Question

please answer all of the following:

A:

Which is a better measure of human happiness, GDP per capita or the human development index? Justify your answer by analyzing the strengths and weaknesses of each approach.

B:

A natural disaster destroy a significant part of the Republic of Amazonia. There were a high number of death, besides widespread destruction of infrastructure and capital. Analyze the short run and long run economic effect of this adverse event.

C:.

The Republic of Rainland has a small, open economy. A new president was sworn in recently. Determined to raise the country’s population above poverty, he doubled the money supply. What is the short run and long run effect on domestic prices, output and exchange rate?

D:

The Republic of Amazonia is having a recession due to a fall in export demand. The chief economic advisor of the President made the following statement:

“The recession causes an increase in unemployment rate from 3% to 6% and a drop in GDP of 5%. While unfortunate, these are the only costs of the economic downturn. Our society could bear them easily. Therefore, the government should do nothing and let the economy recover by itself in due time.”

Do you agree with the analysis and proposal of the economic advisor?

Answer 1

A: Which is a better measure of human happiness, GDP per capita or the human development index? Justify your answer by analyzing the strengths and weaknesses of each approach.

Answer

The measure of human happiness in neither GDP per capita or the human development index according to me because it is uncertain but we can judged the overall social economic condition and the welfare the country by these two things .The GDP per capita is good but it can not predict the overall economic dimensionn and achievement of the humans .While the human development index is a statistical tool which is used and it tells social and economic dimension of a country based on the people health , their education elvel and standards of living .Hence for better measure of human happiness , Human development index is more powerful .

B: A natural disaster destroy a significant part of the Republic of Amazonia. There were a high number of death, besides widespread destruction of infrastructure and capital. Analyze the short run and long run economic effect of this adverse event.

Answer

Due to any natural distaer there is decline in the economy of that country due to food crisis , shut of small and medium industries and a lot more ,In short term the demand of the good andservice increases causing inflation rate to be high , decrease in the overall GDP but it will ajust itself in the long run economy and will get back to normal

C:. The Republic of Rainland has a small, open economy. A new president was sworn in recently. Determined to raise the country’s population above poverty, he doubled the money supply. What is the short run and long run effect on domestic prices, output and exchange rate?

Answer

By increasing the money supply will not help because it would cause the inflation to be high and people will have to pay a large amount to even buy a small stuff , Also to raise the population above poverty the money suplly raise is not a solution .In short run it may cause everyone to be above poverty but in the long run it will termoil the whole economy and will lead to inflation

D: The Republic of Amazonia is having a recession due to a fall in export demand. The chief economic advisor of the President made the following statement:“The recession causes an increase in unemployment rate from 3% to 6% and a drop in GDP of 5%. While unfortunate, these are the only costs of the economic downturn. Our society could bear them easily. Therefore, the government should do nothing and let the economy recover by itself in due time.”

Answer - The GDP drop to 5% and the unemployement from 3% -6% is accpetable and it can bear it and can recover in the long run due to self adjustment mechanism of economy which will neutalize it in period of time but in the short run it will cause Jobless people ,interest rate and output growth to decline making to suffer the people for short run . The govt should do the practise in the short run make the people not to suffer in this .

HAVE A GOOD DAY !