For Question-1 and 2, obtain the available data (1981-2019) from Statistics Canada (CANSIM) and plot the aggregate variables of the interest. Then, using the graph, answer the questions:

Questions-1 (25 Points) Plot Nominal GDP, Real GDP (based on 2012 constant prices) and Real GDP per capita between years 1981 - 2018 in the same figure, and comment on both these series.

Questions-2 (25 Points) How much richer was the average Canadian in 2014 than in 1994 (Hint: From National balance sheet account, you need the value of consumer durables (non-financial assets) given in market prices)?

Questions-3 (20 Points) - Macroeconomic data for the country of XYZ for the years 2014 and 2015 are given as

2014

2015

Output

12,000 tons of carrots

14,300 tons of carrots

Employment

1000 workers

1100 workers

Unemployed

100 workers

50 workers

Total Labour force

1100 workers

1150 workers

Prices

2 YTL/ton of carrots

2.5 YTL/ton of carrots

XYZ only produces only carrot, and it uses the YTL as a currency. Calculate each of the following macroeconomic variables for YTL:

a) Average labor productivity in 2014 and 2015.

b) The growth rate of average labor productivity between 2014 and 2015.

c) The unemployment rate in 2017 and 2018.

d) The inflation rate between 2017 and 2018.

Problem 4 (30 Points) Consider the following data on real GDP per capita in Canada:

Year

Per Capita Real GDP

1950

14 339

1960

17 351

1970

23 790

1980

30 732

1990

35 868

2000

43 288

2010

46 406

2011

47 554

2012

47 741

2013

48 066

2014

48 780

a) Calculate the percentage growth rates in real GDP per capita in each of the years 2011 through 2014, from the previous year.

b) Now, instead of calculating the annual percentage growth rates in the years 2011 through 2014 directly, use as an approximation (Natural Logarithm) How close does this approximation come to the actual growth rates you calculated in part (a)?