For this question read the textbook about the great recession
Question 3Hint: For this question read the textbook about the great recession (a.k.a the GFC) on page 135 and page 308-309 of the textbook. Page 304 to 305 of the textbook provides some information for Australia Each student is assigned a country. Country is China. text book is Macro economics (Australia in the global environment) Parkin Blade -pearsonGo to the following website: http://www.google.com/publicdata/explore?This data is sourced from the IMF’s World Economic outlook. Find data for the country you have been assigned to– see mark centre for more information.Select “national accounts” and choose “GDP, constant prices, % change”, This is real GDP. Select your country from the list and also select Australia. Choose the years 2004 to 2016 using the ruler at the bottom of the page. Use “print screen” to copy and paste them into your assignment documentRepeat the same exercise to create a second graph for the unemployment rate – see “People” and “Unemployment rate %”Repeat the same exercise to create a third graph for inflation – see “Money” -> “Inflation, average consumer prices (%):Question 3A (6 marks)Use the information from the graphs above and your own research to draw a AD-AS diagram for the country you have been assigned toandAustralia at three points in time: 2005, 2007 and 2012.The AD-AS should clearly show the price level, Real GDP and unemployment rate. Clearly identify either a Recessionary gap, inflationary or the long run equilibrium at the each time point.Briefly explain what evidence you have used to justify your graph. You may use any information from credible sources (wikipedia and similar websites are NOT credible). We highly recommend using the IMF’s World Economic outlook reports from 2004 to 2012 found here:http://www.imf.org/external/ns/cs.aspx?Question 3B (2 marks)For the country you have been assigned to (not Australia), do research and explain what happened in the economy between 2005-2007 and 2007-2012. Show how these changes took place by shifting the appropriate lines in a AD-AS diagram.Question 3C (2 marks)Based on both research and the above figures, briefly discuss whether the country you have been assigned to and Australia was hurt more by the GFC in terms of changes in real GDP and unemployment.
