Macroeconomics Essay

1. Y= C+I+G+NX

Y= 1.101.172+348.848+352.019+491.126-397.307

Y= 1,895.858 €

If entrepreneurs focus on increasing their investments in capital goods after having suffered from an economic recession chances are that the flow of money will start circulating. In other words, people will spend more money and invest more on capital goods such as land which would make the GDP rise hence it would improve the domestic economy.

2a. Openness import+export/GDP

IRELAND ROMANIA GERMANY

(83.5+73.2)/100 = 1.567 (43.5+30.9)/100= 0.744

(41.0+47.3)/100=0.883

Ireland: 156.7%

Romania: 74.4%

Germany: 88.3%

From the results we can deduct that Ireland has the highest percentage of openness referring that its major source of economic relies on trade.

b. The GFCF refers to the net increase in physical assets within a measured amount of period. It is a component of expenditure approach to calculating GDP. (Source: Financial Times) Another component besides equipment would be land improvements.

c. Degree of openness = Import + Export / GDP

IRELAND ROMANIA GERMANY

(83.5+73.2)/100 = 1.567 (43.5+30.9)/100= 0.744

(41.0+47.3)/100=0.883

From the results we can see that Romania has the lowest degree of openness.

d. GDP per capita = GDP/Population

IRELAND ROMANIA GERMANY