Problem-

Why did some countries fare better in the recent financial crisis? Can early warning indicators help predict which countries will be most vulnerable in an economic crisis such as the one that occurred in 2008-09?

From the data found in the Excel sheet attached, we want to focus on the following five countries:

• Australia

• China

• Iceland

• Japan

• United States

Question:

(a) For each of the 5 countries, in order to get a sense of how the crisis affected each of the countries, compute the change in the level of GDP between 2008 and 2009. (Hint: Billion: 1,000,000,000, Trillion: 1,000,000,000,000)

(b) Based on you answer in (a), which countries were adversely affected by the 2008-09 crisis (i.e., experienced a decline in GDP)?

(c) Present in a chart the data for the inflation rate over the period 1961-2011, with the five countries in the same chart.

Additional Information-

The problem belongs to Economics and it is explain about how some countries have fared well during the 2008 financial crisis and some countries did not. Some of the reasons have been discussed in the answer.