RMIT Classification: Trusted

Macroeconomics 2 Assessment 1

ECON 1266 MACROECONOMICS 2 ASSESSMENT 1

• Type: Group / Written Work

• Due date: 5PM, Sunday, 22 November 2020 (Vietnam local time)
• Word limit: 1,000. No extra word is allowed. You do not necessarily write up to
1,000. This is the maximum number of words. Tables / Graphs / references are not
included; but in-text citations are included.
• Use the Assessment 1 Template on Canvas.

Background
This assessment request you to apply the concept of the business cycles by examining the
macroeconomic data of some countries over the last few decades, including the recent
changes that we encounter caused by the COVID-19 pandemic.

Data collection
A. Data source: You can collect macroeconomic data from the websites of the World
Bank, the IMF, the UN, the GSO Vietnam (or the national statistics office website of
other countries).
B. Data series you are required to collect:
a. Choose two ASEAN countries and two OECD countries.
Note: You should choose countries after checking the data availability.
b. Collect the economic growth rate, household consumption (C), firm investment (I)
and government expenditure (G) of each country from 2000 to 2020 (from
January to the most recent available month). The data for 2020 are highly unlikely
available yet from the database source such as the World Bank or the OECD. In
that case, you can collect 2020 data from other sources available.
c. Choosing correct data series is a critical part of assessment. Do not ask what kind
of data series you are expected to collect to your teacher because we already learnt
this in class (Week 1 and Week 2).

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 RMIT Classification: Trusted
Macroeconomics 2 Assessment 1

Assessment Questions
1) Demonstrate the data you collected using tables or figures. All tables and figures must
be numbered and titled with clear data source (2 points). Detailed explanation is not
required. You may add brief explanation within the word limit.
2) Based on the data you collected,
a) choose one period of recession between 2000 and 2018 in each country. Explain
why you have chosen that period is a recessionary period. (2 points)
b) calculate the changes in the amount of household consumption (C), firm
investment (I), the government expenditure (G) and the marginal propensity of
consumption (MPC) in each country during the recessionary period – one year
before the recession, the recession year, and one year after the recession – you
chose in part a). Report the calculation results in a table. (2 points)
c) calculate the changes in the amount of household consumption (C), firm
investment (I), the government expenditure (G) and the marginal propensity of
consumption (MPC) in each country in 2020 – from January to June (or up to the
available month). Report the calculation results in a table (2 points). You can
combine part b) and part c) in one table.
d) explain any similarity and difference between the outcome of part b) and part c)
above. (2 points)

Notes: To avoid any deduction, read carefully Page 2 of the Assessment 1 Template file.