ECO202 Lecture Notes - Consumer Confidence Index, Emerging Markets
29 Nov 2022
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Last year econland"s gdp was us billion, making the economy roughly the size of puerto rico or hungary. Econland is affected by global economic conditions, but it is too small to impact the global economy in return. Exports and imports both account for 25% of gdp. Last year, the world economy did well and econland experienced solid economic growth (2. 4%). Unemployment is low (5%), and inflation (at 2%) and the budget deficit (2. 8% of gdp) are under control. The outlook for next year is moderately positive, with the international monetary. Fund (imf) predicting world economic growth of 2. 4%. Confidence index is at its long-term average of 100. Feedback from policy advisor (year 1): you have increased government expenditure by an amount that is not realistic in the real world. Such extreme decisions make the reported results unreliable: the economy is growing at a good pace.
