Macro-Economic Indicators: GDP, CPI, Unemployment, Interest Rates - Admission/Application Essay Example

Comparison of Canada, Japan, US and U.K with respect to Real Gross Domestic Product Gross domestic product (GDP) is one of the very important indicators considered by economies to evaluate their output and growth. This can be divided into two sub-parts, i.e. Nominal GDP and Real GDP. Nominal GDP is calculated by valuing all outputs at current prices and real GDP is calculated by valuing outputs of different years at common prices. Hence, GDP is considered as better measures than nominal GDP changes in total production (Field, 2008).

Below is the graphical representation of Real GDP of Canada, US, U.K and Japan:- Fig 1: Comparison of Canada, Japan, US and U.K with respect to Real Gross Domestic Product for Canada, Japan, U.K and US. . Japan is considered as the second largest industrialized nation and has a free market economic structure even though it has a weak agriculture and services sectors (Economic Research, 2011). GDP in Canada was observed to decline by almost 0.1% during the second half of 2011. Canada recorded lowest real GDP, i.e. -1.

80% in 2009. Canada as an economy is diversified and well developed. US economy is considered as Canada’s main business partner. About 45% of the Canada’s GDP is contributed by the foreign trade. It is also among the few countries that exports energy (Economic Research, 2011). US economy experienced 1.3% of increment in the second half of 2011 than its real GDP in the first half of the year. The US is considered to be the largest economy in the world. The US has a market based economy where private owned firms and organizations play vital role (Economic Research, 2011).

Again, the GDP earned by UK increased by almost 0.10% in the second half of the year 2011. UK falls among the world’s developed countries. Business firms, banks and insurance services contribute a significant percentage to the real GDP of the nation. From 2008 to 2011, the performance in 2010 was proved to be the best for the Canada which is same for US, Japan and UK (Economic Research, 2011). Comparison of UK, Canada, Japan and US with Respect to Productivity (Output per Worker) The productivity growth (Output per Worker) is considered to be a primary reason responsible for the growth of the standard of living in nations (Field, 2008).

Fig 2: Comparison of Canada, Japan, US and U.K with respect to productivity (Output per Worker) Source: (Economic Research, 2011) It is quite apparent from the above chart that the productivity of the four nations experienced fluctuations with