You will be asked to briefly discuss a theoretical issue and then to fulfill a particular empirical study (see screenshot).
Your paper should be about 7 pages long (not counting title, references, etc.) and consist of three major parts.
1) In the first part, you should discuss the theory.
As a point of departure, read the literature as provided on the last slide of the respective lecture session. In the cited textbooks, take also a look at chapters that were not covered in the lecture sessions. Additional academic literature can be found by checking on scholar.google.com which academic papers refer to the ones discussed in the lectures and seminars.
2) After that, you should describe the appropriate method in a way that makes clear you understood it. The methods were discussed in the seminars and can be found described in the corresponding sets of slides. Of course, you are welcome to use additional sources explaining the method but should not go beyond what is demanded in the instructions. (have a look in the screenshots regarding the methods). see additional material (screenshots form excel)
3) The major part of your exam (say, about half of the total length) should consist of the results and an interpretation.(include grasp)
The only data source you need is Eurostat, as the software I recommend Excel though you are free to use whatever you prefer. Being creative, finding appropriate data, and solutions to problems (e.g., missing data) are part of the exercise and will largely contribute to the grade.
Please note that the style of writing and quality of figures and tables also account for your grade.