Intermediate Macroeconomics (23568) Tutorial 1 - Questions
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Tutorial 1 - Questions
Intermediate Macroeconomics (23568)
1. Look at GDP long run growth, period variation, and the list of Australian reces sions:
• make sure that you can identify trend and business cycles.
• Try to identify the recessions and some characteristics of growth and period variation of GDP: is growth constant? Is volatility constant?
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Begin
1 Apr 1961
1 Oct 1971
1 Jan 1974
1 Jul 1975
1 Jul 1977
1 Oct 1981
1 Oct 1990
1 Apr 2020 |
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End
30 Sep 1961
31 Mar 1972
30 Jun 1974
31 Dec 1975
31 Dec 1977
30 Jun 1983
30 Jun 1991
1 Oct 2020 |
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Figure 1: Australia GDP and trend (index, 2015=100).
Figure 2: Australia GDP growth (source: FRED data).
2. Look at the graphs of GDP, employment, wage, and inflation and discuss the co-movements of the series: which series move together with GDP (pro-cyclical), in opposite direction to GDP (anti-cyclical), or are uncorrelated with GDP (a cyclical)?
3. Considering the three components of GDP expenditure C, I, G:
• which one is more sensitive to GDP fluctuations?
• Is there any other information that we can gather by comparing the graphs?
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Consumer Price Inflation*
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Total pay excluding bonuses
Source: ABS
Figure 5: Australian wage growth (source: RBA).
Household Income and Consumption*
Real, year-ended growth
Consumption
Household sector rnciudes unincorporated enterprises; disposable income is after tax and interest payments; saving ratio is net of depreciation
Sources: ABS: RBA
Figure 6: Australian consumption and income growth (source: RBA).
Business Investment*
* Adjusted for second-hand asset transfers between the private and other sectors
Source: ABS
Figure 7: Australian business investment as a share of GDP (source: RBA).
Australian Government Budget Balance*
Source: Australian Treasury
Figure 8: Australian budget balance (source: RBA).
2022-03-18