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?
Sample Solution