Analyzing relationship between inflation rate and per capita GDP growth

Program: Financial and Economic Sector Policies Course statute title: International Macroeconomics and Policy Assignment title: Analyzing relationship amid pompousness rate and per capita gross domestic product addition Introduction There put up been different theories for explaining authoritative relationship between inflation and per capita gross domestic product growth. In this authorship we provide contemplate the neoclassic baffle and wage equation. This approach is very useful in ground of flexibility to take 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 trust we will examine a nation based example. For this shoot for we will analyze virtually macroeconomic data of Azerbaijan and confront for to link them to see how the theory whole kit and luck in reality. In the first part we will get a see to it at most suppositious issues and take in 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 core 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 look through some statistics and figu res 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 watchword document to locating it. (1) Where, left hatful indicates wage inflation, and chastise hand holds two variables: expected charge inflation and dispute between natural and actual unemployment rates. If we consider expected legal injury 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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