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Question 1 [6 marks]   Word Limit: 500 words  
Table 1: GDP Data for Countries A and B  Country A
$billions
Country B
$billions Household Consumption 150 150 Government Purchases 250 250 Transfer payments  50  60 Total Gross Fixed Capital Expenditures 50 150 Change in Inventories 50 -50 Exports  40    40 Imports  20    20  
Consider the data in table 1 for two countries: A and B.  
a. Calculate the GDP for both countries.   
b. Discuss the usefulness of these data in deciding which, if any, of these two countries is likely to be experiencing an economic recession.    
Question 2 [12 marks]   Word Limit: 1000 words  Obtain Australia's real GDP and CPI data from 1980 to 2015. Calculate the annual growth rates of real GDP and inflation and graph both series together. Is/are there some interesting or salient relationship(s) between those two series? Provide and discuss plausible economic explanation(s), including change in economic events and change in government policy, for the relationship(s) you identified.   
Question 3 [12 marks]   Word Limit: 1000 words  Obtain Australia's real GDP and unemployment data from 1980 to 2015. Calculate the growth rates of real GDP and unemployment and graph both series together. Is/are there some interesting or salient relationship(s) between those two series? Provide and discuss plausible economic explanation(s), including change in economic events and change in government policy, for the relationship(s) you identified.

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