Macro Paper

Macroeconomic Research

As we know, macroeconomics is a part of economics study the behavior of the same units but not individually, but in a broader perspective, as sets without considering individual particulars, that is why macroeconomics studies the growth and fluctuations economies of a country.

Macroeconomics focuses on issues of particular importance to a country such as: Why a country is enriched or depleted in a given time ?, because unemployment originates ?, What causes inflation ?, how a country is affecting the economies of other countries? among others.

In terms of unemployment, the article studied reflects that the rate on the island is almost double in the United States. A large percentage of the workforce in Puerto Rico use government benefits instead of working, being one of the lowest labor force in the world. The sum of employee compensation, rents, interest, proprietor's income, corporate profits, and taxes on production and imports yields national income (McConnell & Brue, 2008).

Since Gross Domestic Product is the total monetary value of production of goods and services a country during a period (usually a quarter or a year), the GDP does not count intermediate goods if during the same period was used to produce the final good. The GDP only includes therefore the added value of a good. The per capita income in Puerto Rico is U.S. $ 15,203 per year. This does not represent even half of the Mississippi, which is the poorest state in America. One of the largest employers in Puerto Rico is the same government. Companies based in the U.S. reap tax benefits and foreign investors, but then do not invest their profits locally to boost infrastructure growth and development jobs (Pringle, 2012).

Nominal GDP is the dollar value of all goods and / or services produced by a country or an economy at current prices in the period in which the goods are produced (McConnell & Brue, 2008). In case of a substantial increase in...