The Gross National Income ( GNI )

F. Gross national income in purchasing power parity per capita (GNI PPP/capita) converts income into "international dollars" and indicates the amount of goods and services one could buy in the United States with a given amount of money.

Russia’s economy is very complex and also very terrible at the same time. Many other economy’s are also like this but Russia’s is a very interesting thing to learn about. Russia’s economy has many things wrong with it that in the long run could probably affected it in a negative way. But it also has many positive things about it.The negatives and the positives are, in my opinion, are equal in Russia economy.

1. Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis.

Another repercussion of the Soviet Union’s collapse was the failure of the economies of almost every new post-Soviet country. Most of the economies of the new Republics were left in shambles after the collapse. In Russia, people were not ready for the new economic freedom that resulted from the fall of Communism. Their unpreparedness led to inflation. “Inflation caused prices to go up three hundred percent in the first month, and 2,591 percent by the end of 1992.”( Russian Economy in the Aftermath of the Collapse of the Soviet Union) Just three years after the Soviet Union’s fall, Russia’s inflation rate had skyrocketed to 2591 percent, evidencing that Russians were not prepared for such a rapid evolution, going from a communist economy into a capitalist economy. All post-Soviet countries had the same economic fate as Russia, plunging into worse economic conditions than the United States suffered during its Great Depression. For example, in 1992, the Ukraine had almost a fifteen percent drop in its gross domestic production and Latvia suffered a 33 percent drop. (GDP growth) Many of these countries’ economies are still suffering as a result of the rapid evolution

Gross Domestic Product, also known as GDP, is defined as the dollar value of all final goods and service produced within the border of a country during a specific period of time, typically in one year. GDP measures the value for the whole country, and it also changes quickly. We can take a look at the trends of US GDP in the website of the U.S. Bureau of Economic Analysis.

The Russian state has been characterized by its strong heritage of powerful, autocratic leadership. This domination by small ruling elite has been seen throughout Russia's history and has transferred into its economic history. Throughout the Russian czarist period, to the legacy of seventy years of communism; Russia has been a country marked by strong central state planning, a strict command economy and an overall weak market infrastructure (Goldman, 2003). Self-interest, manipulation and corruption have all been present in the Russian economy, and have greatly helped the few as opposed to the many. To this day, Russia still struggles with creating a competitive and fair market.

Over the course of Americas 239 years of existence it has had so many different ups and downs in its economic center ranging from the highest of its ups in the roaring twenties to one of its lowest lows in the recent great recession. It impossible to be able to completely guess what the united states economy is going to do next but with the help of a few monitors we are able to estimate where America is at this time and make as good of a guess on where it is going than ever before. With these tools we can see that the United States is on a steady incline shown through the improvements in the Gross Domestic Profit, low inflation, the rising labor market along with the Manufacturing & Trade Inventories & Sales tool.

Yeltsin grew up in a small community with not much to live off of, so he often said that “I want their lives to improve before my own eyes (Berger).” Yeltsin remembered how he grew up in poverty and he did not want others to live like him, or if they were at the beginning of his presidency, he wanted to change the economy so they were able to achieve more. His perseverance to help the less fortunate is where his idea for the 500 Day Plan to reform the economy stemmed from. There were many goals throughout the plan and, “One of their goals during the first 100 days of the reform plan is to halt inflation (Goldman).” Inflation was a large problem not only in Russia but in other countries throughout Europe as well, so the hope to end inflation would greatly help the economy and the quality of people’s lives. Unfortunately, there were many problems with the transformation of the economy because the inflation was so extreme. Inflation continued to grow and, “Homelessness and poverty increased as the government failed to pay pensions or the wages of workers in the state sector. Manufacturing output continued to slump. Financial crime and corruption flourished with impunity (Steel).” Many of the economic problems that Yeltsin planned to fix failed, and actually put Russia in a worse state than it was in before. The value of the rouble, which is Russia’s currency lost almost all of its value, making inflation an even bigger problem. Throughout the 1990s, Yeltsin tried to help to recover the economy, and “Thanks to an increase in the world price of oil, Russia’s economy began to revive in 1999 but not enough to revive the president’s popularity (Steele).” At this point, the economy was improving little by little, but Yeltsin’s popularity was on a decline because of the worsen state he put Russia into economically. Even

