Each student will research and assess one country according to the criteria listed below. Students will
determine appropriate responses to the questions provided and summarize their findings in a 5-6 page
formal essay following APA formatting and style guidelines. At the end of this document, a few sources
have been cited that will provide a starting point for research relating to the Canadian economy. Data on
the economy of the United Students of America (USA) is available easily from the web page of the Federal
Reserve System and other federal statistical agencies. If you choose a country other than Canada and
USA, the web pages of United Nations (UN) agencies will be helpful.
Choose the country you would like to research:
Any other country in which you have a particular interest.
In your essay, you will consider and address the following questions and points:
What is the current state of the economy that you have chosen? Collect the latest available data on
nominal GDP, real GDP, per capita real GDP, unemployment rate, inflation rate, interest rates, exchange
rate(s), and any other important macroeconomic data.
Is the country experiencing an inflationary gap or a recessionary gap?
What kind of macroeconomic policy should this country follow?
Is the real GDP growing and at what rate?
What is the per capita real GDP on Purchasing Power Parity basis? What is the trend in this variable? Is
the per capita real GDP increasing? Can you find the relevant data for the last couple of years or more?
Is the current unemployment rate close to NAIRU? Higher or lower?
At what stage of the Business Cycle is this country presently in? Is there an inflationary or recessionary
What kind of fiscal and monetary policies is this country presently following? Expansionary or
What kind of exchange rate policy is this country presently following? Fixed exchange rate or flexible
How is this country’s economy going to perform in the coming years? What does the future look like? Will
the unemployment rate and inflation rate change? Why or why not?
Review all the required chapters from the course textbook: https://open.lib.umn.edu/macroeconomics/
For the Canadian economy, some useful resources may include:
Statistics Canada. (2018). Statistics Canada. Retrieved from http://www.statcan.gc.ca/start-debut-eng.html
Bank of Canada. (2018). Bank of Canada. Retrieved from http://www.bankofcanada.ca/
Wikipedia. (2017). List of countries by GDP (PPP) per capita. Retrieved from