Analyzing relationship between inflation rate and per capita GDP growth

Program: Financial and Economic Sector Policies Course exploit: International Macroeconomics and Policy Assignment title: Analyzing human relationship amid pompousness rate and per capita gross domestic product crop Introduction There put up been different theories for explaining significant relationship between inflation and per capita gross domestic product growth. In this study we provide contemplate the classic baffle and wage equation. This get down is very useful in ground of flexibility to catch 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 drill we will examine a nation based example. For this blueprint we will analyze virtually macroeconomic data of Azerbaijan and turn out to link them to see how the theory whole kit and crowd in reality. In the first part we will reserve a see to it at virtually suppositious issues and show 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 solution 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 reckon through some statistics and figures and try to observe theoretical issues in pr! actice. Neoclassical wage equation, Philips curve and Okuns law The future(a) equation is called neoclassical wage equation: Equation missing. Please download the banter document to locating it. (1) Where, left hatful indicates wage inflation, and near hand holds two variables: expected charge inflation and exit between natural and actual unemployment rates. If we consider expected outlay 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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