Macroeconomics Non-Collaborative Take Home Final Examination 2015

Macroeconomic

1. As the largest economy in the GCC, the fate
of Saudi Arabia’s economy has a significant impact on the business situation in
the region. The decline of oil prices
presents both challenges and opportunities for the nation, but, in addition,
the country is suddenly forced to go through a leadership transition as a new
king has begun to rule. Such a time is
an opportunity to view the current situation and decide what if any changes
need to be made in its economic strategy going forward. Suppose you were advising the new leadership
in Saudi Arabia. Write an essay
describing the current economic situation in Saudi Arabia as you see it and
provide suggestions for how to improve the economy going forward. Focus your recommendations in two areas: how to stabilize the economy in the short
term and how to foster economic growth in the long run. Be specific in
your policy recommendations and be sure to provide an explanation for why you
believe in these recommendations. My
grade will depend on the quality of your analysis, not on the specific
recommendations themselves. He’s looking
to evaluate your own ability to generate ideas and defend them.

2. You are a business analyst, and you have been
asked to prepare a memo outlining the current economic situation in Bahrain and
the economic outlook for the remainder of 2015.
Prepare a briefing memo on the current situation in Bahrain. Your answer should
have a table with the current inflation rate, unemployment rate, level of
employment and nominal GDP, real GDP growth rate, interest rate, and any other
variables you believe it is useful as part of your memo. Defend your forecast for the economic outlook
for the remainder of the year and provide potential issues that may affect your
conclusions.