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ASSIGNMENT 3
ECO 2164B
Submission Deadline: April 10, 23:59 PM (EST)
Instructions: Upload a PDF and the supporting Excel file to OWL only. Your responses should be written
following a Question-Response format and following the order of questions in the assignment. On the top of each
page, please indicate your name and student number. The Excel files should contain the charts, relevant data,
and links to the data sources – one chart per separate tab in Excel. The assignment is not a group submission,
only individual submissions will be accepted.
Context: Consider a hypothetical situation at work. To prepare for an upcoming bilateral meeting with
government representatives of another country, your manager asks your unit to conduct an economic analysis of
the Canadian economy, summarizing any recent findings about financial flows and trade between the two
countries. As part of the binder to be prepared for this meeting, your study focuses on the Canadian macroeconomy
and capital flows before and after 2020.
You can use background material and data from the IMF Database used for Assignment 2, the source in
attachment, or any other data sources, i.e. StatsCan, as long as it is properly cited and referenced in your original
work. See the list of additional data sources on page 2.
Items of this analysis include:
- Data analysis: Analysis of the immediate effect of the pandemic since March 2020 on:
BOP item: Current Account as share of GDP (IMF Variable codes: BCA_NGDPD
Economic Activity item: Nominal GDP, USD bn (IMF variable code: NGDPD)
Government spending item: Government revenues as share of GDP (IMF variable code:
GGR_NGDP)
Note: Add figures to each of the macroeconomic indicators listed above using Excel and the IMF database
for years 2015 – 2025 and comment on the observed trends / projections before and after 2020. The Current
Account figure from Assignment 2 can be also used. - Model analysis: The pandemic has led to a sudden decline (contraction) in demand and economic activity.
Use one of the main models covered in class (your choice) to describe the effect of such contraction(s) on
macroeconomic variables in the model framework of your choice:
• In the short run (if applicable), and / or
• In the long run (if applicable)
Note: Use figures for the model and comment on any curve shifts from one point to another one when
using a given figure. Be specific and provide details about the variables‘interactions / effects as well as
the model predictions. - Key Takeaways: Given the analysis you have conducted, provide a concise summary of the findings in items
1-2 using max. four / five bullet points. In your last bullet point, comment on whether international trade and
financial flows of Canada with other countries would be significantly affected by the pandemic in the short
and medium term?
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Selected list of references:
• The UWO library provides access to various macro and financial data and economic reports in the
Business Databases: https://www.lib.uwo.ca/busine… A detailed overview can be
found here:
• UWO access to newspapers and other media:
https://www.lib.uwo.ca/busine…
• Statistics Canada is the national statistical office and provides key information on Canada’s economy:
https://www.statcan.gc.ca/eng…
• Other databases: BMI Research (access via UWO Library) and International Monetary Fund’s most
recent World Economic Outlook database (accessible directly).