Asian Economy: Macroeconomic Concepts-Case Assessment Answer

Internal code: MAS440

Case Study Assignment:

Question:
The following is a list of Asian economies you can select from for your group’s selected country.
1.China
2.India
3.Indonesia
4.Malaysia
5.Singapore
6.Vietnam
7.Australia
Based on research undertaken under this assignment you will evaluate the economic performance of your selected countries overt the period 2011 – 2015.

PART A:
1. Economic growth and the Business Cycle
With reference to your selected economies:
a. List in the form of a table the % change in real GDP over the past 5 years, 2011 –2015.
b. Graph the business cycle for both countries over this period.
c. Identify and explain the business cycle over the period in your selected economies.

2. Aggregate Demand – Aggregate Supply
a.Identify two determinants of aggregate demand and two determinants of aggregate supply that have impacted on the level of economic activity for your selected economies in the past 12 months – i.e. 2015.
b.Explain the impact of these determinants on the level of economic activity and the price level.
c. Demonstrate this on a AD-AS diagram.

PART B:
3. Prices and the inflation rate.
a.Examine the situation of inflation over the past 2 years, 2014 – 2015.List and illustrate the inflation rate in the past two years (use data for the Consumer Price Index (CPI) OR the GDP Deflator for your selected economies).
b.Identify the prevailing type of inflation (e.g. cost-push, demand–pull) over the last two years. Explain your answer.

4. The Labour Force and unemployment
a.List and illustrate the changes in the Labour Force, unemployment and unemployment rate over the past two years.
b.Identify and explain the types and causes of unemployment which have prevailed over the period for each of your two economies.

5. Exchange rate and its impact on economic activity
You should examine:
a.Identify and illustrate the exchange rate of the two currencies in the past two years (in relation to the US dollar).
b.Identify and explain two main factors influencing movements in the exchange rate over the period.
c.What impact has the movement had on the level of economic activity (RGDP) and the price level?
d.Demonstrate this on a AD-AS diagram.

6. Comparison
a.Which of the two economies you have selected have had the better economic performance? Explain your answer giving 3 reasons (criteria) for your choice.