Points to cover in your report
1. (10%) Using the data provided, select the data corresponding to any country you choose (only one) for the period 1960-2016, and save it in a separate file.
2. (10%) Identify the following variables from the data set:
• Household consumption (real)
• Household consumption (real) per capita
• Real GDP
• Real GDP per capita
• Inflation rate based on the CPI (must be calculated)
3. (30%) For each of the variables above, and the period 1960-2016, do the following:
• A scatter plot diagram (years in the x-axis and the variable in the y-axis) with a linear or exponential trend line (linear for inflation and exponential for real GDP and consumption). Make sure to add the equation of the trend line in your graph.
• Analyze each graph and the meaning of the trend line equation. For the consumption and real GDP graphs, analyze the economic growth rate (total and per capita), identifying periods of recession and the growth rate of consumption. For the inflation rate, identify periods of inflation, deflation, and the total average inflation rate.
4. (30%) Using a scatter plot diagram, draw the relation between real GDP per capita (x-axis) and consumption per capita (y-axis), adding a linear trend line with its corresponding equation. From this graph, identify and analyze the MPC and the multiplier effect.
5. (20%) For the country selected, find the rate of unemployment for the last 20 years (or more if available), and calculate an estimate of the unemployment rate. Present this in a scatter plot diagram, and calculate the cyclical unemployment in, at least, one period of recession that you identify. Note: the data on unemployment is not provided to you. You need to download it from any other source (don’t forget to add the source in your report). One suggestion is to use the World Bank Data website