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Q1. (a) Using the data provided for the US and France, describe and compare the patterns of economic growth and development for the two countries over the period 1970 to 2013.
Q1. (b) What are the limitations of the provided data for answering the question in part (a)? What additional data could be useful for answering this question and why?
Q2. In the context of the Solow model of economic growth, define the concept of convergence and explain why the model predicts this outcome. Do economic data support the hypothesis of convergence in reality?
Part 2 : 2000 words
Compare and contrast the changes in the monetary policy of the Bank of England in the UK and the Federal Reserve in the USA since the outbreak of the crisis. How the two central banks have reacted to the crisis? Have they been successful?
Refer to official data in your answer: these are accessible from both the Bank of England (http://www.bankofengland.co.uk/statistics/index.htm) and the Federal Reserve (http://www.federalreserve.gov/econresdata/default.htm) websites, and relate your answer to theories studied during the module.
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