Economic Development - ECO 335.01. Mathematics & Economics Coursework

Name
Economic Development - ECO 335.01
Fall 2020
***
Empirical Exercise 4 (EE4)Date
1) Explain briefly what we see in the graphs. For (v) explain also why you chose that variable.
The US real GDP (RGDP) (constant 2010 US$) had increased from 4.75869E+12 in 1970 to 1.82732E+13 in 2018. The GDP has mostly been on an upward trend, and stagnated in the period 1793 to 1975, during the oil embargo period. There were declines in other periods such as 1881/ 1982, 1990/ 1992 and 2008/ 2009. Consumption is the biggest contributor to US GDP growth and has a similar trend to the GDP. Investments in the US have grown gradually, but still, consumption expenditure affects the aggregate demand more than other factors. Government expenditure was mostly on the rise in the US but declined in 1973, 1993, and 2011-2014. The (NX) net exports have mostly been negative, and the highest deficit was in 2006 followed by the year 2007, and 1975 and 1980 were among the best performing years.
In China, consumption contributes a smaller share of the Chinese economy, in 1970, consumption was 11.5% of the real GDP, and this had declined to 8.8% in 2918. The investment was the largest contributor to China’s GDP in the 1970s. In 2018, investment was also the largest contributor to China’s GDP. In the past 5 decades, investment only declined in 1976. Government expenditure has risen gradually over the 5 past decades without a decrease in spending as China’s economy expanded. Chinese net exports have grown the most, and since 1987 there has not been a deficit in the next exports because exports have grown rapidly than the imports.RGDP per capita (or per worker)
The average level of national income per worker adjusted for inflation has growth in The US had grown from $ 60483.07 in 1970 to 115,280.88 in 2019. Similarly, in China, it has grown from 19,403.53 in 1997 to 86,000.44 in 2015 as the RGDP has grown at a faster rate than the workforce. The RGDP per capita is an indicator of standards of living, and there has been tremendous improvement in China’s living standards in the past four decades. China liberalized her economy and joined the WTO in 2001, which paved the way for increased international trade. 
Labor productivity
Labor productiv...