Answer to Question #121956 in Macroeconomics for shilpa

Question

Using the World Bank’s World Development Indicators database, https://databank.worldbank.org/home.aspx, a) Complete the following table. 2005 2010 2015 2018 GDP per capita (current) Australia China India U.S. GDP growth rate Australia China India U.S. Inflation rate Australia China India U.S. b) Produce a plot for each variable (GDP, gdp growth, inflation) comparing the four countries.
c) What can be inferred with respect to economic growth and price control in each of these country

Answer 1

a)

b)

c)

There has been economic growth in India under the period in question whereas in China, Australia and U.S growth has slowed as below;

Australia’s GDP growth has slowed, from 3.2 % in 2005 to 2.9% in 2018.

China’s GDP growth has slowed significantly, from 11.4 % in 2005 to 6.6% in 2018.

India’s GDP growth has risen, from 3.8 % in 2005 to 6.8% in 2018.

U. S’s GDP growth has slowed, from 4.1 % in 2005 to 2.9% in 2018.

In Australia and the U.S inflation under the period in question has slowed whereas in India and China inflation has risen as flows;

Australia’s Inflation has slowed, from 2.7 % in 2005 to 1.9% in 2018.

China’s Inflation has risen, from 1.8 % in 2005 to 2.1% in 2018.

India’s Inflation has risen, from 4.2 % in 2005 to 4.9% in 2018.

U. S’s Inflation has slowed, from 3.4 % in 2005 to 2.4% in 2018, with a significant rise in 2010 to 16.0%

Price controls are set by the government to control Inflation, governments may set price ceilings (maximum price to be charged) for example rent, which limit increase of rent or price floor (minimum price to be charged) for example minimum wages which limit decrease in wages.