MGMT 673 Global Economic AnalysisAssignment
1: The Great Recession

Due Date

This assignment is due by
the end of Module 2.

Objective

The global recession that
began in 2008, generally known as the Great Recession, was the worst economic
downturn since the Great Depression of the 1930s. The objective
of this assignment is a
deeper understanding of the relationship between economic indicators and the
business cycle. You will track several important economic metrics
through this extraordinary
recession and recovery.

Directions

Begin by choosing a
country of interest from those listed in Marthinsen Appendix 1-1 (Excluding the
United Kingdom as it is provided as an example). Using the
International Monetary
Funds (IMF) World Economic Outlook database, obtain the following economic
metrics for the years 2007 to the present: 1. Gross Domestic
Product, 2. Investment, 3.
Saving, 4. Inflation, 5. Unemployment rate, and 6. Government debt. Data for
some countries may be incomplete. If so, please choose
another country.

For this assignment, begin
with an introduction explaining the purpose of the paper and the country
chosen. Then, present these metrics graphically so that relationships to the
contraction and subsequent
expansion in GDP are apparent. Detailed guidance on how to create a graph in MS
Excel is provided below. The IMF database allows for several
choices for the
computation of each metric, so notes to the graph and in raw data should
specify what the metric measures, for example, year over year percentage
change in GDP. Next,
explain how and why each varied during the course of the Great Recession.
Determine whether each indicator (except GDP, which is the measure of
the recession) is
procyclical, countercyclical or acyclical. Did the indicator move as the
discussion in Marthinsen (see Exhibit 4-13) suggested? If not, suggest a
reason.

When interpreting the
data, keep in mind that some indicators are computed as a year over year
percentage change. If GDP, for example, drops from a 5% year over
year increase in one year
to zero percent (0%) in the next, then GDP remained unchanged over the two year
period. Similarly, some indicators, such as Savings, are
computed as a percentage
of GDP. If Savings as a percent of GDP showed no change from one year to the
next, but GDP declined, then the Savings declined with GDP.

The paper should be in APA
format. Use an APA style guide such as the Purdue Online Writing Lab. Purdue
OWL also includes an APA sample paper which may be
helpful. Do a search
within the Purdue OWL website for sample APA paper. The paper should not
exceed four pages excluding a title page and reference list and
appendix.

The graph of the economic
indicators should be placed in the body of the paper for easy reference but the
raw data is best suited for an appendix.

Creating an Excel Chart
Using IMF Data

Access the IMF World
Economic Outlook (WEO) database with this path: IMF Home/Data and Statistics
(top menu)/ World Economic Outlook Databases (scroll down to find) /World
Economic Outlook Database (most recent)/Download WEO Data By Countries/then
select the desired country and select the desired metrics in a five step
process. Generate the
report which may then be downloaded in an Excel compatible format. The database
should look like this:

Here is an example of the
report for the United Kingdom.

The data from the IMF
report were then copied and pasted into Excel.
Next, the Excel table was modified by deleting some unneeded columns and
a row was added that computes the budget deficit as a percent of GDP. Here is the result.

Subject Descriptor
Units
Scale
2007
2008
2009
2010
2011
2012
2013
Gross domestic product,
constant prices Total investment
Gross national savings
Unemployment rate
General government
revenue
General government total
expenditure Deficit = revenue – expenditure
Percent change Percent of
GDP
Percent of GDP Percent of
total labor f
Percent of GDP Percent of
GDP
Percent of GDP
3.427 18.195
16.009 5.35
36.964 39.848
– 2.884
-0.769 17.092
16.149 5.725
37.433 42.449
– 5.016
-5.17 14.071
12.656 7.65
35.561 46.818
– 11.257
1.66 15.016
12.323 7.85
36.181 46.155
– 9.974
1.117 14.934
13.471 8.1
36.943 44.729
– 7.786
0.251 14.656
10.925 7.95
36.806 44.768
– 7.962
1.756 14.382
11.045 7.604
37.737 43.536
– 5.799

Finally, the spreadsheet
was modified to a format suited for creating a line graph.
2007
2008
2009
2010
2011
2012
2013
GDP Investment
Savings Unemployment
Deficit
3.427 18.195
16.009 5.35
–
2.884
-0.769 17.092
16.149 5.725
–
5.016
-5.17 14.071
12.656 7.65
–
11.257
1.66 15.016
12.323 7.85
–
9.974
1.117 14.934
13.471 8.1
–
7.786
0.251 14.656
10.925 7.95
–
7.962
1.756 14.382
11.045 7.604
–
5.799

Excel will create a graph
with a few clicks. Select the entire table, then use Insert/Line graph (do not
choose one the stacked graphs as these add each data point to the
previous). Adding a chart
title and moving the X-axis label to the bottom yields this chart:

UK Economic Indicators
20
15
10
GDP
Investment
5
Savings
0
Unemployment
-5
Deficit
-10
-15
2007
2008
2009
2010
2011
2012
2013

If you need help with
creating graphs, Excel has an excellent help feature. Many videos are also available at
YouTube.

