This question involves collecting data from national statistics agencies (e.g. the UK Office for National Statistics) and/or international organizations (e.g. the OECD or the IMF). First, select an emerging and a developed economy.

(a) Collect annual data on real GDP as far back as it is available for both countries. Convert the data to the log scale and plot on a graph. Comment on your findings. Calculate the growth rates of GDP for the two countries over the period and plot them on a graph. How do the business cycles of the two countries compare? To what extent do they appear synchronized?

(b) Collect current price data on GDP and its components for the two countries. Calculate the percentage of GDP according to each of the four main types of expenditure-i.e. household consumption, government consumption, gross fixed capital formation and net exports (i.e. exports minus imports) and plot the series. How does the composition of GDP and changes over time in the two countries compare? Discuss possible reasons for the differences.