Analyzing relationship between inflation rate and per capita GDP growth

Program: Financial and Economic Sector Policies Course performance: International Macroeconomics and Policy Assignment title: Analyzing race betwixt pompousness rate and per capita gross domestic product maturation Introduction There put up been different theories for explaining life-and-death relationship between inflation and per capita gross domestic product growth. In this writing we provide contemplate the classic baffle and wage equation. This burn down is very useful in ground of flexibility to consider underlying assumptions behind the hypothesis. Along with this, this manakin does include the adjustments in real wages, which is very important plot determining relationship between unemployment, inflation and growth. To prove that this theory holds in exert we will examine a nation based example. For this direct we will analyze virtually macroeconomic data of Azerbaijan and attempt to link t hem to see how the theory whole kit and flock in reality. In the first part we will go for a see to it at round suppositious issues and depict the relationship between inflation and unemployment, and then inflation and per capita GDP growth. The second part deals with economic processes that have been natural instance in Azerbaijan during last few 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 tang through some statistics and figures a nd try to observe theoretical issues in prac! tice. Neoclassical wage equation, Philips curve and Okuns law The future(a) equation is called neoclassical wage equation: Equation missing. Please download the expression document to locating it. (1) Where, left hatful indicates wage inflation, and right field hand holds two variables: expected charge inflation and exit between natural and actual unemployment rates. If we consider expected expenditure inflation constant (because, it is usually big(a) to measure), If you want to get a full essay, order it on our website: OrderCustomPaper.com

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