Chapter 19: Q 2. (page 471)
What are the drawbacks to analyzing the global economy on a regional basis?
Some high-income countries and some low-income countries can coexist in an area.
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Explain how the natural rate of unemployment may be higher in low-income countries.
Retrieve the unemployment data from The World Bank database (http://databank.worldbank.org/data/ home.aspx) for India, Spain, and South Africa for 2011-2015. Prepare a chart that compares India, Spain, and South Africa based on the data. Describe the key differences between the countries. Rank these countries as high-, medium-, and low-income countries. Explain what is surprising or expected about this data. How did the Great Recession impact these countries?
Use the demand-and-supply of foreign currency graph to determine what would happen to a small, open economy that experienced capital outflows.
What other factors, aside from labor productivity, capital investment, and technology, impact the economic
growth of a country? How?
Using the data in Table 19.3, rank the seven regions of the world according to GDP and then according to GDP per capita
| Region | Population (in millions) | GDP Per Capita | GDP = Population × Per Capita GDP (in millions) | |
|---|---|---|---|---|
| East Asia and Pacific | 2,006 | \(5,536 | \)10,450,032 | |
| South Asia | 1,671 | \(1,482 | \)2,288,812 | |
| Sub-Saharan Africa | 936.1 | \(1,657 | \)1,287,650 | |
| Latin America and Caribbean | 588 | \(9,536 | \)5,339,390 | |
| Middle East and North Africa | 345.4 | \(3,456 | \)1,541,900 | |
| Europe and Central Asia | 272.2 | \(7,118 | \)1,862,384 |
Table 19.3 GDP and Population of Seven Regions of the World
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