Analyzing relationship between inflation rate and per capita GDP growth

Program: Financial and Economic Sector Policies Course deed of conveyance: International Macroeconomics and Policy Assignment title: Analyzing kind amidst pompousness rate and per capita gross domestic product reaping Introduction There put up been different theories for explaining significant relationship between inflation and per capita gross domestic product growth. In this root word we provide contemplate the classical baffle and wage equation. This surface is very useful in ground of flexibility to extrapolate 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 shape we will examine a nation based example. For this utilization we will analyze virtually macroeconomic data of Azerbaijan and extend to link them to see how the theory whole kit and tidy sum in reality. In the first part we will cook a see to it at virtually suppositious issues and pull out 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 termination 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 calculate through some statistics and figures and try to observe th! eoretical 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 password document to locating it. (1) Where, left hatful indicates wage inflation, and righteousness hand holds two variables: expected charge inflation and deviance between natural and actual unemployment rates. If we consider expected damage 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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