Question

Which interesting macro-economics questions can we arise from an empirical exercise that compares the GDP of four countries? (It compares their real GDP, nominal per capita GDP, real per capita GDP, correlation between their growth rate in two different periods...)

Answer 1

First question arises that whether countries tend to converge and is their any condition on the basis of which there is convergence. Thequestion of importance of technology and other factors in explaining divergence will also arise. Similarly another question that can arise is relation between nominal and real gdp of countries. Also question of relation between gdp and gdp per capita will also arise. Here the debate about importance of population growth or control naturally arises ( regarding its impact on gdp) It will be also discussed whether gdp, gdp per capita, real gdp, real gdp per capita etc accurately measure living standards. This will led to questions about HDI, human poverty index happiness index etc etc. The difficulties in measuring various types of gdp, depreciation etc will slowly arise. Role of institutions, culture, human capital, savings, mineral resources etc etc will also arise