Data collection, analysis, presentation, and analysis. Greece’s current economic crisis has made headlines recently as it appeared likely to default.

You will collect, present, analyze, and report on economic data for Australia (Germany), Greece, or another Asian country.

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Under Data, collect and present data annually using The World Bank’s website.

You can present the data in tables at first.

You decide how many tables or countries you will use.

Each table must be numberable and have a clear title/heading indicating its contents and a reference for the source data.

To create the following graphs, use the Excel graphing tool (line graphics) to extract the data.

Indicate below each graph the table/s from which data came.

Label each axis with a variable and give your graph title.

Answer to Question: BEO1105 Economic Principles

Question 1

Table 1: GDP Per Capita (constant 2010 US$).200520062007200820092010201120122013201420152016Australia48702.73549418.68650952.46751788.44051651.22351874.08052372.15553348.38953798.35954394.33454941.91155670.924Germany38969.32240456.85741831.86742365.09740086.10541785.55744125.33144259.26044354.73744874.88145253.59645551.514Greece27698.51129176.39330054.88929874.74328514.81026917.75924495.71122830.52722251.25722479.00922578.01522736.455Singapore40020.26042223.89144191.23842650.10241133.30046569.68048447.68149103.70950731.29751865.71852244.58652600.641

Source: World Bank

Table 2: Australia’s GDP growth, Inflation rate and Unemployment rates200520062007200820092010201120122013201420152016

GDP growth (annual %)3.2042.9783.7503.6981.8122.0062.3733.6342.5702.6092.4222.766

Inflation rate3.7095.0654.9764.5364.9251.0106.1842.055-0.1671.439-0.702-0.414

Unemployment rate5.0334.7824.3774.2345.5615.2115.0815.2215.6566.0746.065.738

Source: World Bank

Table 3: Germany’s GDP growth, Inflation and Unemployment rates200520062007200820092010201120122013201420152016

GDP growth (annual%)0.7073.7003.2611.082-5.6194.0803.6600.4920.4901.5951.7211.867



Source: World Bank

Table 4: Greece’s GDP Growth, Inflation and Unemployment Rates200520062007200820092010201120122013201420152016

Annual GDP growth0.5995.6523.274-0.335-4.301-5.479-9.132-7.300-3.2410.353-0.2190.012



Source: World Bank

Table 5: Singapore’s GDP growth, Inflation rate and Unemployment rates200520062007200820092010201120122013201420152016

GDP growth (annual%)7.4898.8609.1121.788-0.60315.2406.2243.8715.0013.5721.9331.996



Source: World Bank

Question Two

Economic Analysis

Graph 1 shows Australia’s economic outlook for 2005-2016

Source: Table two

GDP Growth and Unemployment Rate

Okun’s law says that Australia’s Gross Domestic Products and Unemployment Rates are in line. There is a negative correlation (Arnold (2013)).

Australia’s unemployment rate was declining between 2005 and 2008.

In 2005, the unemployment rate was 5.03% and 4.54% respectively in 2008.

The gross domestic product grew by 3.20% from 2005 to 2008. (World Bank, 2017).

Similar trends were seen in 2010 to 2011, 2015 to 2016, and 2016.

On the other side, unemployment was high in 2009-2013, 2014 and 2015.

In these financial years, Australia’s economy was slowing down.

This indicates the importance that employment plays in economic growth.

Low unemployment means that there is a high employment rate.

In other words, more people will be employed which means that there will be an increase in consumption and investments. This will lead to growth in aggregate demand, and thus a higher real Gross Domestic Product. (Sloman & Wride, 2015).

Between 2005 and 2016, Australia experienced 1.81% of the lowest economic growth.

This low growth was caused in part by the Global Financial Crisis 2008-2009.

The global financial crisis of 2008-2009 caused a decline and rise in aggregate demand. This resulted also in an increase in unemployment, and a slower rate of economic growth.

Inflation and GDP growth

Inflation and GDP growth showed positive correlations in some years. However, they did not always move in the same direction in others years.

In 2013, the economic growth was 2.57%, as opposed to 3.63% growth in 2012.

Similar to 2012, 2013 saw an economic growth of 2.57%, compared with 3.63% in 2012. Inflation was also -0.17% as compared to 2.06% in 2012.

This scenario shows that a decrease or decline in real GDP is accompanied by a decrease on aggregate demand.

However, inflation rose as the economy slowed down in 2009.

This correlation can also be attributed to Australia’s fiscal and monetary expansions during the Global Financial Crisis.

These expansionary policies resulted in higher inflation due to increased money circulation.

Unemployment and Inflation

There is a tradeoff between inflation rate and unemployment rate.

Inflation falls when unemployment increases, and it rises when unemployment decreases.

