# Geography

posted by .

I have an assignment to do comparing Thailand and Australia economically. I don't understand how the GDP, inflation, unemployment and currency rate are linked. For example if inflation is high, what is the expected GDP (low or high). Can someone please explain how they fit together? Thanks a heap.

• More an econ question than "Geography" -

Economics help needed here.

• Geography -

Thank you for using the Jiskha Homework Help Forum. The following site may help you:

http://en.wikipedia.org/wiki/Inflation

• Geography -

GDP is the amount of goods and services produced in a country within a given year. Inflation means that the currency is worth less and that prices are higher. When prices are higher (inflation) the GDP also increases because you rare paying more money for the same amount of goods. The exception to this is when GDP is expressed in real dollars. That is when inflation is factored out of the figures.

Unemployment may have an effect on GDP. When there is a high rate of unemployment it means that production is less because fewer goods and services are produced. That means a lower GDP.

I am not sure is meant by the currency rate unless it is the value of your money as compared to that of other countries. Inflation probably would cause the rate of exchange of your currency to go down. In other words You would pay more of your money for the same amount off good. That could be an increase in inflation in your country since imported goods would be more expensive.

• Geography -

Your question of how GDP and inflation are linked has two answers. GDP can increase either because of factors affecting aggregate supply or aggregate demand. If inflation were to increase, it would generally be caused be an overall increase in the demand for goods and services from that country. If inflation were to rise, however, the increase in price level could impact real GDP as compared to nominal GDP, real GDP being adjusted for the rate of inflation.

## Similar Questions

1. ### Economics

If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year. a)What is the inflation rate?
2. ### Economic

All of the following refer to the Economy of Ecoland: - GDP in 1990 is \$1000 - Annual inflation is 5% per year from 1991 - 1995. From 1996 - 1999, inflation is 10% per year - Real GDP grows at 2% every year a) Calculate real GDP from …
3. ### Economics

3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run?
4. ### Economics

Can someone please explain what factors affect a country GDP?
5. ### Macroeconomics

The following calculations help you see how the ratio of debt to GDP changes from one year to the next. Suppose that in a hypothetical country with a currency called the ducat, debt is equal to 140 trillion ducats and GDP is equal …
6. ### macroeconomics

Year - 2000 Nominal GDP: 9,817 Real GDP: ___________ GDP Deflator: 1 Inflation 2.2 Real GDP Per capita: _________ Population 283.7 Year – 2001 Nominal GDP: ________ Real GDP: 9,891 GDP Deflator: _________ Inflation 2.4 Real GDP Per …
7. ### english

In a total of 200 words, write two paragraphs with about how interest rates affect our purchasing decisions. Identify the topic sentence in each by underlining it i was wnating to know what else i can put with this to complete my assignment …
8. ### Economics

9. During the 1990's the inflation and unemployment trends in the United States changed. What was unusual in the 1990s?
9. ### economics

which of the following statements about inflation are true?
10. ### Economics

1.Gross Domestic Product Explain the difference between nominal GDP and real GDP. 2.Unemployment Name and explain the three types of unemployment. 3.Inflation Name and explain the two types of inflation. Use the following information …

More Similar Questions