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In the essay/report, you are required to examine the impact of one major fiscal or monetary policy on the aggregate economy for a particular country . In examining the issue, you are expected to make use of the aggregate demand theory and policy . You are also expected to use real Macroeconomic data (from World Bank Statistics). Therefore, in writing the essay/report you are highly recommended to make use of graphs and the relevant theory, as you deem necessary in establishing your arguments in the essay/report.

You are responsible for examining the impact of monetary policy on the aggregate economy of Canada, and you are expected to write a brief report (not exceeding 2500 words) on the impact of such policy reform on the aggregate economy in country . While it is expected that you will make use of the macroeconomic history of Canada and the national income data of country , it is essential that you discuss how the policy reforms have affected the key components of aggregate demand in country . Your report must be based on at least 10 observations over time (i.e. at least 10 years of data for an annual analysis). In your report, you are only required to relate aggregate demand theory to the policy reforms and their impact on the aggregate economy of Canada. You should not
only discuss the effect of domestic policy on the economy. You are also expected to provide some recommendations for the relevant policy of country.

¬ If there are a big shocks what policies were undertaken after to boost GDP (fiscal/monetary policy only).¬How policy affected components of Aggregate Demand ?and GDP? ¬ and you explain if there were any shocks find what policy was used to stabilise and impacts of policy (history facts-what have cause shocked and what policy was used to stabilise the economy)
-You have to specify what exactly type of policies( not in general)
Additional Tips on how to collect data
-Conduct a detailed study of the recent history (e.g. minimum 10 years) of
fiscal and/or monetary policy reforms in that country.
– Collect the relevant data for that country from World Bank Statistics
-Graphs should be in Appendix,you need to take nominal variables , Meta data should be recorded ( 0 will be given without it) ,box in the appendix explaining meta data
You have to collect:
¬ -GDP current (only current terms)
¬ -GDR deflator (index)
¬ -Household/private consumption expenditure (current LCU) = Consumption
¬ -Government expenditure(current LCU) = Goverment
¬ -Gross fixed capital formation (current) + Changes in inventory (current) = Investment
¬ -If you want to: Exports and Imports (both current )
¬ -Consumer price index (index)
¬ Depending on policy: monetary interest rate…and other

-Data processing: techniques should be discussed in the appendix (formulas)

Real GDP: GDP current/ GDP deflator
Real C : C current/CPI
Real G: G current/Deflator
Real I: I current/ deflator
Real X: X current/ deflator
Real M: M current/deflator
15 years=14 years growth
Real Growth rates Y= (Yt+1- Yt) / Yt *100 = growth in percentage
Inflation- (CPI t+1- CPIt) / CPIt *100

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