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BUS102 Introduction to Economics | Report

   

Added on  2020-03-04

6 Pages1027 Words39 Views
Running head: INTRODUCTION TO ECONOMICSIntroduction to EconomicsName of the StudentName of the UniversityAuthor Note

1INTRODUCTION TO ECONOMICSTable of ContentsAnswer 1:.........................................................................................................................................2Answer 2:.........................................................................................................................................3Answer 3:.........................................................................................................................................4Answer 4:.........................................................................................................................................4References:......................................................................................................................................5

2INTRODUCTION TO ECONOMICSAnswer 1: New Zealand, considered to be an economy experiencing the fastest growth among all theeconomies in the OECD countries, experienced a growth of 2.5% and 3.1% successively in 2015and 2016, with its GDP increasing from 173 billion USD in 2015 to 182 billion USD in 2016.The GDP per capita of the country increased $37,294 (2015) to $38,320 (2016)(Data.worldbank.org, 2017). Australia, on the other hand, is a highly developed economy, withGDP being 1,230 billion USD in 2015 and 1,260 billion USD in 2016. The growth of thiseconomy however, has been comparatively lower, with a 2.4% growth in 2015 and 2.5% growthin 2016. The economy experienced a small increase in the GDP per capita, from $51,363 in 2015to $51,878 in 2016 (Dailytelegraph.com.au, 2017). The growth rate of New Zealand’s per capita GDP is 0.03 (3%) and that of Australia is0.01 (1%) [Using the formula: (GDP per capita of Year 2/GDP per capita of Year 1) – 1](Pitt.edu, 2017). The future values of per capita GDP of both the countries can be calculated as follows(The formula being a corollary of the Rule of 70): FV|NZ=38,320*(1+0.03)nFV|Aus=51,878*(1+0.01)n [Where n= number of years in future (Pitt.edu, 2017)] With the help of the above formulae, the following results are obtained: nNew ZealandAustralia1559,70160,2282069,21063,301

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