In 2005, there was a 5.03% unemployment rate and a 3.71% inflation rate.

However, inflation was much higher in 2011, at 6.18%. Unemployment was low at 5.08% in 2011. (The World Bank, 2017).

This is due to government policies for stabilizing and reducing unemployment.

If the government is trying to reduce unemployment, they use expansionary economic policy.

These policies increase demand and lead to increased economic growth.

Inflation occurs when there is insufficient supply to meet rising demand.

Additionally, contractionary policies that are meant to reduce inflation often result in a rise unemployment (Goodwin Nelson & Harris (2014)).

Graph 2 shows Germany’s economic outlook for 2005-2016

Source: Table three

Unemployment and GDP Growth

While the economy has been experiencing slowdown, the unemployment rate in Germany has been falling between 2005 and 2016.

Following an increase in economic activity of 3.70%, which was 0.71% in 2005, the unemployment rate in Germany fell to 10.25%. Similar trends were also observed in 2010 and 2010.

This indicates that an increase in productivity accelerates job creation.

Despite Germany’s recession in 2009, unemployment did not rise during the Global Financial Crisis.

Inflation and GDP growth

Germany has had a relatively low level of inflation in the last decade.

The relationship between inflation growth and GDP growth varied across years.

In 2006, Germany’s economic growth was greater than the decline in inflation.

You can argue that this economic expansion was caused by an increase in aggregate consumption.

It could have been caused by supply-side factors such as technology improvements and higher labor productivity.

However, in 2008, the Gross Domestic product declined and inflation fell.

It is clear that the declines in GDP were due to lower aggregate demand. Inflation also fell in 2008, as a result.

Unemployment and inflation

From 2005 to 2016, unemployment was higher than inflation.

However, this country also has a declining unemployment rate.

Low oil prices have contributed to Germany’s low inflation (BBC (2015)).

Low oil prices have led to lower production costs.

As a consequence, the aggregate supply has increased leading to a reduction in general prices, an increase of the real Gross domestic Product and a rise the employment rate.

Graph 3. Greece’s economic outlook for 2005-2016

Source: Table Four

Unemployment and GDP Growth

In Greece, the unemployment rate has increased as the Gross Domestic product has been decreasing.

The Great Depression of 2009 saw unemployment begin to rise and it reached its peak of 27.47% in 2013.

Greece’s current economic problems can be attributed largely to its high external debt which has negatively affected its credit worthiness, scaring investors, and caused a decline in investment confidence.

Due to this, the economic growth and aggregate demand have declined due to low investment and consumption.

Inflation and GDP growth

Due to the decline in GDP growth, inflation has been very low and some years even deflation.

Greece’s debt payment has resulted in substantial funds being used to pay off its debts. This means that the country has not had sufficient financial resources to support investment and consumption.

This has led to a reduction in aggregate demand, which has resulted in a decline of general prices and economic contraction.

Inflation and unemployment

At the time of the 2008 Global Financial Crisis, unemployment began rising and inflation started falling.

This was due to insufficient aggregate consumption.

If the economy’s total demand falls, it will cause a decrease in Gross Domestic Product as well as a decrease in price levels.

Additionally, when there is low demand for products companies will scale back production (Boyes & Melvin 2012.

Therefore, unemployment rises as the demand for labor decreases.

Sometimes, companies will fire employees.

Graph 4 shows Singapore’s economic outlook for 2005-2016

Source: Table 5.

GDP Growth and Unemployment Rate

An increase in Singapore’s GDP means a decline in the level of unemployment.

In 2006, for example, the GDP grew by 8.86%, as opposed to 7.49%.

The increase in Gross domestic product led to unemployment falling to 4.48% (from 5.59%) during the same period.

The World Bank, 2017, also shows that unemployment rose to 4.30% after the country’s economic downturn in 2009.

So, the GDP expansion plays a major role in Singapore’s employment creation.

Inflation and GDP growth

Singapore is seeing low levels of inflation, and even deflation in the last few financial years.

The country has experienced remarkable economic growth, even with deflation.

Singapore’s economy increased by 15.24% in 2010, while inflation was at -0.05%.

This trend indicates that the increase in GDP could be due to supply factors such as an improvement in labor productivity or technological development.

Singapore has had a moderate increase in its GDP in recent years.

Study by the LEE (2015) shows that Singapore’s slow growth has been due to low inflation levels and deflation.

Unemployment and inflation

In Singapore there is a negative correlation in unemployment and inflation.

Low inflation means high unemployment. Higher inflation results in lower unemployment.

Inflation in 2005 was 2.23%, while unemployment was 5.59%.

In the same way, 2016 saw 1.83% unemployment and -1.44% inflation.

