Macroeconomics Unit 4 Individual Project - Business Cycles and Concepts a+ Work (Includes Graph)

Brazil has seen its share of economic downturn in the past century. Brazil’s economy has gained strength since. In 90’s many economic reforms were put in place including tax reform, privatization, deregulation, strict fiscal policy, trade liberalization and a structural and legal framework was set up to attract foreign investment. Introduction of new currency the Real, in 1994 helped cut inflation. Market reforms turned Brazil to become an open economy and began growing again in 2009. Access to most sectors is generally favorable through imports, local production or joint ventures.

The purpose of this paper is to demonstrate how Brazil, a country with an extremely high rate of inflation and low growth, positioned itself as the 7th largest economy of the world and what are the challenges that the country is facing. First of all the Real Plan of Fernando Henrique Cardoso and how it helped the country to stabilize its economy and drop down the inflation rate will be discussed. Secondly how his successor’s policies, Luis Inácio Lula da Silva, improved country’s economy. At the end the challenges that Dilma Vana Rousseff, the current president, is facing

GDP, or gross domestic product, is the sum total value of all goods and services produced by a country within a given year. To achieve this sum, everything produced and exported, all of the money spent by consumers and government, investments, and many other contributing factors are calculated and combined. A nation’s GDP is used as the main indicator of the economic status of that nation. In general, the higher a country’s GDP is, the greater the health of that country’s economy. However, GDP is not as helpful or accurate a calculation as “real GDP”. Real GDP is a term that refers

The US economy has recovered considerably from the great financial crisis of 2008. We are currently in the seventh year of expansion, and the overall performance of the economy has been satisfactory. Most economic indicators have improved dramatically, and some of them are at the best level since then. A significant recovery in home prices, GDP, labor market, stock markets, auto sales, and consumer spending have fostered the economic growth and restored the confidence of market participants.

Economic Ailing: Since Rousseff’s reelection, the Brazilian Real has fallen significantly against the U.S. Dollar and the economy is still struggling, despite the record low unemployment. Rousseff’s administration will need to address the stagnant economic growth quickly, which is currently making investors and companies anxious about the short term.

Brazil is made up of 200.4 million people and the already the estimated number of people unemployed is a close to 10.4 million during December-February. This impacts the Brazilian economy critically as this leads to higher payments from state and federal Governments (Stephan D. Simpson, 2013) and with big events for Brazil; the country is looking further into spending a lot more money than

In the past 20 years the Brazilian economy and government have overcome many difficult and major monetary problems. During the period of time from the 1980s to the 1990s Brazil experienced widespread inflation, leading to the devaluation of the Brazilian currency. This in turn hindered efforts at economic expansion and growth. The politicians and economists of the time did not know how to stop inflation from growing, and the GDP of Brazil in the 1990s fell by more than 80 percent, hitting an all-time low. In addition to monetary problems, like other South American countries Brazil was battling high rates of government corruption. In fact President Collor de Mello was impeached due to charges of corruption during September of 1992. Inflation was running very high in the midst of the 1990’s for Brazil and though many government leaders had promised to combat it since the 1980s, unfortunately their plans failed to work (The Real Plan, 2013, January 1). Thankfully, one man came up with the “Real Plan” which in fact worked and eliminated high inflation. After a successful recovery under the Real plan, Brazil would be hit in the future by two more economic crises: the South American economic crisis of 2002 and economic crisis of 2008, which had originated in the U.S. The economic crisis of 2008 was felt throughout the world, but thankfully Brazilian experience with the high inflation rates and economic crisis during the 1990’s helped them better prepare for the economic problems

Brazil is currently an upper middle class developing country that has positioned itself as the leading economy in South America and the ninth biggest economy in the world. The country’s economy is composed of three big sectors: services which account for approximately 72% of GDP, manufacturing that generates 22.7% of GDP and lastly agriculture generating 5.2% of GDP. Despite being able to sustain steady economic growth and hitting a peak of 7.5 % annual GDP growth on 2010, Brazil has entered a depression and its annual GDP growth has declined in the past five years to -3.8%. Other economic indicators such as inflation and unemployment rate rose to 10.7% and 12% respectively.

1. The current economic situation of the US compared with five years ago shows that the US was entering recession then, and is coming out of downturn now. The Bureau of Economic Analysis publishes GDP data. On a yearly basis, 2008 saw a decline of 0.3% based on chain 2005 dollars. The slump accelerated in 2009 with a decline of 3.1%. Since then, the economy has grown 2.4%, 1.8% and 2.2% respectively. Quarterly data shows a decline of 1.8% in Q1 2008, and Q4 2012 (the latest data available) shows an increase of only 0.1%. While the slow rate of growth is less than ideal, the economy is nevertheless performing better than it was at this point five years ago.

Brazil recorded steady growth in GDP over the years 1990, 1995, 2000, 2005, 2010, and 2015. In 1990, Brazil recorded a GDP of $7909.811 which was the lowest compared to the other five years. In the subsequent years, Brazil established more economic activities that led to the increased GDP. In the other five years, GDP was $8501.34, $8730.147, $9416.364, $11121.42, and $11159.29 respectively. The biggest change in the GDP was recorded in the year 2005 and 2010, for instance, 1705.056. On the contrary, the lowest GDP change for the six years was $37.87 recorded in the years 2010 and 2015.

The situation is that the Brazilian government faces a massive internal debt that goes way beyond its earnings in taxes. As a result, Brazil’s unemployment rates are hitting records and inflation have been severe, especially with food prices.

Brazil is a large country which located in South America and has the second largest economy in America, after the United states. Brazil's capital city is Brasilia and it has the largest population in South America. As we will present in this paper, the two economic indicators: Gross domestic product (GDP) per capita and the unemployment rate. And the two investment incentives, which are two tax incentives: repes and reporto.

The United States has one of the largest economies in word. It contains an abundance of resources, making it easily available for us to create goods and services. The U.S. has had a long recovery after the great recession in 2008, but has come back from that and is now flourishing. Minimum wage has increased, oil prices are down, and the unemployment rate is at 4.8%. There have been immense advancements in technology and other business ideas which has made millions of jobs. The four business cycles that an economy can go through are: recovery, boom, recession, and depression. A recovery consists of increasing employment, upward pressure on prices, and economic growth. A boom is similar to a recovery but it is composed of rapid economic expansion

Since 2003, Brazil has been steadily improving it 's economy and expanded it 's presence greatly. Then in 2007 to 2008, they experienced another growth surge. During this time their GDP was around 7.5%, which is fairly high. In recent years, Brazil 's GDP has decreased due to a wealth of factors. Brazil, unfortunately, emerged with an “overdependence on exports of raw commodities, low productivity, high operational costs, persistently high inflation, and low levels of investment (cia)”. In the past few years, from 2013 to 2016, their GDP growth rate has reached historic lows. Their GDP growth rate reached 4.8%. According to worldbank.com, in 2015 Brazil had a GDP growth rate of 3.8%. Brazil

The business cycle model is a diagram that shows how economic activity fluctuates over time. There are four phases of this activity known as boom, recession, upswing and downswing. Overtime, the theory is that economic activity will increase and that living standards, employment and the quality of life to rise.