Macroeconomics Final

Topics: Inflation, United States dollar, United States Pages: 5 (1284 words) Published: May 20, 2010
Course name: Macroeconomics

FINAL
1. The two large macroeconomies I selected are China and the United States.

2a. GDP and GDP growth rate
Found on http://www.tradingeconomics.com/Economics/Interest-Rate.aspx?Symbol=CNY ChinaU.S. GDP per capita
2000-94934606
2001-102134518
2002-110634747
2003-120935318
2004-132336272
2005-145237050
2006-161237757
2007-181138138
2008-196338206
2009-NANA

China U.S. GDP growth rate (avg)
2000- 7.684.15
2001- 7.451.08
2002- 8.051.83
2003- 9.432.48
2004- 9.503.58
2005- 10.083.08
2006- 10.982.65
2007- 12.082.13
2008- 9.130.43
2009- 7.63-3.55

2b. Exchange Rates
used http://www.x-rates.com/cgi-bin/hlookup.cgi to find info US Dollar to Chinese Yuan
2000 -1 to 8.2795
2001 -1 to 8.2775
2002 -1 to 8.2766
2003 -1 to 8.28
2004 -1 to 8.2767
2005 -1 to 8.2765
2006 -1 to 8.0702
2007 -1 to 7.8051
2008 -1 to 7.2946
2009 -1 to 6.8295

2c. Inflation rates
Found on http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx?Symbol=USD CHINAUS
JAN/DECJAN/DEC
2000- -0.20/1.502.70/3.40
2001- 1.20/-0.303.70/1.60
2002- -1.00/-0.401.10/2.40
2003- 0.40/3.202.60/1.90
2004- 3.20/2.402.00/3.30
2005- 1.90/1.603.00/3.40
2006- 1.90/2.804.00/2.50
2007- 2.20/6.502.10/4.10
2008- 7.10/1.204.30/0.10
2009- 1.00/NA0.00/NA

2d. Interest rate on short term government debt
Found on http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/yield_historical_2000.shtml and http://www.tradingeconomics.com/Economics/Interest-Rate.aspx?Symbol=CNY
China (JAN at 1 year on all)U.S. (JAN at 1 year on all)
2000 – 5.856.09
2001 – 5.855.11
2002 – 5.852.28
2003 – 5.311.42
2004 – 5.311.31
2005 – 5.582.79
2006 – 5.584.38
2007 – 6.125.00
2008 – 7.473.17
2009 – 5.310.40

2e. Unemployment rate
Found on http://www.tradingeconomics.com/Economics/Unemployment-rate.aspx?Symbol=USD ChinaU.S. (MAR) on all
2000- NA4.00
2001- NA4.30
2002- 4.30 (DEC)5.70
2003- 4.10 (MAR)5.90
2004- 4.30 (MAR)5.80
2005- 4.20 (MAR)5.20
2006- 4.20 (MAR)4.70
2007- 4.10 (MAR)4.40
2008- 4.00 (MAR)5.10
2009- 4.30 (MAR)8.50

2f. Trade deficit
Found on http://www.tradingeconomics.com/Economics/Current-Account.aspx?Symbol=USD ChinaU.S.
2000- 20519.2-417.4
2001- 22503.9-398.3
2002- 49051.8-459.2
2003-56995.2-521.5
2004- 76124.5-631.1
2005- 228081.8-748.7
2006-341448.9-803.6
2007-534691.0-726.6
2008-617825.2-706.1
2009-134459.9-203.2

3. Trends in each variable, What do they mean for economic conditions in each country? The trends shown in the GDP for China from 2000 to 2009 shows an increase from 949 to 1963, while the United States grows from 34,606 to 38,206. This shows that both countries are increasing which is good, and since the United States is already high, China will show more growth percentage also known as the catch-up effect. This is proven in the GDP growth rates calculated, where China holds a 7 to 12 percent increase, while he United States shows increases of 4 percent to decreases up to 3.55 percent. Another fact proving China’s growth is their trade deficit. The trade deficit has remained positive and only gotten better over the years, while the United States has always had negative deficits. The exchange rate proves through the years that China is moving to an equilibrium with the United States dollar, but is still lower in the value of their yuan. Some of the credit for achieving this can be contributed to the fact that China maintains lower inflation rates than the United States. Other interesting facts is that China’s interest rates on short term debt remain stable while the United States was high in the early 2000s, low in the mid 2000s, and high in the late 2000s, until present at an all time...
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