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World Bank Concepts and Problems in Macroeconomics

As an employee of the World Bank you have been asked to research the needs of a country with a particular economic concern.
For this assignment, select a country and an economic concern, such as population, unemployment, etc. Search the Library and Internet for data sets for the concern that you have chosen.
Answer the following questions:
? Where were you able to find data sets?
? What is the relationship between the variable that you selected and the economy?
? What trends do you see in the data sets? Support your assertions of trends with statistical evidence.

Use the following data to answer questions 1-3 (be sure to provide all calculations).
Please see the attachment
1. Calculate real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow?
2. Calculate the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?
3. Now calculate real GDP for 2004 and 2005 using 2005 prices. By what percent did real GDP grow?
4. Review the GDP information for the past few years from the Bureau of Economic Analysis's Website. Provide a brief summary of the GDP trends over that timeframe and discuss two or three events which may have caused these trends.
Be sure to show your work for each calculation.

The World Bank is currently advising newly industrialized countries on how to encourage growth and they have asked for your help.
Using the internet and other resources, research the factors behind economic growth in Hong Kong and Singapore. Which of these methods of encouraging growth would you suggest to a newly industrialized economy?

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Solution Preview

The response addresses the queries posted in 1087, 533 & 310 words with references.

//Prior to discuss on this topic, one should select a country of his choice, which will be analyzed with one of the given concerns. For this purpose, it is advisable to access library and internet sources. I am taking the example of the United States with an economic concern of unemployment. Additionally, I will provide you some facts on the trends of unemployment in the United States. //

Introduction

For this research, we have chosen the country US with the economic concern of unemployment in the country. The data set is found through the Internet sources and new releases of the US government. Unemployment is the situation in which a person who is able to do work seeks for the work. To study the economy of a country, it is necessary for an economist to consider the unemployment in the study.

The data that is found through the Internet sources provides a comprehensive view about the situation of unemployment in US. This data helps to know all the factors that can affect to the economy of US. It also provides information related to the affect of the unemployment rate on the economic growth of US.

Unemployment and Economy

Unemployment in the country affects the economy. There are inverse relationship between the unemployment rate and economy of a country. An increase in the rate of unemployment leads to the reduced rate of the economic growth of a country. The overall economic trend in a country is the most important element of its business environment like wise the business environment in the country is also an important element for the economic growth of the country.

Human resources of a country are the most crucial factor in its economic growth. Human resource is comprised of the available labor force and its quality. Quality of labor force depends upon the level of its education, skills and its inventive abilities. The non utilization of the available labor force in the country creates the situation of unemployment. Many qualified and skilled people in the country face this situation.

The unemployment and inflation are the opposite terms for an economy but both are harmful for the growth of an economy. If the rate of unemployment in an economy goes down then it causes for the increase in the rate of inflation. It is because the low rate of unemployment causes an increase in the wages and it tends to an increase in the prices of the goods and services. The high rate of inflation affects the growth of the economy.

A high rate of unemployment in the country helps to decrease the inflation rate but it negatively affects the economic growth rate of a country. To avoid both the situations, the goal is decided to get a lowest unemployment rate that doesn't create a higher rate of inflation. GDP growth rate is also affected by the unemployment rate in the country. A high rate of unemployment causes the decrease in the spending power of the consumers that affects the GDP rate of a country (How does a Good Economy Affect Unemployment, 2000).

When the economy is in equilibrium at less than full employment level of ...

Solution Summary

The response addresses the queries posted in 1087, 533 & 310 words with references.

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