Task Details: Each student will complete a research-based analysis and evaluation of the macroeconomic performance of Australia and the United States of America (USA) from 1990 to 2015.
Students will follow the following procedure:
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- Obtain data on key macroeconomic indicators: real GDP, interest rates, unemployment rate, CPI, exchange rate, exports and imports (NX) [Note: All raw data are to be presented in Appendix only].
- Produce graphs and tables of summary statistics of real GDP growth rates, inflation rates, unemployment rates, exchange rates, interest rates and the growth rate of NX. [Note: Downloaded graphs are not acceptable]
- Use the information obtained in (1) and (2) above to answer the following question:
- How is real GDP growth related to the other indicators in Australia and the USA? Explain.
- Briefly comment on the correlation between interest rate and inflation and interest rate and unemployment?
- Are the macroeconomic indicators in Australia and the United States correlated? Explain
- In which country has monetary policy been tighter in the past decade? Critically Explain.
- Write a short prediction of the macroeconomic outlook each country. Which of the two countries, Australia or USA, is more likely to experience a recession or expansion soon? Critically explain.