MACROECONOMICS WORKSHOP

Introductory Macroeconomics for 2023

Group number: …………………………………………………………………………

Assigned Country (draw randomly for each group):

- France, Sweden, New Zealand, Denmark, Australia, Brasil, Belgium, Finland, India, China,
Nigeria, Saudi Arabia, Czech Republic, Japan, UK, US, Germany, Canada, Singapore,
Spain, (For example, group 1 is assigned to France, group 2 is assigned to Sweden,…)

To complete the examination, you will need Microsoft Excel for the purpose of graphing.
Each bank carries one point, each graph carries 5 points. A short essay of 300 words carries 7
points. Students answering all questions will earn 100 points.
With this question, please visit the World Economic Outlook Database April 2022
(https://www.imf.org/en/Publications/WEO/weo-database/2024/April) to collect the relevant
data of the assigned country. Please note the terminology: real GDP is also called GDP at
constant price; nominal GDP is also current GDP.

25,000 8

6
20,000
4

15,000
2

0
10,000

-2
5,000
-4

0 -6
1980 1985 1990 1995 2000 2005 2010 2015 2020

Real GDP GDP Growth Rate (right)

GDP is defined as the total market value of all final goods and services produced within a
country in a given period of time. The three approaches to measure GDP are:
- …………………………………………………….. (1)
- …………………………………………………….. (2)
- …………………………………………………….. (3)

a) Figure 1 illustrates the levels of GDP and its growth rate for the United States. Produce
the same graph for your assigned country and use the information thereof to answer the
following questions:
(insert your graph here)
- The level of real GDP in 2001 was …………………………..(4). The level of real GDP
in 2023 is (or is projected to be) …………………………………….. (5). Total real GDP of this
country has increased by ………………………………….. (6) % in the last 20 years.

30,000 140

120
25,000

100
20,000

80
15,000
60

10,000
40

5,000
20

0 0
1980 1985 1990 1995 2000 2005 2010 2015 2020

Nominal GDP (National Currency) GDP Deflator (right)

The average growth rate in the last 20 years has been ………………………… (7). If this growth
rate sustains, the level of GDP of your assigned country will be doubled in
……………………………… (8) years.

b) Figure 2 presents the data on Nominal GDP and GDP deflator for the United States.
Produce the same graph for your assigned country and answer the following questions:
(insert your graph here)
 - The level of nominal GDP in 2001 was …………………………..(9). The level of
nominal GDP in 2022 is (or is projected to be) …………………………………….. (10). Total
nominal GDP of this country has increased by ………………………………….. (11) % in the
last 20 years.
- Nominal GDP for your assigned country has grown faster than real GDP. The reason for
this difference is ………………………………… (12).
- The GDP deflator of your assigned country was ………………….. (13) in 2001. In 2022
it is (or is projected to be) ……………………………….(14). The price level has increased
……………………………… (15) % in the last 20 years.
- This question is based on the GDP deflator. If a person earned 1 million income in
national currency in 2002, that income in 2022 price is …………………………………….. (16).
If a person earns 1 million of income in national currency in 2021, this income in 2000 price
level is……………………………(17).

16

14

12

10

-2
1980 1985 1990 1995 2000 2005 2010 2015 2020

Inflation (GDP Deflator ) Inflation (CPI period average)

c) Figure 3 presents the inflation rates for the United States. Produce the same graph for
your assigned country and use the information thereof answer the following questions:

(insert your graph here)

- CPI and GDP deflator inflation rates in 2009 were …………………… (18) and
……………………. (19).
- Three reasons for the difference is (no more than 20 words for each point):
o ………………………………………………………………. (20)
o ………………………………………………………………. (21)
o ………………………………………………………………. (22)
- This question is based on the CPI measure of inflation. If a person needed 1 million in
national currency in 2001 to support his living, that expenditure in 2022 price is
…………………………………….. (23). If a person needs 1 million in national currency to
support his/her living in 2022, this expenditure in 2001 price level
costs…………………………… (24).

70,000

65,000

60,000

55,000

50,000

45,000

40,000

35,000

30,000

25,000

20,000
1980 1985 1990 1995 2000 2005 2010 2015 2020

d) Figure 4 presents the level of GDP per capita in constant national currency for the United
States. Produce the same graph for your assigned country and answer the following question:
(insert your graph here)
- The living standard standards in the United States has increased 19.99% between 2000
and 2020. The increase in GDP per capita in your assigned country in the same period was
………………………….. (25).
o ………………………………………… (30).