MACROECONOMICS 1 (ECON 1192)

GROUP ASSIGNMENT (Assignment 2) - MACROECONOMICS DATA ANALYSIS

(Word limit: 3000 words, +/- 10%. Works beyond 3,300 words will receive a deduction of 1
mark for every 100 words excess).

SUBMISSION DEADLINE: Saturday, 20th August 2022 (WEEK 8),

23:59 PM (GMT+7)

ONLY TURNITIN SUBMISSIONS WILL BE ACCEPTED

Note: It is the group’s responsibility to ensure that each member contributes in completing this
assessment. Anyone who does not cooperate may receive relevant penalty/ies. Attach the
signed contribution form with your submitted paper.

Further details:

a. You will now work together as a team, depending on the class size, groups may have 3-5
students per group. Please coordinate group formations with your respective lecturers.  
Here is a helpful module for you to be able to engage more efficiently in group work
WORKING IN GROUPS - Overview | Rise 360 (articulate.com)

b. You will need to analyse unique countries (groups should have a combination of
developing and developed countries)
c. Please note that the use of Wikipedia, Investopedia, lecture slides, and essay writing
websites as references will be penalized with a deduction of 5 marks from your total
mark.
d. Ensure that important information is in the main paper. Items in the appendix will NOT
be marked for fairness.
e. Deductions for exceeding word limit are pro-rated (eg 50 words excess=0.5 mark
deduction)
General information

Select a combination of developed countries (High-income countries) and developing countries

(Low and middle-income countries) as provided by this link: WDI - The World by Income and
Region (worldbank.org)

You will be assigned ONE of the following combinations of countries by your lecturer. The
combinations of countries to be used for the comparison/analysis are as follows

A. North America and Sub-Saharan Africa

B. South America and Central and Eastern Europe
C. Central America, Caribbean, and Australia-Oceania
D. Northern Europe and South Asia
E. Northern Africa, Southeast Asia and East Asia

The number of your group members will determine how many countries you will analyse.

3 members = 3 unique countries: 1-2 or 2-1 for developed and developing countries

4 members=4 unique countries: 2 developed, 2 developing

5 members=5 unique countries: 2-3 or 3-2 for developed and developing countries
Question 1. Short-term economic fluctuations and unemployment (20 points)

Visit the following data sources

http://databank.worldbank.org/data/reports.aspx?
source=2&series=NY.GDP.MKTP.CD&country

https://www.imf.org/en/Data

A. Collect data for the selected countries: Real GDP, real GDP per capita, GDP growth, and
unemployment rate from 2005-2021 (or up to the most recent year where data is available).
Cite your reference/s for your data source/s. All monetary data should be in USD not LCU
(local currency units). (2 points)

B. Based on the data that you have collected: (12 points)

i. During the period, identify the country that has the highest economic growth rate and the
one that has the lowest growth rate. Use graph(s) to demonstrate your answer. Discuss if the
developed countries have a lower economic growth rate compared to the developing ones and
the reason for it. (3 points).

ii. Pick one developing and one developed country in your group. Use the AD-AS model to
analyse the short-term economic fluctuation during the Covid pandemic in these 2 countries.
Clearly explain if the sources of the changes come from the AD side, AS side, or both. Back up
your answer with evidence. How do the changes impact the total output (Y), price level (P), and
unemployment (U) on the AD-AS model in theory and in practice in these countries? (9 points)

C. Unemployment (6 points)

i. Discuss the trend of the unemployment rate in developing and developed countries in your
group in the 2005-2021 period (or up to the most recent year where data is available). Is there
any evidence of unemployment associated with the business cycle in these countries in this
period? (3 points)
ii. Pick one developing country and one developed country in your group. In the highest
unemployment period of each country, identify and discuss the types of unemployment that
contribute most significantly to the unemployment rate in this period. (3 points)

Question 2. Productivity and economic growth (8 points)

i.Collect data and identify the trend of labour productivity of the countries in your group during
the 2010-2021 period (or up to the most recent year where data is available). In which country
does labour productivity grow at the fastest pace? In which country labour are most
productive? Discuss if labour productivity is the key driver of economic growth in developing
countries in your group. Compare and contrast that with developed countries. (4 points)

Recommended source: https://ilostat.ilo.org/topics/labour-productivity/

ii. Pick one developing and one developed country in your group to discuss the impact of the
Covid 19 pandemic on the factors of production (physical capital, human capital, and
technology). Back up your answer with evidence. (4 points)

Question 3. Saving-investment and monetary system (12 points)

i. Collect data from reliable sources and discuss the trend of savings (gross domestic saving) and
domestic investment (gross capital formation) of the countries in your group in the 2005-2021
period (or up to the most recent year where data is available). Discuss hinger savings mean
higher investment and higher economic growth in these countries? (4 points)

ii. Pick one developing and one developed country to identify ONE government’s policy that
was used in each country in this period to promote saving and investment? Discuss how the
policy impacts the loanable fund market. Demonstrate your answer using the loanable fund
market diagram where possible (5 points)
iii. Read the article below and identify key functions of money (bank notes) and the role of the
central bank? How do the functions of traditional money change with digital currency? Back up
your argument with other external sources. (3 points).

Link to the article:

https://www.proquest.com/docview/2653554832/A433C50341074543PQ/2?accountid=13552