PercentMGMT 673 Global Economic AnalysisAssignment
1: The Great RecessionDue DateThis assignment is due by
the end of Module 2.ObjectiveThe global recession that
began in 2008, generally known as the Great Recession, was the worst economic
downturn since the Great Depression of the 1930s. The objectiveof this assignment is a
deeper understanding of the relationship between economic indicators and the
business cycle. You will track several important economic metricsthrough this extraordinary
recession and recovery.DirectionsBegin by choosing a
country of interest from those listed in Marthinsen Appendix 1-1 (Excluding the
United Kingdom as it is provided as an example). Using theInternational Monetary
Funds (IMF) World Economic Outlook database, obtain the following economic
metrics for the years 2007 to the present: 1. Gross DomesticProduct, 2. Investment, 3.
Saving, 4. Inflation, 5. Unemployment rate, and 6. Government debt. Data for
some countries may be incomplete. If so, please chooseanother country.For this assignment, begin
with an introduction explaining the purpose of the paper and the country
chosen. Then, present these metrics graphically so that relationships to thecontraction and subsequent
expansion in GDP are apparent. Detailed guidance on how to create a graph in MS
Excel is provided below. The IMF database allows for severalchoices for the
computation of each metric, so notes to the graph and in raw data should
specify what the metric measures, for example, year over year percentagechange in GDP. Next,
explain how and why each varied during the course of the Great Recession.
Determine whether each indicator (except GDP, which is the measure ofthe recession) is
procyclical, countercyclical or acyclical. Did the indicator move as the
discussion in Marthinsen (see Exhibit 4-13) suggested? If not, suggest a
reason.When interpreting the
data, keep in mind that some indicators are computed as a year over year
percentage change. If GDP, for example, drops from a 5% year overyear increase in one year
to zero percent (0%) in the next, then GDP remained unchanged over the two year
period. Similarly, some indicators, such as Savings, arecomputed as a percentage
of GDP. If Savings as a percent of GDP showed no change from one year to the
next, but GDP declined, then the Savings declined with GDP.The paper should be in APA
format. Use an APA style guide such as the Purdue Online Writing Lab. Purdue
OWL also includes an APA sample paper which may behelpful. Do a search
within the Purdue OWL website for sample APA paper. The paper should not
exceed four pages excluding a title page and reference list andappendix.The graph of the economic
indicators should be placed in the body of the paper for easy reference but the
raw data is best suited for an appendix.Creating an Excel Chart
Using IMF DataAccess the IMF World
Economic Outlook (WEO) database with this path: IMF Home/Data and Statistics
(top menu)/ World Economic Outlook Databases (scroll down to find) /World
Economic Outlook Database (most recent)/Download WEO Data By Countries/then
select the desired country and select the desired metrics in a five stepprocess. Generate the
report which may then be downloaded in an Excel compatible format. The database
should look like this:Here is an example of the
report for the United Kingdom. The data from the IMF
report were then copied and pasted into Excel.
Next, the Excel table was modified by deleting some unneeded columns and
a row was added that computes the budget deficit as a percent of GDP. Here is the result.Subject DescriptorUnitsScale2007200820092010201120122013Gross domestic product,
constant prices Total investmentGross national savings
Unemployment rateGeneral government
revenueGeneral government total
expenditure Deficit = revenue – expenditurePercent change Percent of
GDPPercent of GDP Percent of
total labor fPercent of GDP Percent of
GDPPercent of GDP3.427 18.19516.009 5.3536.964 39.848- 2.884-0.769 17.09216.149 5.72537.433 42.449- 5.016-5.17 14.07112.656 7.6535.561 46.818- 11.2571.66 15.01612.323 7.8536.181 46.155- 9.9741.117 14.93413.471 8.136.943 44.729- 7.7860.251 14.65610.925 7.9536.806 44.768- 7.9621.756 14.38211.045 7.60437.737 43.536- 5.799Finally, the spreadsheet
was modified to a format suited for creating a line graph.2007200820092010201120122013GDP InvestmentSavings UnemploymentDeficit3.427 18.19516.009 5.35-
2.884-0.769 17.09216.149 5.725-
5.016-5.17 14.07112.656 7.65-
11.2571.66 15.01612.323 7.85-
9.9741.117 14.93413.471 8.1-
7.7860.251 14.65610.925 7.95-
7.9621.756 14.38211.045 7.604-
5.799Excel will create a graph
with a few clicks. Select the entire table, then use Insert/Line graph (do not
choose one the stacked graphs as these add each data point to theprevious). Adding a chart
title and moving the X-axis label to the bottom yields this chart:UK Economic Indicators201510GDPInvestment5Savings0Unemployment-5Deficit-10-152007200820092010201120122013If you need help with
creating graphs, Excel has an excellent help feature. Many videos are also available at
YouTube. Percent