MILESTONE: World Economic Measures Instructions: Research about GDP, Inflation Rate, Unemployment Rate and make sure to be able to answer the following questions. 1. How is GDP different from GNP and GDP per capita? a. According to Investopedia , GNP differs from GDP in that GNP measures the productivity of a nation’s citizens regardless of their locales, as opposed to the GDP’s measurement of production by geographic location. In other words, GDP refers to and measures the domestic levels of production within the physical borders of a country, whereas GNP measures the levels of production of a person or corporation of a particular nationality both at home and abroad. In addition, GDP per capita is a measure of a country's economic output that accounts for its number of people. It is an important indicator of economic performance and a useful unit to make cross-country comparisons of average living standards and economic well being. b. Example: The U.S.'s GNP measures the production levels of any American or American-owned entity, regardless of where the actual production process is taking place, and defines the economy in terms of the citizens. The Philippine’s GDP is measured if any of the business or the products and services have been done inside the country’s border regardless of nationality of that business. 2. How are frictional unemployment, structural unemployment, and cyclical unemployment different from one another? a. According to The Balance , The difference between the 3 is that the Frictional unemployment is when workers are jobless and looking for work in a healthy economy. It doesn't matter if they leave voluntarily or are fired. Others may be returning to the labor force. Friction is the time, effort, and expense it takes the worker to find a new job example of this is when you have a job but the salary is not enough for your needs that’s why you will look for other jobs. While the Structural unemployment refers to a mismatch between the jobs available and the skill levels of the unemployed for example you have disability and the company won’t accept you, because you don't have the ability to do work that may given to you. Unlike cyclical unemployment, it’s caused by forces other than the business cycle. and Cyclical unemployment is when workers lose their jobs because of downturns in the business cycle. Example: A person left the job because the wages he received is low, is an example of Frictional Unemployed. If a person is an Engineer Graduate, and he This document/presentation contains proprietary and confidential information. Reproduction, redistribution, or forwarding to any third party, in whole or in part, is strictly prohibited unless made with prior written consent from Ayala Education Inc. Violation or noncompliance shall be dealt with according to law.
can’t find any job offer, this person is considered as Structural Unemployment. And if a person was removed from their job due to the huge amount of company’s loss, they are considered as Cyclical Unemployment. 3. How does the price of goods affect the supply of a product?
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- Fall '19