Using the data provided in Table 18.3, rank the seven regions of the world according to GDP and then according to GDP per capita.
|Population (in millions)||GDP Per Capita||GDP = Population × Per Capita GDP (in millions)|
|East Asia and Pacific||2,006||$5,536||$10,450,032|
|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|
What are the drawbacks to analyzing the global economy on a regional basis?
Create a table that identifies the macroeconomic policies for a high-income country, a middle-income country, and a low-income country.
Use the data in the text to contrast the policy prescriptions of the high-income, middle-income, and low-income countries.
What are the different policy tools for dealing with cyclical unemployment?
Explain how the natural rate of unemployment may be higher in low-income countries.
How does indexing wage contracts to inflation help workers?
Use the AD/AS model to show how increases in government spending can lead to more inflation.
Show, using the AD/AS model, how monetary policy can be used to decrease the price level.
What do international flows of capital have to do with trade imbalances?
Use the demand-and-supply of foreign currency graph to determine what would happen to a small, open economy that experienced capital outflows.