Question

Choose any 2 countries from those listed at the World Bank

Compare the 2 countries' recent macroeconomic performance, focusing on the factors that have influenced aggregate demand and aggregate supply, including inflation, unemployment, and trade.

A

• Afghanistan
• Albania
• Algeria
• American Samoa
• Andorra
• Angola
• Antigua and Barbuda
• Argentina
• Armenia
• Aruba
• Australia
• Austria
• Azerbaijan

B

• Bahamas, The
• Bahrain
• Bangladesh
• Barbados
• Belarus
• Belgium
• Belize
• Benin
• Bermuda
• Bhutan
• Bolivia
• Bosnia and Herzegovina
• Botswana
• Brazil
• British Virgin Islands
• Brunei Darussalam
• Bulgaria
• Burkina Faso
• Burundi

C

• Cabo Verde
• Cambodia
• Cameroon
• Canada
• Cayman Islands
• Central African Republic
• Chad
• Channel Islands
• Chile
• China
• Colombia
• Comoros
• Congo, Dem. Rep.
• Congo, Rep.
• Costa Rica
• Cote d'Ivoire
• Croatia
• Cuba
• Curacao
• Cyprus
• Czech Republic

D

• Denmark
• Djibouti
• Dominica
• Dominican Republic

E

• Ecuador
• Egypt, Arab Rep.
• El Salvador
• Equatorial Guinea
• Eritrea
• Estonia
• Eswatini
• Ethiopia

F

• Faroe Islands
• Fiji
• Finland
• France
• French Polynesia

G

• Gabon
• Gambia, The
• Georgia
• Germany
• Ghana
• Gibraltar
• Greece
• Greenland
• Grenada
• Guam
• Guatemala
• Guinea
• Guinea-Bissau
• Guyana

H

• Haiti
• Honduras
• Hong Kong SAR, China
• Hungary

I

• Iceland
• India
• Indonesia
• Iran, Islamic Rep.
• Iraq
• Ireland
• Isle of Man
• Israel
• Italy

J

• Jamaica
• Japan
• Jordan

K

• Kazakhstan
• Kenya
• Kiribati
• Korea, Dem. People’s Rep.
• Korea, Rep.
• Kosovo
• Kuwait
• Kyrgyz Republic

L

• Lao PDR
• Latvia
• Lebanon
• Lesotho
• Liberia
• Libya
• Liechtenstein
• Lithuania
• Luxembourg

M

• Macao SAR, China
• Madagascar
• Malawi
• Malaysia
• Maldives
• Mali
• Malta
• Marshall Islands
• Mauritania
• Mauritius
• Mexico
• Micronesia, Fed. Sts.
• Moldova
• Monaco
• Mongolia
• Montenegro
• Morocco
• Mozambique
• Myanmar

N

• Namibia
• Nauru
• Nepal
• Netherlands
• New Caledonia
• New Zealand
• Nicaragua
• Niger
• Nigeria
• North Macedonia
• Northern Mariana Islands
• Norway

O

• Oman

P

• Pakistan
• Palau
• Panama
• Papua New Guinea
• Paraguay
• Peru
• Philippines
• Poland
• Portugal
• Puerto Rico

Q

• Qatar

R

• Romania
• Russian Federation
• Rwanda

S

• Samoa
• San Marino
• Sao Tome and Principe
• Saudi Arabia
• Senegal
• Serbia
• Seychelles
• Sierra Leone
• Singapore
• Sint Maarten (Dutch part)
• Slovak Republic
• Slovenia
• Solomon Islands
• Somalia
• South Africa
• South Sudan
• Spain
• Sri Lanka
• St. Kitts and Nevis
• St. Lucia
• St. Martin (French part)
• St. Vincent and the Grenadines
• Sudan
• Suriname
• Sweden
• Switzerland
• Syrian Arab Republic

T

• Tajikistan
• Tanzania
• Thailand
• Timor-Leste
• Togo
• Tonga
• Trinidad and Tobago
• Tunisia
• Turkey
• Turkmenistan
• Turks and Caicos Islands
• Tuvalu

U

• Uganda
• Ukraine
• United Arab Emirates
• United Kingdom
• United States
• Uruguay
• Uzbekistan

V

• Vanuatu
• Venezuela, RB
• Vietnam
• Virgin Islands (U.S.)

W

• West Bank and Gaza

Y

• Yemen, Rep.

Z

• Zambia
• Zimbabwe

Answer 1

I would like to choose two countries India and Pakistan to compare the macroeconomic performance analysis between them. The Economy of India is a developing economy. It is also a mixed economy. India is listed as seventh biggest economy in the World. Indian country placed in 139th place of having nominal level GDP. India occupies second position by having population more than 133.92 crores. The country also has very high youngest population and high productive human resources who have sound English and general knowledge. Pakistan country is the 33rd largest country. This country is characterized by the partial industrial economy and the partial service and agricultural sector. It stands sixth place in procuring armed forces. Pakistan country is also a thickly populated ratio.

At Employment level, Service sector provides ample job opportunities to all educated youth community. Especially BPO sector accounts for 57% GDP. And also India is the major export of IT Software. Other primary and secondary sectors constitutes 43% of GDP. But at the same time, due to increase in cost of living, the purchasing power of the middle and lower middle class people has been drastically reduced the demand for the basic goods. Which in turn reduces the production of the goods and services. Sales volume will be reduce due to less demand and less supply. And also Inflation rate was 5.7% in 2014. This opened the door for unemployment situation to enter it in the critical period. In that particular period unemployment rate was 4.9%. Rise in inflation rate has direct relationship with unemployment rate. This is purely an macroeconomic concept coined with the economic problems prevailing in developing country like India.When the same concept when compared with Pakistan country, we can prove that the country is facing unemployment problems due to following factors - Lack of efficiency governance, Political instability, Supporting terrorist Activities, Overpopulation.