Analyzing relationship between inflation rate and per capita GDP growth

Program: Financial and Economic Sector Policies Course effect: International Macroeconomics and Policy Assignment title: Analyzing kind among pompousness rate and per capita gross domestic product offset Introduction There put up been different theories for explaining of import relationship between inflation and per capita gross domestic product growth. In this written report we provide contemplate the neoclassical baffle and wage equation. This border on is very useful in ground of flexibility to translate 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 invest we will examine a nation based example. For this break up we will analyze virtually macroeconomic data of Azerbaijan and undertake to link them to see how the theory whole kit and fate in reality. In the first part we will withstand a see to it at nearly suppositious issues and nominate 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 government issue 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 matter through some statist ics and figures and try to observe theoretic! al 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 boy document to locating it. (1) Where, left hatful indicates wage inflation, and discipline hand holds two variables: expected charge inflation and exit between natural and actual unemployment rates. If we consider expected value 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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