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Author Tutor Course Date Macroeconomic Basics Question No. 1: Two primary methods can be used to evaluate living standards; these are national Gross Domestic Product (GDP) and the per capita GDP. The national GPD refers to the value of goods and services produced within a particular country in a specified period. National GDP is the primary measuring tool of a nation’s output (Coppock and Dirk 178). Per capita GDP refers to GPD per person and is computed by dividing a country’s GDP with its population. Although national GDP is essential in providing information on various economic aspects, it is not the best in the assessment of living standards. Countries with a high population such as China have a greater national GDP when compared to other less populous countries such as Japan. Despite having a higher national GDP, in 2013, the per capita GDP of China was at $6,800 while that of Japan was over $38,000 per person (Coppock and Dirk 180). The living standards are therefore better in Japan due to the higher per capita GDP that provides the Japanese people with a higher purchasing power making it possible to purchase higher quality services such as quality education and healthcare. Question No. 2 Unemployment can be grouped into three main categories. The first group is structured unemployment which is caused by people failing to adapt to changes. Over the years, the economy has undergone progressive transformation leading to the development of a modern economy and new jobs that require entirely different skills. Some posts have become obsolete which has led to some level of increased unemployment even if it is for some limited amount of time. Another type
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