Perhaps the most significant impact of the collapse of the Soviet Union in 1991 has been the economic chaos which subsequently consumed the country. For five years following the collapse, Russia saw its comparatively developed centrally planned economy contract severely. It was not until 1997 that Russia began to show signs of recovery as a result of its new open-market policies. Since that time, the gross domestic product (GDP) of the country has grown by an average of 6.7 percent per year, largely on the back of oil exports, as well as a steadily developing service and industrial output. Currently, Russia's GDP by purchasing power parity (PPP) is approximately $1.5 trillion, making it the ninth largest economy in the world and the fifth largest in Europe. If this growth rate is sustained, the country will become the second largest European economy after Germany and the sixth largest in

Prompt: Analyse how aggregate demand, aggregate supply, saving, investing, business cycles, and GDP effect the nation's economy (including types of unemployment, poverty, economic growth, and inflation).

Soviet Union/Russia – The Mikhail Gorbachev Government, in 1991, banned the currency note of Ruble 50 and 100 in Soviet Union in an attempt to end and render valueless the huge amounts of black money that had amassed among the corrupt in the country. The government towards it final moments expected that the implementation of this said plan will decrease the market of black money substantially and give a proper life to common people. The reform failed to halt inflation, and instead served mainly to accelerate a slide in public confidence in the government. As political infighting combined with economic collapse, Gorbachev faced a coup attempt that August which destroyed his authority and led to the Soviet break-up the following year. In the subsequent years however progress in stabilization did not lead to a widely expected rapid expansion of wholesale markets based on the cash Ruble. The share of economic transactions and budget based operations in money surrogates and barter increased sharply despite all efforts by the government towards its prevention, along with specialized non-cash intermediary organizations, a fragmentation of markets, and an elaborate differentiation of prices for the same commodities according to type of transaction. As opposed to the past, when barter prices were commonly decreased below cash prices as a means of tax avoidance, average non-cash prices have become significantly higher than their cash counterparts. This created a problem in the

This is due in part because of the unequal wealth distribution. The top one percent of the richest people own forty six percent of the global wealth. This wealth being held by the rich would not be a problem if they were not so selfish with their earnings. The distribution of wealth leads to the subsequent unequal distribution of resources. Some issues this raises are human settlement and population distribution, economic activities, trade and quality of life. Certain indicators can be expended in order to measure a nation’s wealth and they include: Gross Domestic Product (GDP), Gross National Income (GNI) and Human Development Index (HDI). The Gross Domestic Product is the total value of all goods and services. This is a good indicator of what the country is like in relation to their products being sold. The GNI is the GDP plus the income from foreign investors minus the money paid out to foreign investors. The GNI and GDP are not always equal between or within countries. The HDI captures the health, education and income of any given area. It is often a more accurate depiction of what the people are like.

GDP consists of Gross (before taking into consideration the depreciation in the value of the product), Domestic (within the borders of a country) and Product which simply means a good or service. So what does it all mean when all these three factors are interlinked? GDP is simply the market value of all the final goods and services produced within a country in a given time period – usually a year (Parkin et al. 2005: 438).

Central Bank of Russia (CBR) introduced an exchange rate target band. The regime was mutating during the following three years, featuring various corridor ranges, levels and crawls. Also, from 1996 the CBR targeted an “inner band” with a small range and a short announcement horizon, in order to smooth the day-to-day fluctuations of the ruble. Yet the principal regime remained in place until August 1998. It slowed ruble depreciation to a 9.7% average during target regime which compares impressively to the 138% during the 2 years prior to it. Cash revenues declined, on the federal level they fell from 12.9% of GDP in 1995 to just 10.7% in 1998. Enlarged government revenues declined from 33% to 31.7%. Tax collection problems were mostly structural and tedious to ease. Tax laws were complicated, inefficient and inconsistent.

In earlier times Gross Domestic Product was one of the main indicators to measure a country’s wealth. Gross Domestic Product (GDP) is defined as the total value of all the goods and services produced by a nation in any given year ("Is the Gross Domestic Product (GDP) a Good Measure of Prosperity?"). There are two ways of calculating a country’s GDP. The first is the income approach which is calculated by adding the wages of workers, income from rent, interest and profits. The second, more common form of calculating GDP, is the expenditure approach. Here GDP totals consumption expenditure, investment, government spending and net exports. GDP statistics are considered to reflect a county’s economic output which could possibly lead to growth. However GDP is a measure of income and it should not be confused with wealth. Which is why most modern economists do not consider GDP to be a good measure of a