This relationship shows that high unemployment is caused by a country trying to reduce it. Inflation will also rise when it tries to target it.

Graph 5 Comparison

Source: Table two to five

Global Financial Crisis (GFC), Impact on

These economies had different experiences during the Global Financial Crisis of 2008/2009.

Australia, despite its economy not entering recession, did the best of all four.

This country saw a decrease in economic growth. The decline was from 3.70% of 2008 to 1.81% 2009

Germany, Singapore, Greece, and Greece fell into recession. The magnitude of the contraction varied.

Germany’s economy contracted to 5.622%, Singapore -0.60% and Greece -4.30.

Furthermore, the level of unemployment during 2009’s Great Depression was very different from country-to-country.

In Greece, the highest level was 9.62% and in Singapore it was 4.3%.

Global Financial Crisis: Recovery

The economic outlook of each country shows that the recovery from the Great Depression 2009 has been uneven.

Singapore was an example of a country that has shown remarkable recovery rates. It saw a phenomenal 15.24% increase in economic activity between 2010 and 2017. (The World Bank, 2017).

Australia and Germany both did well after the crisis.

However, Greece still hasn’t recovered from the Global Financial Crisis.

Five times, Greece’s economy has fallen into recession since 2009.

There was an improvement in the GDP growth between 2015 and 2016.

The GDP growth of all these countries has increased in recent years, namely 2015 and 2016.

Australia’s GDP increased by 2.42%-2.77%, Germany, 1.72%-1.87%, Greece, -0.22%, Singapore, 1.93%, and 2.00% (The World Bank 2017, 2017).

Question 3

Graph 6 Data from the OECD

Graph 7 shows the Living Standards

Money cannot buy happiness but it does contribute to higher living standards, and thus greater well-being.

Australians have a higher disposable income, which allows them access to quality housing and education.

The GDP per head of Australia surpasses that of Germany (The World bank 2017, 2017).

This indicates that Australians enjoy higher living standards, and therefore greater satisfaction.Quality Support Network

The well-being and happiness of individuals is dependent upon good personal relationships.

The ability to access the emotional support required for a better existence is possible through active community and social networks.

Study by the OECD 2017 shows that 95% Australians can rely on others for support and this contributes to life satisfaction.

Education is crucial for economic and social progress.

Education provides individuals with the skills and knowledge needed to be productive members of society.

Australia’s education attainment is 77.1%, meaning that most Australians have the opportunity to access education (OECD (2017)).

This means that they have income-generating jobs available to them.

The environment’s quality can have a significant impact on our well-being, and even our health.

Polluted environments can cause serious health problems.

Australia is ranked 1 out of 38 when it comes to pollution.

94% Australians also have access to clean drinking water and high levels of satisfaction.

Similar to Australia, Germany’s GDP per head is on the rise.

This situation shows that living standards in this country are increasing.

People with higher incomes can access better healthcare, education, housing and other services.

Germany also offers policies to help low-income people.

In Germany 92% of individuals have someone to rely when they need it (OECD (2017)

Social networks are real and can provide the support needed to improve one’s well-being.

It is important to have life satisfaction because of the programs that help immigrants integrate into the community.

High Education Attainment

The 86.9% average educational attainment rate in Germany shows that a significant proportion of the population has access (OECD, 2017).

Education plays a crucial role in eliminating the inequality in society.

People are employed when others start their own ventures, thus reducing poverty.Better Health

Germany has a high life expectancy of 81 year (OECD (2017)).

This situation shows that the leadership of Germany has established mechanisms to ensure that citizens have better access to health.

Health is an important factor in life satisfaction.

Greece has a low level of life satisfaction.

Low income is one reason for this low rate.

The GDP per capita has been falling since the Global Financial Crisis.

As a result, dissatisfaction has set in and the standard of living has declined.Support Network

Greece’s quality support network ratio is 83.4%. This is below the OECD average rate of 88% (OECD (2017)).

This indicates weak social networks and can result in a reduced economic opportunity, lack of emotional support or isolation.Environment

Environmental pollution can also be a factor in low life satisfaction scores in Greece.

It is a country with high levels of pollution. The majority of people in the country don’t have clean water.

The health effects of high levels of pollution are known to be detrimental to people’s well-being.Education Attainment

Education is critical for economic and social growth in a country.

Greece’s education attainment level is 68.3% (OECD – 2017). This is well below the OECD standard for 76%.

Low education levels are limiting the ability of the population of Greece to obtain employment for their care and low life satisfaction.BibliographyArnold, R. A. (2013). Economics. Mason, Ohio: South-Western.

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Mason, OH : South Western.Goodwin, N. R., Nelson, J. A., & Harris, J. (2014).

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GDP growth (annual%). Retrieved September 13th, 2017, from The World Bank:

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