Find the below questions for Finland.

You may use the FRED, the World Development Indicators (WDI) database by the World Bank, OR the OECD. Stat database to respond to the following questions.

1) Generate a graph for Finland, showing how its real GDP (in level, US$) has evolved since the initial year with available data (usually in 1960s or 1970s).

2) Add a measure for physical capital, human capital, and labor productivity and explain which one has been the main contributor of growth? Give your reasoning.

3) How many recessions has Finland economy undergone over the years plotted in the chart? Explain how you identified the recessions (a popular method for identifying a recession is when there is at least two consecutive quarters of negative growth in GDP, but you are free to use other methods as long as you clearly explain and provide the source for definition). You may also generate a graph for real GDP growth rates, if that helps you with your demonstration.

4) What are the two biggest recessions in terms of length and magnitude?

5) Plot the unemployment rate for the same period (for ex., for 1960-2017).

6) How does the unemployment rate react during the two main recessions you have identified?

7) What do you conclude about the link between recession and the variation in unemployment?

8) Plot the CPI inflation rate for the same period (for ex., for 1960-2017).

9) Identify the periods of deflation and hyper-inflation over the period. What threshold are you using for the hyperinflation rate? (note: you may have to do a little research to determine how economists determine deflation)

10) Explain how CPI is calculated for Finland. Laspeyres, Paasche, or Fisher method?

Answer rating: 100% (QA)

Question Responses for Finlands Economy Analysis Evolution of Real GDP in Finland To generate a graph showing Finlands real GDP evolution since the in... View the full answer