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Visit the Web site for The CIA Factbook. Research two countries - the United States and any another country (your choice.) Compare and contrast the GDP per capita for the United States and the other country. You can access more information for a country by clicking on the country name. (hint: reviewing the economy section would be helpful for this assignment.) Answer the following five questions:
1. What is the difference between GDP, nominal GDP, Real GDP, GDP per worker and GDP per capita?
2. What were your reason for selecting the other country?
3. Which country has a higher standard of living? Use some of the data from the economics section to support your answer.
4. Has the standard of living increased or decreased in the United States recently? Explain.
5. Has the standard of living increased or decreased in the other country? Explain.
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
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Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..
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Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
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