Assessment Template: Long-Run Economic Growth
Name: ______________
Course Number and Section Number: BU204M2 Section Number ____
Date: ______________
General Instructions
1. Unless specified differently by your course instructor, save this assessment template to your computer with the following file naming format: Course number_section number_Last name_First name_Unit number.
2. At the top of the template, insert the appropriate information: Your Name, Course Number and Section and the Date.
3. Insert your answers below each question, or in the appropriate space provided for in the question. Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.
4. Your answers should follow APA format by being in double-spaced paragraph format, with citations to your sources and, at the bottom of your last page, a list of references. You must provide at least ONE reference. If you have no other references, then use the textbook as your reference. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (Times New Roman, 12-point, black font).
5. Upload the completed assessment to the Dropbox.
6. Any questions about the assessment, or format questions, should be directed to your course instructor.
Assessment
This assessment deals with how economists measure various nations’ economies using measures such as Gross Domestic Product (GDP). In this assessment, you will also deal with how to measure the cost of living changes and rate of unemployment in the economy.
This assessment assesses your knowledge on the following Course Outcome:
BU204M2-2: Examine macroeconomic aggregate indicators, such as the GDP, inflation rate, unemployment rate, and their implications on the national economy.
Using the same procedures described in the 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.
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:
Industry (including construction), value added
GDP
GDP per capita
Population, total
Employment in agriculture (% of total employment) (modeled ILO estimate)
Employment in industry (% of total employment) (modeled ILO estimate)
Employment in services (% of total employment) (modeled ILO estimate)
Employment to population ratio, over 15 years of age total percentage.
Land area (sq. km)
(Enter response here.)
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.
(Enter response here.)
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.
(Enter response here.)
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
a. Compute the percentage changes in the price of food and the percentage change in the price of clothing between 2004 and 2005.
(Enter response here.)
b. Calculate the percentage change in the CPI between 2004 and 2005.
(Enter response here.)
c. 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.
(Enter response here.)
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