Econ Essay

2159 Words Jun 5th, 2016 9 Pages
Part A (10 marks)
Question 1.
Collect and present (in graph format), annual data for the years 2006 to 2014 showing the rate of growth of real GDP, the inflation rate, and the unemployment rate for Australia, the United States and one Euro-zone economy of your choice.
Using the graphing tool in Excel, present three time-series line graphs: one for each economy containing all three variables. Label each axis, give your chart a title and state source of data.
Graph 1: The 2006-2014 data of the GDP annual growth rate, the inflation rate, and the unemployment rate of Australia
Source: data. World bank.org. Graph 2: The 2006-2014 data of the GDP annual growth rate, the inflation rate, and the unemployment rate of the United States
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The comparative line graphs of Graph 4, Graph 5 and Graph 6 indicate the economic conditions of three different economies, Australia, the United States and France. GDP, or Gross Domestic Product, refers to the total income of every member of the economy (Mankiw, 2016, p.18). It can reflect the economic performance of an economy. The GDP annual growth rate of different economies can reflect the economic growth of them. The inflation rate indicates how fast the prices of goods increase in the economy (Mankiw, 2016, p.111) or the percentage of the increase in the price level from one year to another (Hubbard and O’Brien, 2013, p.242). The unemployment rate is the statistic which indicates the percentage of people who have the ability of working but do not have a job in the economy (Mankiw, 2016, p.38). These statistics can all be used to understand the development of labor market and the economic performance of an economy.
In Graph 4, it can be seen that since 2007, the GDP annual growth rates of Australia, the United States and France have been decreasing sharply. In 2009, the GDP annual growth rates reached the lowest and started to grow slowly. In 2008, the inflation rate of Australia, the United States and France reached the highest point and started to fall in 2009 when the GDP annual growth rate of the economies started to grow again. Also, in 2008, the

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