BEA111 Introduction to Markets and the Ecoromy Assignment 2 Questicn 1 - (Total: 35 Marks) The attached Excel file, GDP Data, provides the Australian Nominal and Real Quarterly GDP figures for Mar 2015 to Dec 2023 {values are in millions of dollars). Use the GDP data to answer the following questions. (i) Create a table like Table 1.1 and calculate the four measures from March 2016 to December 2023. Nominal GDP Nominal GDP Real GDP Real GDP Annual Growth Quarterly Annual Quarterly Table 1.1 Rate (%) Growth Rate Growth Rate Growth Rate (%) (%) (%) Please take note to measure the . quarterly growth rate: you need to take the difference from one quarter to another. For example, the quarterly growth rate for March 2016 = {Mar 2016 value Dec 2015 value) X 100/Dec 2015 value annual growth rate, you need to take the difference from one year to another. For example, the annual growth rate for March 2016 = (Mar 2016 value Mar 2015 value) X 100/Mar 2015 value Why does the real GDP growth rate differ from the nominal growth rate? Referring to the real GDP growth rate [quarterly and annual) that you reparted in the above table, what can you say about the Australian economic outlook during the pre-, during and post-COVID-19 era? Where will you place the Australian economy on the business cycle for each of these periods? (Total Marks: 15) Create a table like Table 1.2 and calculate the GDP deflator and the quarterly and annual changes inthe price level from March 2016 to December 2023. The formula for quarterly and annual change is similar to the one described in (i) GDP Deflator Percentage Percentage Change Change {Quarterly) {Annual) Table 1.2 What is a GDP deflator? Which period saw the lowest and highest percentage increase in the price |level as measured by the GDP deflator? Explain your answer. (Hint: compare the guarterly measure and annual measure). (Total Marks: 10) The GDP is commonly used to measure a country's economic progress and standard of living. Read the article A Brief Histary of GOP - and what could come next and explain why GDP has its limitations and what nations should concentrate on to go beyond the GDP measures to sustain their population's well- being and welfare. (Total Marks: 10) Excel File Edit View Insert Format Tools Data Window Help ? )64% Tue 7:59 pm Q DE Australian GDP Data_updated Q Search Sheet Home Insert Page Layout Formulas Data Review View + Share Cut _ AutoSum . Calibri 12 A- A Wrap Text General Ag. Copy Fill Paste A Merge & Center $ % 2 70 -00 Conditional Format Cell Insert Delete Format Sort & Format Formatting as Table Styles Clear Filter Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates Check for Updates K17 + X V fx A B C D E F G H I J K L M N O P Q R S T Gross domestic Gross domestic product: product: Chain Current prices ; volume measures ; $ Millions $ Millions Seasonally Adjusted Seasonally Adjusted DERIVED DERIVED Quarter Quarter 3 Sep-1959 Sep-1959 Dec-2023 Dec-2023 258 258 A2304418T A2304402X Mar-2015 408390 499782 Jun-2015 107465 500400 Sep-2015 412095 505490 Dec-2015 412371 508467 16 Mar-2016 414883 513160 Jun-2016 419659 516563 Sep-2016 425186 516774 Dec-2016 439281 522419 Mar-2017 447473 524318 Jun-2017 447235 527555 Sep-2017 452803 532398 Dec-2017 455645 534716 Mar-2018 464857 540342 Jun-2018 470891 544385 Sep-2018 477963 546658 Dec-2018 483122 547971 28 Mar-2019 490369 551182 Sheet1 + + Ready 113% MAY 21 EOExcel File Edit View Insert Format Tools Data Window Help ? ) 64% Tue 7:59 pm Q DE Australian GDP Data_updated Q Search Sheet Home Insert Page Layout Formulas Data Review View + Share Cut 14#1 _ AutoSum . Calibri 12 A- A Wrap Text General Ag. Copy Fill Paste Merge & Center $ ~ % 2 70 -00 Conditional Format Cell Insert Delete Format Sort & Format Formatting as Table Styles Clear Filter Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates Check for Updates K17 + XV fx A B C D E F G H I J K L M N O P Q R S T 25 Jun-2018 470891 544385 26 Sep-2018 477963 546658 27 Dec-2018 483122 547971 28 Mar-2019 190369 551182 29 Jun-2019 497677 552964 30 Sep-2019 504456 556075 Dec-2019 503695 558694 Mar-2020 506317 557636 Jun-2020 468773 519011 Sep-2020 489541 538336 Dec-2020 512276 556689 Mar-2021 34518 568773 Jun-2021 652353 573897 Sep-2021 549822 563136 Dec-2021 568474 586480 Mar-2022 594996 589416 Jun-2022 622231 594189 Sep-2022 27597 595580 Dec-2022 37241 600452 Mar-2023 651596 603969 Jun-2023 646972 606725 Sep-2023 656059 608293 Dec-2023 665426 609750 49 Note: The data for are extracted from ABS Cat No 5206.0 54 Sheet1 + - + Ready 113% MAY 21 EO