Question

Macroeconomics 203

It is not surprising that the gross domestic product (GDP) of Saudi Arabia goes up when oil prices increase, and the GDP goes down when oil prices decrease. This relation between the GDP and oil price has been established because Saudi Arabia has an oil-based economy.

Based on the provided information from the Ministry of Economy and Planning or any other government websites, please answer the following questions:

a) Calculate and compare the Saudi GDP in 2011 and 2017?

b) Calculate and compare the Saudi unemployment rate in 2011 and 2017?

((Instructions))

The main object of this homework is to teach you how to calculate the economic indicators (such as GDP and unemployment rate) that show you how much economic activity is taking place in that country.

1- You should write no more than 30 words in order to compare between the Saudi GDP in 2011 and 2017, and the same in the case of comparing the unemployment rates.

2- You should show me the sources (government websites) that have been used to calculate GDP and Unemployment rate in Saudi Arabia?

Answer 1

The GDP of Saudi Arabia in 2011 was $671.239 Billion.

The GDP of Saudi Arabia in 2017 was $646.438 Billion.

The GDP at purchaser's price is calculated as

(gross value added by all resident producers in the economy + product taxes) - subsidies that are not included in the value of the product.

GDP is calculated without making deductions for depreciation of fabricated assets or for depletion or degradation of natural resources. For getting a dollar figure for the GDP, the dollar figures for the GDP are converted from domestic currencies using single year official exchange rates.

The Unemployment rate of Saudi Arabia in 2011 was 5.7

The Unemployment rate of Saudi Arabia in 2017 was 5.5

The unemployment rate is calculated as total unemployed people / total civilian labour force.

Comparing the GDP of Saudi Arabia in 2011 and 2017 we observe that in 2017 the GDP of the country has slightly decreased as a result of volatility in oil market.

Comparing the unemployment rate in Saudi Arabia we observe that the unemployment rate has reduced in 2017 as compared to 2011 as a result of increased employment opportunities and economic growth.