MGMT 673 Assignment 1: The Great Recession Revised 1/18 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 accessing the International Monetary Funds (IMF) World Economic Outlook database. Detailed guidance on accessing and downloading the required data is found below under Creating an Excel Chart Using IMF Data. Choose a country of interest. Data are available on 189 countries, but some do not have all of the economic metrics of interest, so limit your choice to countries for which complete data are available (one of the developed countries may be the best choice). Also, do not choose the United Kingdom as it is used in the example. Next, obtain the following economic metrics for the years 2007 through 2013: 1. Gross Domestic Product, constant prices percent change 2. Total investment, percent of GDP 3. Inflation, end of period consumer prices percent change 4. Unemployment rate, percent of total labor force 5. General government revenue, percent of GDP 6. General government total expenditure, percent of GDP Note: You will need to compute the government deficit. See the instructions below. For this assignment, you will write a paper that interprets and explains how the data reflect the Great Recession and the experience of the chosen country. Begin with an introduction summarizing the objective of the paper and the country chosen. Then, present the metrics graphically so that relationships to the contraction and subsequent expansion in GDP are apparent (see the guidance below). Next, explain (a) how each indicator is computed, (b) how and why the indicator is expected to move with recession and expansion, (c) whether the indicator varied as expected during the course of the Great Recession, and (d) whether each metric is procyclical, countercyclical or acyclical with GDP. If the indicator did not move as Marthinsen suggests (see Exhibit 4-9), propose a reason. Conclude the paper with a short summary. The data must be carefully interpreted. Some metrics are computed as a year over year percentage change. For example, if GDP drops 5% year over year with a zero percent (0%) change in the next year, the graph will slope upward in the 2nd year, but GDP is unchanged. Other 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 total Savings declined with GDP. The paper should be in APA format including a cover page, running head, page numbers, headings, citations of sources, a reference listing, and appendices as needed. Use an APA style guide such as the Purdue Online Writing Lab. Purdue OWL also includes an APA sample paper which will be helpful. Do a search within the Purdue OWL website for sample APA paper. The paper should be four to five pages not including the title page, reference list, and any appendices. The graph of the economic indicators should be placed in the body of the paper for easy reference but the raw data are best suited for an appendix. Creating an Excel Chart Using IMF Data
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