CE297 Assignment Questions - Macroeconomics and the Philippine Economy

Reading Assignment:

A Brief Introduction to Macroeconomics (pages 1-4 only)

Philippines: A Concise Profile

Answer all questions and submit during class hours on _____________ .

1.) What is GDP?

GDP is the market value of final goods and services produced in a country
during a period of time.

2.) Is the GDP an indicator of a country’s strength? How?

yes, GDP is an indicator of a country strength. It is one way to summarize
a country‘s ability to produce goods and services that meet the needs of
its citizens. when people consume more goods and services and when
they going to provide more services that citizens, GDP increases.
However, GDP is an incomplete measure of a country’s well-being
because it does not offer any information on how the different components
are distributed among the country’s citizens. GDP is also determined by
the factors of production including labor and capital.

3.) What is GNP? How is it different from GDP?

GDP is a measure of income that is producing a particular country. GNP is

a total of GDP and the net property income from abroad.

4.) What are the factors that increase GDP?

The factors that increase GDP our personal consumption expenditure,
gross private domestic investment, government spending, and net
exports. Personal consumption expenditure is increased by increasing
income. Investment is increased by increasing the interest rate.

5.) Why is government spending necessary?

Government spending is necessary because it increases planned
expenditures thus increasing GDP. In effect, the equilibrium GDP and
interest rates are higher.

6.) Is deficit spending advantageous?

Deficit spending drives economic growth by getting the GDP higher.
However, unpaid deficits will become debt which will be disadvantageous
to the economy.

7.) Is government spending justified and useful?

8.) What is inflation?

9.) How does inflation affect consumption?

10.) What is the GINI coefficient?

11.) How does a government’s Fiscal Policy affect the economy?

12.) How does a government’s Monetary Policy affect the economy?

13.) What is the GDP of the Philippines? Its ASEAN neighbors?

14.) What is the Philippines’ infrastructure budget as a percentage of

GDP? How about its ASEAN neighbors?

15.) Is infrastructure spending necessary to propel a nation’s growth?

Why? What are the pitfalls of too much infrastructure spending?