Economics Assignment Help

Economics assignments, be it Microeconomics or Macroeconomics, are never easy. They require detailed answers along with diagrammatic representations of the underlying concepts. Be it the Basic Microeconomics of demand supply like Utility and Choice, Constrained Decisions, Individual Demand, Elasticity, Uncertainty, Production, Costsor complex topics like Profit maximization, supply, Perfect competition, Welfare in general equilibrium, Monopoly, Government intervention, we have an edge when it comes to applying knowledge

Economics has a (largely undeserved, at least on the undergraduate level) reputation for being math-heavy. What economics does, is put a heavy emphasis on mathematical reasoning.  That means that we will use a lot of graphs and talk a lot about the relationships between variables.

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While nominal values accounts for the changes in the price level and the quantity of output produced, real values provide a measure of the change in the quantity of output only, irrespective of changes in the price level over the time period.

To calculate the average annual growth rate in real GDP per capita over the period 2001-2004, we need to calculate the growth in GDP per capita in base year prices (2004).

Average Annual growth rate =  GDP per capita in 2004                          ^  (1/3)

                                                   GDP per capita in 2001 (in 2004 prices)

                                              = [ (102.1/90.8) ^ (1/3) – 1 ] *100

                                              = 3.99%.

(c) Growth rate in real GDP can be expressed as the product of growth rate in real GDP per capita and growth rate in population.

Growth in Real GDP can be calculated as described above and shown below:

Growth in Real GDP =  GDP per capita in 2010 (in 2004 prices)    –  1

                                       GDP per capita in 2001 (in 2004 prices)

                                   = [($125700 / $90800) – 1 ] *100

                                   = 38.44%.

Growth in population =  Population in 2010  –  1

            Population in 2001

                                   = [(6311000/5581000) – 1 ] *100

                                   = 13.08%.

Therefore,

 Growth in Real GDP =  [(1.3844 * 1.1308) – 1] * 100

                                   = 56.55%.

(d) Nominal growth rate =  Real growth rate * Inflation

Nominal growth rate is the growth rate in GDP per capita in the respective year prices and is calculated as:

Nominal growth rate = [($116200/$102100) – 1 ] * 100

                                  = 13.81%.

Real growth rate = Change in base year prices from 2004 to 2005

                            = [ ($106300/$102100) – 1 ]  * 100

                            = 4.11%.

Therefore, Inflation level = [(1.1381/1.0411) – 1 ] *100

                                         = 9.31%.

(e) These figures are subject to data collection bias and sampling error. Moreover they are based on data at a particular date and hence fail to adequately reflect the life style throughout the year. Again, the average per capita values are subject to be influenced by extreme values.