Intermediate macroeconomics
ECS2730 ASSIGNMENT
Question one
a) Different sources had varying figures in terms of acquiring the macroeconomic variables.
b) The following graph show the GDP growth rate, GDP per capita growth rate and the inflation rate of Nigeria.
From the graph it is not easy to see the changes (in terms of figures) in the variables therefore, the table below shows how the above variables have changed over time.
Year
Real GDP growth rate (annual %)
GDP per capita growth (annual %)
Inflation rate (annual %)
Lending interest rate/nominal interest rate (%)
1990
12.8
9.9
7.4
25.3
1991
-0.6
-3.1
13.0
20.0
1992
0.4
-2.1
44.6
24.8
1993
2.1
-0.4
57.2
31.7
1994
0.9
-1.6
57.0
20.5
1995
-0.3
-2.8
72.8
20.2
1996
5.0
2.4
29.3
19.8
1997
2.8
0.3
8.5
17.8
1998
2.7
0.2
10.0
18.2
1999
0.5
-2.0
6.6
20.3
2000
5.3
2.7
6.9
21.3
2001
4.4
1.8
18.9
23.4
2002
3.8
1.2
12.9
24.8
2003
10.4
7.6
14.0
20.7
2004
33.7
30.3
15.0
19.2
2005
3.4
0.8
17.9
17.9
2006
8.2
5.4
8.2
16.9
2007
6.8
4.0
5.4
16.9
2008
6.3
3.4
11.6
15.5
2009
6.9
4.1
11.5
18.4
2010
7.8
4.9
13.7
17.6
2011
6.8
3.9
10.8
16.0
2012
6.5
3.6
12.2
16.8
Annual Real GDP growth rate
In 1990 the real GDP growth rate was fairly high but in the following years it decreased and increased only slightly through the years until 2004 where there was a large increase in the growth rate of GDP. In 2005 the growth rate declined sharply and fluctuated steadily until 2012. The GDP is based on the spending patterns from 1990.
GDP per capita growth rate
The GDP per capita growth rate moved similar to the GDP the difference is in the figures.
Inflation rate
From 1990 the inflation rate increased by more each year up to 1994 when it decreased slightly and rose sharply thereafter (1995). It then decreased in 1996 and began to fluctuate in the years that follow until 2012.
Lending interest rate (nominal interest rate)
The
Question one
a) Different sources had varying figures in terms of acquiring the macroeconomic variables.
b) The following graph show the GDP growth rate, GDP per capita growth rate and the inflation rate of Nigeria.
From the graph it is not easy to see the changes (in terms of figures) in the variables therefore, the table below shows how the above variables have changed over time.
Year
Real GDP growth rate (annual %)
GDP per capita growth (annual %)
Inflation rate (annual %)
Lending interest rate/nominal interest rate (%)
1990
12.8
9.9
7.4
25.3
1991
-0.6
-3.1
13.0
20.0
1992
0.4
-2.1
44.6
24.8
1993
2.1
-0.4
57.2
31.7
1994
0.9
-1.6
57.0
20.5
1995
-0.3
-2.8
72.8
20.2
1996
5.0
2.4
29.3
19.8
1997
2.8
0.3
8.5
17.8
1998
2.7
0.2
10.0
18.2
1999
0.5
-2.0
6.6
20.3
2000
5.3
2.7
6.9
21.3
2001
4.4
1.8
18.9
23.4
2002
3.8
1.2
12.9
24.8
2003
10.4
7.6
14.0
20.7
2004
33.7
30.3
15.0
19.2
2005
3.4
0.8
17.9
17.9
2006
8.2
5.4
8.2
16.9
2007
6.8
4.0
5.4
16.9
2008
6.3
3.4
11.6
15.5
2009
6.9
4.1
11.5
18.4
2010
7.8
4.9
13.7
17.6
2011
6.8
3.9
10.8
16.0
2012
6.5
3.6
12.2
16.8
Annual Real GDP growth rate
In 1990 the real GDP growth rate was fairly high but in the following years it decreased and increased only slightly through the years until 2004 where there was a large increase in the growth rate of GDP. In 2005 the growth rate declined sharply and fluctuated steadily until 2012. The GDP is based on the spending patterns from 1990.
GDP per capita growth rate
The GDP per capita growth rate moved similar to the GDP the difference is in the figures.
Inflation rate
From 1990 the inflation rate increased by more each year up to 1994 when it decreased slightly and rose sharply thereafter (1995). It then decreased in 1996 and began to fluctuate in the years that follow until 2012.
Lending interest rate (nominal interest rate)
The
References: Ball, L., & Mankiw, G. N. (1995). WHATDO BUDGET DEnCrrS DO? NBER WORKING PAPER SERIES, 2-38. Central Bank Nigeria. (2011, march 1). Data and Statistics. Retrieved from Central bank of Nigeria website: http://www.cenbank.org/Rates/ Central Intelligence agency. (2013, January 1). The world factbook. Retrieved from Central intelligence agency: https://www.cia.gov/library/publications/the-world-factbook/geos/ni.html Index mundi. (2011, January 1). Index mundi unemployment rate. Retrieved from Index mundi: http://www.indexmundi.com/g/g.aspx?v=74&c=as&l=en Reserve bank of Australia. (2013, January 1). statistics. Retrieved from Reserve Bank Australia: http://www.rba.gov.au/ The world bank. (2011, January 1). World Bank Open Data. Retrieved from World bank website: http://data.worldbank.org/