1409151240976 https://data.imf.org/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b&sId=1409151240976 https://www.economicsnetwork.ac.uk/data_sets