Unit 3 BU204 Assignment Long-Run Economic Growth

Long-Run Economic Growth

Download the assignment template from Course Documents, and insert your answers to each question in the appropriate places.

This assignment deals with how economists measure various nations’ economies using measures such as Gross Domestic Product (GDP). In this assignment, you will also deal with how to measure the cost of living changes and rate of unemployment in the economy.

This assignment assesses your knowledge of the following Course Outcome:

BU204-2: Examine macroeconomic aggregate indicators, such as the GDP, inflation rate, unemployment rate, and their implications on the national economy.

 

https://krannert.purdue.edu/centers/pcee/economics-help/economic-data-sources.php

 

1) Using the same procedures described in the Unit 3 Learning Activity and listed in the World Bank Research Steps document, choose two different countries than the countries chosen during the learning activity, and perform the same analysis, answering the questions below. Collect the data requested below from the World Bank for the year of 2000 and for the year of 2015. The World Bank data is available from the Purdue Center for Economic Education.

a) Choose any two countries and for each country, download and list the following data from the World Bank, in an Excel spreadsheet, for both the year ending 2000 and the year ending 2015:

i) Industry (including construction), value added

ii) GDP

iii) GDP per capita

iv) Population, total

v) Employment in agriculture (% of total employment) (modeled ILO estimate)

vi) Employment in industry (% of total employment) (modeled ILO estimate)

vii) Employment in services (% of total employment) (modeled ILO estimate)

viii) Employment to population ratio, over 15 years of age total percentage.

ix) Land area (sq. km)

(b) Correctly calculate the percentage differences for each set of data, for each country between the year 2000 and the year 2015. Also, correctly calculate the percentage difference between your two countries for the year 2015 for each of the data elements.

(c) In a 400 – 500-word essay, explain, in detail, WHY you think these values are different between the two countries and how long run economic growth operates differently between these two countries.

2) Assume there is a simple economy where people consume only two goods, food and clothing, as shown in the table below. Further assume that the market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing.

Yearly Price per Unit

Food

Clothing

2004 price per unit

$8

$20

2005 price per unit

$12

$40

  1. Compute the percentage changes in the price of food and the percentage change in the price of clothing between 2004 and 2005.
  2. Calculate the percentage change in the CPI between 2004 and 2005.
  3. Do you think the CPI price changes affect all consumers in the economy to the same extent? If not, how do you determine who “wins” and who “loses” in this particular situation? Explain why these differences would exist.

References

DiGiammarino, E.L. (2019). Research steps – AB or BU 204 macroeconomics course [Video]. YouTube. https://youtu.be/9lC6SaCN2WU

Economic data sites. (n.d.). Purdue Center for Economic Education. https://krannert.purdue.edu/centers/pcee/economics-help/economic-data-sources.php

Directions for Submitting Your Assignment

Before you submit your assignment, you should save your work on your computer in a location and with a name that is specified in item 1 of the General Instructions within your assignment template. When you are ready, you may submit to the Unit 3 Assignment Dropbox. Use the attached template to complete answers

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