Reference no: EM133508541
Introductory Macroeconomics
AUSTRALIA AND THE US SINCE THE PANDEMIC
In this assignment you will collect and interpret some key macroeconomic data for Australia and the United States over the course of the Covid pandemic. You will need to download data from the relevant national statistical agencies, listed below.
Assignment Tasks
1. Nominal and Real GDP: Download quarterly seasonally-adjusted nominal GDP data for Australia and the US from their respective statistical agencies, as listed below. To facilitate comparisons between the two countries and over time, scale nominal GDP in each country to have the value 100 in the last quarter of 2019 and plot the scaled series for the two countries from 2011-2023 on a single graph. Repeat this exercise for quarterly seasonally-adjusted real GDP data and plot the scaled series from 2011-2023 for the two countries on a separate graph. Briefly describe your findings. [Hint: for Australia, nominal GDP is ‘GDP at current prices' while real GDP is ‘chain volume GDP'].
2. Employment and Unemployment: Download monthly seasonally-adjusted em- ployment, unemployment and working-age population data for both countries from their respective statistical agencies. Plot the employment/working-age population ratio from 2011-2023 for the two countries on a single graph. Repeat this exercise for the monthly seasonally-adjusted unemployment rate from 2011-2023. Briefly describe your findings.
3. Inflation: Download quarterly seasonally-adjusted CPI inflation data for Australia and monthly seasonally-adjusted CPI inflation data for the United States from their respective sta- tistical agencies. Plot the year-on-year CPI inflation rates from 2011-2023 for the two countries on a single graph. Briefly describe your findings. [Hint: for Australia, use the ‘all groups CPI'].
4. Further Discussion
(a) Overall, have Australia and the United States had similar macroeconomic experiences during the pandemic? Why or why not?
(b) Since the early 1990s, the Reserve Bank of Australia (RBA) has had an official inflation target of ‘2-3 percent on average over time'. Discuss to what extent the RBA has been successful in meeting this objective in recent years.