1. Define & describe the current status of Real GDP, unemployment rate, inflation rate as measured by CPI, auto sales, Producer Price Index (PPI), and Oil & Fuel Prices. Make a graph for each illustrating the historic trend. ( I would say go back 5 or 10 years..whatever you think). For instance, Real GDP means blah, blah, blah and as of whatever date Real GDP is x. Then present a graph. Then move on to the next economic indicator.
Attached is the completed solution.
Gross domestic product measures the output produced by factors of production located in the domestic economy regardless of who own these factors.
This inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Often referred to as "constant-price", "inflation-corrected" GDP or "constant dollar GDP".
During January (April 2003, the Ukrainian economy grew by 7.1% in real terms, which perceptibly exceeds the GDP growth rate in 2002. We are of the opinion that the factors of this rapid dynamic were the following:
• a better price situation in global markets (primarily, those of ferrous metals and chemicals), which sparked accelerated production growth in export(oriented Ukrainian industries;
• intensified competition in the most developed sectors of the domestic economy, in which government interference is comparatively low (namely, food industry, retail trade, pulp&paper and printing industry, the output of which has increased swiftly over several years in a row), which resulted in more investments to boost productivity;
• a much longer and colder winter than last year, which triggered a significant surge in energy, gas, and water production and distribution (11.6% more than in January-April 2002)
• gains in construction, thanks to increased bank lending for housing starts, as well as investment in construction and assembly works made by metallurgy and retail enterprises.
The definition of the unemployment rate, given below in a series of four definitions, contains a couple of unavoidable complications. (1) A person who loses a 40 hour per week job, but works for one hour mowing a lawn for pay is classified as employed. (2) A person who simply expresses interest in having a job is classified as unemployed. "Discouraged workers" who have lost a job, but do not make an effort to find a new job in a given week are not classified as unemployed or even as in the labor force. Both possibilities mean that the announced unemployment rate is not as definitive as it might sound.
Nonetheless, the unemployment rate is defined as the number of unemployed persons divided by the labor force, where the labor force is the number of unemployed persons plus the number of employed persons.
There has been a fall in both the number of people in employment and the employment rate. The number of unemployed people, the unemployment rate and the claimant count has all increased. The number of inactive people of working age and the inactivity rate has increased. The number of vacancies has fallen. Growth in average earnings, both including and excluding bonuses, is unchanged.
The employment rate for people of working age was 74.2 per cent for the three months to October 2008, down 0.4 both from the previous quarter and over the year. The last time the rate was lower was in the three months to February 2000 (when it was 74.1 percent). The number of people in employment for the three months to October 2008 was 29.38 million, down 115,000 over the quarter but up 57,000 over the year. The number of jobs in September 2008 was 31.53 million, down 134,000 over the quarter and down 71,000 over the year. This is the biggest quarterly fall in jobs since December 1992.
The unemployment rate was 6.0 per cent for the three months to October 2008, up 0.4 over the previous quarter and up 0.7 over the year. The last time the rate was higher was in the three months to May 1999 (when it was 6.1 per cent). The number of unemployed people increased by 137,000 over the quarter and by 238,000 over the year, to reach 1.86 million (the highest figure since the three months to December 1997).
The claimant count was 1.07 million in November 2008 (the highest figure since July 2000). It is up 75,700 over the previous month and up 257,500 over the year.
The redundancy ...
The current status of real GDP, unemployment rate, and inflation rate is considered.