Completing the GDP Rates Table - Essay Example

Name: Instructor: Course: Date: Completing the GDP Rates Tables TABLE 1: USA (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) Year GDP in US$ GDP % growth Pop. . 35 2000 1075.57 1.25 30,689 1.24 271.9 1.339 178,940.9 230,838.3 -23,023 1.67 2.343 2001 1107.46 0.45 31,021 0.27 252.5 1.373 163,424.1 216,267.9 -13,717 1.68 2.417 2002 1154.95 0.94 31,373 -0.98 225.8 1.404 160,922.7 209,087.7 -48,167 1.69 2.578 2003 1214.60 0.2 31,676 0.80 275.8 1.443 169,923.7 221,594.7 -51,671 1.70 2.626 2004 1290.19 0.92 32,048 0.93 185.6 1.

470 189,879.9 256,359.8 -45,678 1.7 1 2.785 2005 1368.73 1.35 32,359 0.40 221.3 1.502 211,898.7 290,384.3 -67,897 1.72 2.89 2006 1450.40 1.24 32,723 1.13 200.3 1.531 524,075 487,674 -56,432 1.76 2.345 2007 1529.58 0.98 33,115 0.69 213.8 1.565 534,718 505,055 -78,456 1.73 2.964 2008 1603.41 1.35 33,506 0.75 237.1 1.602 563,075 538,654 24,421 1.81 3.104 a) Column 5 = column 2 divided by column 4 [i.e. (2)/(4)] b) Column 10 = column 8 minus column 9 [i.e. (8)-(9)] c) Column 11 = column 8 divided by column 2 and multiplied by 100 [i.e. (8)/(2)*100] d) Column 12 = column 9 divided by column 2 and multiplied by 100 [i.e. (9)/(2)*100] How to do this assignment, 1.

You should complete tables 1 and 2 on page 1 which I will upload it. 2. Compare the GDP rates of growth and the Trade Balance of CANADA and the US and try to draw any conclusions based on economic theory The GDP rate of growth for the U.S. has been increasing constantly from 1994 until 2001. The growth rate for Canada has no particular sequence as it has been constantly increasing and decreasing as a result of the economic conditions. The trade balance for the U.S. is less than that of Canada over the years.

Levi (2009) describes that Canada is the tenth-largest economy as measured in US dollars. This is a result of the importance of its primary sector with more revenue from the logging and oil industries. The manufacturing industry as well as the automobile industry contributes much of Canada’s GDP (Pomfret 2005).

3. Comment on any observed relations between the rates of inflation, exchange rates, and the trade accounts of CANADA and the USA

U.S. rates of inflation have been ranging from 1 to 3 from 1994 to 2008 while that of Canada has been ranging from 0-2 percent. Thornton (13) describes that Canada’s population is made up of a complex population influenced by the expansion of territory, human migration, and indigenous population. This has therefore improved the exchange rates and improved the level of inflation. The above analysis shows that Canada has a lower rate of inflation as compared to the U.S. (Quarter & Laurie 2009).

The Consumer Price Index (CPI) for urban consumers increased by 0.3 % seasonally. This was contributed by the increase in food indexes and energy. The gasoline index has been rising significantly as well as the electricity and natural gas with the declining indexes for the major grocery store food.

4. Compare Total Exports and Imports as a percentage of the GDP of CANADA to the US and comment on any observed similarities, differences, and so on.

The total exports of the GDP for both U.S. and Canada are almost at the same rate as it ranging from 0-3 percent though the total imports for the U.S. are higher as compared to that of the U.S. The U.S. is the largest in the world as its nominal GDP in 2010 was estimated at $ 14.5 million which is a quarter of the global nominal GDP. The GDP at the purchasing power was also the largest in the world. The estimated per capita GDP was at $45,844 and ranked as the seventh highest. The U.S. is also the largest trading area globally and its trading partners include China, Canada, and Mexico.

The U.S. economy is also a mixed economy and this has maintained it to stabilize the GDP growth rate over the years in cases such as moderate unemployment rate and high rate of research as well as capital investment. Most of the economic activities carried out include services as the country still remains the largest manufacturer in the world. Most of the global currency reserves in the world are also invested in the U.S. dollar, therefore, making the U.S. the most influential financial market. The U.S. import prices declined by 0.6 percent as a report of the decreasing prices of fuel and nonfuel imports. This led to the fall of the export prices by 2.1 percent in October 2011 which was the largest decline since 2008 when the decline was a 2.2 % decrease.  The import prices also fell and as a result that the price index fell by 1.5 percent which declined with the declining fuel prices. Despite the decreases in prices, import prices increased by over 22 percent in 2010.