In its recent report, The Conference Board’s Global Economic Outlook 2015, updated November 2014 (http://www.conference-board.org/data/ globaloutlook.cfm), projects China’s growth between 2015 and 2019 to be about 5.5%. International Business Times (http//www.ibtimes.com/us-exports-china-have rown-294-over-past-decade- 1338693) reports that China is the United States’ third largest export market, with exports to China growing
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- The AD/AS diagram illustrates GDP falls, often occurring below potential GDP. expansions recessions economic growth the causes of economic growth when the equilibrium level of realarrow_forwardто Part 4: Complete the table using the 2 countries you selected and the "People and Society" page of The CIA World Factbook Country 1: Birth Rate: Death Rate: EA TOUR Germany Infant Mortality Rate: 9.08 births/1,000 population (2022) 3.19 deaths/1,000 live births Life Expectancy: 11.98 deaths/1,000 population (2226 81.51 years Youth Dependency Ratio: 21.7 Elderly Dependency Ratio: Median Age: 47.8 years 33.7 Mother's Mean (average) Age at First Birth: 29.9 years (2020 est.) Country 2: Contraceptive Prevalence Rate (the percentage of women 18-49 who use or whose partner uses contraceptives): 67% (2018) Birth Rate: Part 5: Answer the following questi Death Rate: Japan 6.95 births/1,000 population (2022) 11.59 deaths/1,000 population (20zz) Infant Mortality Rate: 1.9 deaths/1,000 live births Life Expectancy: 84.83 years Youth Dependency Ratio: 21 Elderly Dependency Ratio: 48 Median Age: 48.6 years Mother's Mean (average) Age at First Birth: 30.7 years (2018 est.) Contraceptive Prevalence…arrow_forwardLet's normalize Canadian GDP in 2005 to 100. Out of that, consumption was 70, investment was 20, government expenditure 20, and Canada ran a trade deficit of 10. In the following decade consumption grew at 1.5% per year, investment increased by 10% over the decade, and both government and net exports remained unchanged. Q: Calculate the average annual growth rate of GDP. Show your derivations.<arrow_forward
- Which of the following would not be counted in the U.S. BOP current account? Martha receives a $50 dividend check on stock she owns in business in Germany. A wealthy Italian purchases numerous antiques in the United States for his villa. Helen, an American oil engineer, is a paid adviser to Middle Eastern countries in the area of petroleum extraction. General Motors Corporation owns buildings that are situated in Mexico. France purchases a new jet fighter aircraft from the Boeing Company in the U.S.arrow_forwardFor oil exporting countries, the negative effect of oil boom on their economies is mainly due to volatility of oil price. Discuss.arrow_forwardThe CDB said that its projection of growth comes after an extremely difficult year in which the economies of its 19 borrowing member countries (BMCs) contracted by 12.8 percent on average due to the onset of novel coronavirus. “In 2020, the majority of BMCs registered double-digit declines in GDP. Countries with significant tourism industries, such as The Bahamas, Barbados, Belize, Cayman Islands, Dominica, and Grenada, were hard-hit by a more than 70 percent drop in overnight visitors in 2020, which spilled over to affect other economic sectors. An increase in agricultural production in Jamaica could not prevent the economy from shrinking by 10.4 percent. Agriculture in Belize was affected by a severe drought from the previous year and then a reduction in tourism-related demand. The economy contracted by 13.3 percent. Guyana was the only economy to record economic growth (26 percent), solely due to the start-up of its first oil production. However, growth was lower than expected due…arrow_forward
- When using AD/AS analysis to illustrate changes within an economy, which of the following would NOT need to be considered when looking at changes to economic growth? Select one: a. More efficient use of the capital stock b. Developing a more efficient capital and finance sector c. Increased labour productivity d. Increased availability of social capitalarrow_forward10 Read the following paragraph and answer the question that follows. A number of factors have contributed to the performance of the South African economy. Firstly, the sizeable monetary injection into the local economy as a stimulus due to COVID economic pressures has given a boost to household disposable incomes over the course of 2021. The depreciation of the exchange rate in 2021 year also provided a boost to the domestic economy. Based on the information in the paragraph above, where is the South African economy in the economic cycle as per the figure above? a. contraction b. trough c. expansion d. peakarrow_forwardIn a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis. Recall the components that make up GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C = consumption, I = investment, G = government purchases, X = exports, M = imports, and NX = net exports: Y = Also, national saving is the income of the nation that is left after paying for Therefore, national saving (S) is defined as: Rearranging the previous equation and solving for Y yields Y = . Plugging this into the original equation showing the various components of GDP results in the following…arrow_forward
- The following table shows World Bank estimates for world GDP from 2005 to 2014, both in nominal and real terms (real GDP is calculated using a fixed weights method, using 2005 as a base year). How do you explain the discrepancy between nominal and real GDP in 2014? How do you explain the evolution of world’s real GDP growth rate from 2005 to 2014?arrow_forwardMauritius is an island nation off the coast of the African continent in the Indian Ocean. At various points in its history, it has been a Dutch colony, a French colony, and a British colony and it gained its independence in 1968. It has many lovely beaches and is a major destination for parasailing, SCUBA diving, and water skiing. The country generally has good governance and free trade. The population is approximately 1.4MM people. GDP over the last few years has been growing steadily from $25.5B in 2015 to $28B in 2018 (estimated) – which translates into an average growth rate of 3.9%. GDP per capita is $21,600 and the unemployment rate is 6.9%. Assume Mauritius is a small open economy. Further, assume that the world interest rate (r*) and the equilibrium interest rate of Mauritius (r c – the interest rate in Mauritius if it were a closed economy) are equal to each other. a) Imagine now that a new Prime Minister and Parliament are elected in Mauritius. The new administration and…arrow_forwardThe following table lists 2012 GDP per capita for four countries. The data are given in the national currencies of the countries. It also lists the price of a Big Mac in local currency in each country in 2012. The price of a Big Mac in the United States in 2012 was $4.10. Using the Big Mac as a representative commodity common to the countries, calculate the purchasing power parity (PPP)-adjustment factor for each country, and then the PPP level of GDP per capita in each country. (Round your responses for the PPP-adjustment factor to three decimal places and round PPP GDP per capita to the nearest integer.) 2012 GDP per Capita 2012 Big Mac Price Purchasing Power Parity (PPP)- Adjustment Factor PPP Level of GDP per Capita Norway (krone) Poland (zloty) 579,162 41 krone 41,398 9.1 zloty Turkey (Turkish lira) 19,580 6.6 Turkish lira United Kingdom (British pound) 24,740 2.49 pounds AFARIarrow_forward
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax