Template for Three Pillars: Unemployment, Inflation and Economic Growth

ECON1000 Macro Paper HINTS

Please ensure that you answer the question asked as concisely as possible. NO ESSAY is required.

Macro paper Part a

With real life data other outside factors can impact so could lead to fluctuations so don't try to look at the entire period but choose one or two 3-4 year periods. It might be a good idea to stay away from 2007 to about 2009 as financial crisis occurred during this time so it would be difficult to find a trend. So could choose a period before 2007 and one after 2009.

To choose period(s):

• Pick one of the variables and focus on the segment of data where you can see some trend for that variable. (Either increasing each year or decreasing each year over the entire 3-4 years)

Once you have decided on the period use that period to compare what is happening across the 3 variables given. Do you see any patterns? Is there a positive relationship? Negative relationship? No relationship? You will then support your findings by using the data for the period(s) chosen.

Do this for both the developing and developed country.

To compare developed and developing focus on the periods that overlap and discuss similarities or differences.

NOTE: There is no need to bring in outside information or to explain what is causing the relationship.

Macro paper Part b

You first need to decide whether you think the 3 goals can be achieved together or not.

Once you make your decision you have to support it by coming up with THREE reasons.

• So if you said yes they can be achieved together then provide THREE reasons why this is the case.

• If you said no they cannot be achieved together then provide THREE reasons why this is the case.

You must clearly state each reason then provide an explanation.

This is NOT an essay so no need for intro, body and conclusion just answer the questions by filling in the appropriate spaces in the template.

Macro paper Part c

Compare responses from part a and part b and discuss whether similar or different and provide justification

Macro paper Part d (i)

Identifying variable(s) – low unemployment, low inflation or economic growth

· Can choose to target one, two or all three

Justification for choice of variable(s)

· Must indicate reason for focusing on the selected variable(s)

· This reason must be based on some theoretical perspective so a little research might be required here.

o Could be based on your findings in part b

Macro paper Part d (ii)

Need to identify THREE policies

· Policies could be monetary, fiscal or some other supply side policy

· A little research is required here

You must clearly state the policy then provide an explanation.

Explanation MUST be specific to the variable you are focusing on.

For example,

Variable – Low Unemployment

Policy - ………..

Explanation

· Must outline how policy …… will lead to low unemployment.