Macroeconomic Assignment Brief 2026 | University of Galway

Macroeconomic Assignment Brief

Objective

The objective of the assignment is to evaluate the applicability of the theoretical concepts covered in the first part of the course—specifically Topics 1, 2, 3, 4, and 5—using real-world data. The assignment aims to bridge the gap between theoretical knowledge and practical application, and to enable you to create the same types of graphs demonstrated in the first part of the module.

Your Tasks

1. Select a Country: From the provided datasets, choose a country for your analysis. It is important to note that not every country in the datasets has complete data for every year. Additionally, for each country, there may be missing data points for key indicators such as GDP, inflation, and unemployment. It is your responsibility to carefully review the datasets and select a country that has no missing data for the time period and variables relevant to your analysis.

2. Define a Time Period: Select a continuous time period of at least 10 years for your analysis (e.g., 1980–1990, 1990–2000, 1995–2005, etc.). You may choose a longer time frame (e.g., 1993–2023). If your analysis involves computing:
   • percentage changes in real GDP, or
   • changes in the unemployment rate,
   you must include data from the year prior to your selected period in order to calculate the first year-on-year change correctly.

   Example: If you choose 1995–2005, you must also include 1994. The change in unemployment for 1995 is computed as: ∆u1995 = u1995 − u1994. Repeat this process for each subsequent year.

3. Real GDP Growth Rate and Unemployment Rate: Referencing the example from Topic 1, plot the real GDP growth rate and the unemployment rate for your selected country and time period on the same graph. Analyse whether the unemployment rate inversely mirrors the real GDP growth rate (i.e., unemployment rises when real GDP growth falls, and vice versa). Write a brief note discussing your observations.

4. Real GDP Growth Rate and Inflation Rate: Plot the real GDP growth rate and the inflation rate for your selected country and time period on the same graph. Examine whether inflation tends to decrease during downturns (negative real GDP growth) and increase during expansions. You may use the provided inflation data or compute inflation using the GDP deflator. Provide a brief commentary on your findings.

5. Inflation Rates (CPI vs. GDP Deflator): Plot inflation rates computed using both:
   • CPI inflation (provided), and
   • inflation computed from the GDP deflator.

   Since the main dataset includes nominal GDP, real GDP, and CPI inflation, you must:
   (a) compute the GDP deflator, and
   (b) compute inflation from the GDP deflator.

   Compare the two measures and discuss whether they provide similar insights. If they differ, explain why (think about what CPI vs. the GDP deflator captures).

6. Okun’s Law: Create a scatterplot illustrating Okun’s Law by plotting:
   • changes in the unemployment rate, and
   • real GDP growth.

   Analyse the relationship and explain whether Okun’s Law appears to hold for your selected country and time period.

7. Phillips Curve: Create a scatterplot illustrating the Phillips Curve by plotting:
   • inflation rate, and
   • unemployment rate.

   You may use CPI inflation or inflation computed from the GDP deflator. Discuss whether you observe a Phillips Curve relationship and provide a brief analysis.

Submission

To facilitate submission, an “Assignment” has been set up on the module page.

Submission Guidelines

1. When the submission window opens, go to the “Assignment” on and use the “Assignment Submission” link.

2. Your complete assignment must be submitted in one single Microsoft Excel file. This file must include all workings, graphs, discussions, and any other required elements. Submitting multiple files (e.g., separate files for each graph) will not be accepted.

3. It is mandatory that your calculations are performed using Excel formulas. I will verify this by inspecting the formulas in the formula bar. Failure to use Excel formulas will result in a score of zero.

4. File naming convention (mandatory): CountrySelected_TimePeriodSelected_. Failure to follow this convention will incur a heavy penalty.

Evaluation Criteria

Your assignment will be evaluated based on:

1. Accuracy of Data Analysis: Correct calculations and precise data analysis. All calculations must be done using Excel formulas.

2. Clarity of Graphs: Graphs must be clearly labelled with appropriate titles and axis labels.

3. Discussion: Each graph must include a discussion evaluating whether the theory and models taught in the course are reflected in the data.

4. Adherence to Instructions: You must follow the tasks exactly and use the template shown in the instructional videos.

5. Country Selection Rule: You may choose any country except the United States. Selecting the United States will result in a score of zero.

Resources

A range of resources is available in the “Assignment”:

1. Assignment Data:
   • World Bank dataset (main dataset)
   • Global Macro Database (interest rates)

2. Instructional Videos (watch in order):
   • Understanding the Assignment
   • Understanding the Data
   • How to Do Data Analysis in Excel
   • Preparing the Data
   • Assignment Template and How to Make Graphs in Excel

Academic Integrity Policy

You may help classmates with Excel mechanics and general guidance. However, if two submissions are found to be exactly or near-identical, both will receive a score of zero.