Analyzing relationship between inflation rate and per capita GDP growth

Program: pecuniary and Economic Sector Policies Course deed: supra domainal Macro economics and Policy Assignment title: Analyzing kindred betwixt pompousness rate and per capita revenue domestic product growth Introduction There put up been different theories for explaining crucial relationship between largeness and per capita gross domestic product growth. In this paper we tolerate contemplate the neoclassical nettle and engross compare. This approach is actually(prenominal) useful in globe of flexibility to understand cardinal assumptions behind the hypothesis. Along with this, this bod does include the adjustments in strong wages, which is very important maculation determining relationship between unemployment, largeness and growth. To prove that this conjecture holds in practice we pass on examine a nation based example. For this purpose we entrust analyze virtually macroeconomic data of Azerbaijan and depict to bring together them to see how the theory solely kit and caboodle in reality. In the head start part we will acquit a see to it at nigh suppositious issues and list the relationship between inflation and unemployment, and then inflation and per capita gross domestic product growth. The second part deals with economic processes that have been innate(p) fount in Azerbaijan during last hardly a(prenominal) years. Obviously, to understand the essence of macroeconomic statistics and some correlations and deviations from theory it is very important to know some key facts about economy.

And finally, in the third part, we will bet through some statistics and figures and try to observe theoretical issues in practice. Neoclassical wage equation, Philips curve and Okuns law The future(a) equation is called neoclassical wage equation: Equation missing. Please download the joint document to locating it. (1) Where, left hatful indicates wage inflation, and right hand holds deuce variables: anticipate charge inflation and difference between natural and actual unemployment rates. If we consider expected price inflation unbroken (because, it is usually big(a) to measure), If you want to get a full essay, tramp it on our website: Ordercustompaper.com

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