Regional Macroeconomic Analysis of Arizona

Running head: REGIONAL MACROECONOIMIC ANALYSIS
Regional Macroeconomic Analysis
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REGIONAL MACROECONOIMIC ANALYSIS
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EXECUTIVE SUMMARY
This paper analyses macroeconomic indicators of Arizona, one of the largest state of US. The
regional macroeconomic analysis will help in examining the problems faced by the economy.
This paper aims to prepare a complete analysis of issues related to unemployment rate. Despite,
strong GDP growth of the region it suffered due to higher unemployment rate. This paper also
suggests economic tool to solve the problem of unemployment rate. It emphasizes on all
macroeconomic indicators and suggest solutions to maintain growth and prosperity of Arizona.

REGIONAL MACROECONOIMIC ANALYSIS
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Table of Contents
Introduction and Region Evaluation................................................................................................3
Data and Analysis............................................................................................................................4
Data..............................................................................................................................................4
Analysis.....................................................................................................................................11
Solution..........................................................................................................................................12
Reference List................................................................................................................................13

REGIONAL MACROECONOIMIC ANALYSIS
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Introduction and Region Evaluation
The southwestern state of United States (US) is Arizona. It is 6th largest state out of 50
states of US. Phoenix is the largest and capital city of Arizona. The role of the city is important
in the growth of Arizona. It stands 14th in terms of population out of all states of the country. In
2018, total population of the state was 7.17 million (Azeconomy.org, 2019). It increased from
population of 7.05 million in 2017. As of 2017, population of Phoenix was 4.73 million. In 2016,
wage and salary employment of Phoenix was 2,033,910. GDP of the city was 242.95 billion US
dollars in 2017. Unemployment rate was 4.7% in August 2019 (Staista.com, 2019). In January
2017, gross domestic product of Arizona was 326445.80000 million US dollars. According to the
U.S. Bureau of Economic Analysis, real GDP of Arizona grew by 4 % in 2018. It was the fourth-
highest state in terms of GDP growth in 2018. The major sectors of Arizona which contributed
maximum to the GDP of state such as rental leasing, manufacturing, construction and real estate
(Heinemann & Noussair, 2015). The most tradable products of Arizona are civilian aircraft,
copper ores, electronic integrated circuits, processor and controllers and engines. These products
contributed significantly on GDP of the state. The region witnessed strong growth of exports.
The government budget of Arizona of 2020 is estimated at 43.4 billion US dollars.
The five macroeconomic indicators of the state are wages, unemployment rate, GDP,
labour force and inflation rate. The main problem of the economy of Arizona is higher
unemployment rate (Herrendorf & Schoellman, 2017). Despite, steady growth in GDP, higher
wages and strong labour force, the economy have suffered due to high unemployment rate.