Now that we have looked at measures of inflation and unemployment, in addition to GDP, pick a country and evaluate its' "economic health" relative to the United States. Is the country doing better or worse, and why?
Hi,
GDP growth rate, inflation and unemployment are useful indicators to evaluate the health on any economy. We can compare different economies based on these parameters.
Let us compare economies of USA and India on these parameters:
GDP growth rate - GDP measures the total production within the domestic territory. GDP growth rate for USA was 3% for 2018, whereas GDP growth rate for India was 6.8% for the same period. However, it is not correct to compare these two based on GDP growth numbers, as GDP of US is much bigger (almost ten times) than India and thus % growth will be lower than India due to base effect.
Unemployment rate - unemployment rate is around 3.6% in USA while it is 6.1% in India. Thus, USA is performing far better in terms of generating jobs for its population.
Inflation rate - Continuous rise in general price level is called inflation.Annual inflation rate in USA for 2018 was about 1.9%, the corresponding figure for India was 3.4%. Thus, USA has managed to contain inflation better.
From the above, we can safely say that US economy is doing much better. It is generating more job opportunities, producing more and consuming the goods at comparatively lower prices.
Now that we have looked at measures of inflation and unemployment, in addition to GDP, pick...
What are the benefits and problems of Economic Statistics, such as GDP, inflation, Unemployment Rates, and others. Are they more headache than useful? What other alternatives do we have to these statistics and are they can any better improvements.
a) Is GDP the best overall measure of the nation's
well-being? Why/Why not? Is there a better alternative?
b) What is being measured by the GDP ? What is not measured? How
does this relate to the "median household income"
c) The author implies/asserts that, because inflation adjusted
median household incomes have stagnated, the U.S. economy is
failing a majority of Americans...Do you agree/disagree? Either
way, can you reconcile this trend with the broader GDP data that
show significant growth/recovery...
In 2019, the United States is experiencing an unemployment rate that is below its natural rate of unemployment. That is, its labor force is more than fully employed. However, the country is suffering from a rising fiscal deficit, a rising government debt/GDP ratio, and an expanding current account deficit. In addition, after years of quantitative easing in the wake of the 2008-09 financial crisis and economic recession, the Federal Reserve must now roll back its quantitative easing and shrink its...
1. Year Nominal GDP GDP Price deflator Real GDP Inflation Rate Growth Rate 2008 $14,833.60 99.23 -- -- 2009 14,417.90 100.00 2010 14,779.40 101.21 2011 15,052.40 103.20 2012 15,470.70 105.00 2013 15,759.00 106.59 2014 17,420.70 108.27 2015 18,287.20 110.01 2016 18,905.50 112.08 2017 19,738.90 114.27 a. Fill in the blanks in the table above and show your work. b. Over this time period, does inflation...
a) Find the time series data (quarterly or monthly) on the unemployment rate, inflation rate and real GDP growth in the U.S. from 1980 to 2005, and discuss whether the Okun’s Law is valid or not. Then, discuss whether the Phillips curve exists in the U.S. economy (you have to report your data source and or the website). b) Which recession is most severe in terms of its depth and the duration of unemployment? c) Why unemployment rises when the...
How to calculate gdp:
Comsumption + investment + gov. Expenditures +
(exports-imports)
We dont include imports because we dont want to include what
they’re bringing in
Problem 3 In Unit 13 we discussed how to measure GDP per capita and that it is used to measure the quality of life of citizens. This exercise will have you compare and contrast other measures of well being. The Better Life Index was created by the Organization for Economic Cooperation asure of the...
13. In a particular country, the gross domestic product (GDP) increased by 10 percent during the year. At the same time inflation was 6 percent. Therefore real GDP a fell by 10 percent. b. fell by 4 percent. c. rose by 10 percent. d. rose by 6 percent. e. none of the above. 14. One of the major determinants of increasing real GDP per capita and therefore a country's standard of living is a. increasing labour productivity. b. decreasing labour...
What do current economic data tell us about the health of the economy? Assess the current health of the U.S. economy by evaluating the key economic indicators that we have looked at in this course. How close is the overall economy to potential GDP and the natural rate of unemployment? The relevant economics statistics include the growth rate of real GDP, the unemployment rate, and the inflation rate at a minimum. You are encouraged to discuss and evaluate other economic...
We have discussed two models that describe the relationship between inflation and economic growth. Which of the following is a property of the New Keynesian Model but NOT the Real Business Cycle (RBC) Model? Monetary policy has no effect on long run economic growth Recessions can be caused by a fall in aggregate demand. Prices are fully flexible in both the short and long run. All the above are properties of the RBC model. None of the above are properties...
Section B (choose 2 of the following concepts for your report): (iv) Business cycles/unemployment/Inflation; (v) Fiscal policy; (vi) Monetary policy; (vii) International trade. Appendix 1 Case Article While Singapore's 2019 economic growth was in line with economists' expectations, it is the worst showing in 10 years, leaving economists divided on the extent of recovery that 2020 would bring. Full-year gross domestic product (GDP) in 2019 was 0.7%, according to advance estimates from the Ministry of Trade and Industry (MTI) on...