MACROECONOMICS

News about national debt often goes uncommunicated and may also sound absurd and totally unrelated to the general masses of a country, yet it has great significance on our lives, in terms of how it can impact us. In simple terms, interest payments on the national debt are potentially burden to a country. Hence, we might consider that essentially, what matters is the size of the interest burden (which depends on the national debt) on the country and how it compares with the country's economy (which can be measured by country's GDP). This exploration is aimed to investigate the relationship between the GDP of a country and its national debt and even try to find the cases when it will be possible for a nation's debt to exceed its GDP.

International Journal of Academic Research in Business and Social Sciences

The objective of this study is to analyze the impact of budget deficit and other factors on GDP in Malaysia. The data used in this study are yearly series data from 1987-2016. This study also uses Statistical Packages for the Social Sciences (SPSS) software for data analysis purposes. For the purpose of establishing a budgeting model, this study uses Ordinary Least Square (OLS). The findings suggest that there is a significant and positive relationship between all the variables used, namely budget deficit, investment, national saving, real effective exchange rate and real interest rate with gross domestic product (GDP). Therefore, based on the findings, this study hope the result can be imply into a policy to help the government to improve economic growth in Malaysia in the future. Thus, Malaysia will be able to achieve the status of a developed country and more efficiently by the year 2020. society increased and consequently social welfare to one country also increase (Sadono and Aslam, 1999). Therefore, economic growth approach mean output growth in country.

In this study we have examined the impact of some important macroeconomic variables on GDP of Pakistan. GDP, economic health of the country, is affected by many Purpose-This research work explores the impact of macroeconomic variables like inflation, real exchange rate and interest rate on GDP of Pakistan in the light of 32 years data, for the period of 1980 to2013. Methodology/sample-Research was secondary data based, and multivariate regression analysis was used to analyze the data. Econometric model used for analysis consisted of GDP as dependent variable while the independent variables were interest rate, exchange rate and inflation rate. Data was taken for these variables from the website of State Bank of Pakistan and World Bank. Individual significance of the variables, overall significance and goodness of fit of the econometric model was analysed. Findings-The study found that there is significant impact of inflation, interest rate and exchange rate on GDP. As far as the signs of co-efficient are concerned, inflation and interest rate had negative relation with GDP while interest rate possessed positive relation with GDP. Practical implications-Based on results and its analysis it is recommended that Government adopted tight monetary policy to reduce inflation as the results indicate that inflation has significant but negative impact on GDP. In case of developing counties like Pakistan high value of real exchange rate should be maintained because results show that there is significant and positive impact of exchange rate with GDP. Ceiling of interest rate should be removed in order to boost the economy.

Using the following data on consumer prices and exchange rates, calculate and present a table and figure showing the real exchange rate between the US and the following countries in 2010 and 2018: China, India, Saudi Arabia, and Spain. Please use the perspective of each country when calculating exchange rates. Please show your data and calculations. Is the behavior of the real exchange rate different in these countries? How and what are the implications for the external competitiveness of each of these countries? Explain your answers.

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