Why real GDP is the product that effectively allows measuring the country’s economic growth?

R: for real GDP represents the valuation of all goods and services at constant prices from a base year and thus can determine the actual production of a country and its economic growth.

With nominal GDP could calculate the country’s annual inflation? Why? If it is possible to determine through the nominal GDP inflation in the last 4 years.

A: If it is possible to measure changes in prices and an economy that is measuring all the variations of goods and services produced with a reference period.

What do you mean by trend or potential product?

Means potential or trend, that which is projected by the government on the country’s economy, and based on the assumption of full employment base.

When do output gaps?

Output gaps occur when there is a difference between the real and output gap measures the difference between actual production and what could cause the economy at full employment level given the existing resources.

If the gap is up, that difference tells us that it is producing more than projected by the government, ie it can be a cause of inflation therefore the government must stop this.

If the gap is down this difference tells us that it is producing less than it had projected the government shows that we are wasting the product, an economic measure to improve it will hire more people to optimize production. It is here where the central bank increases interest to encourage production.

“Depending on the direction of the gap What policy measures could be implemented?

If the gap is above, there are a lot of production, they have to stop production for a period of time that the central bank lowers interest because companies do not want to produce.


  • What does it measure inflation?

Measures the purchasing power of money over time can also be said to represent a sustained rise in prices.

If there is big money tends to devalue the currency and prices rise, so that people with the same amount of money can ever buy fewer goods and services affecting the welfare of the individual.

  • What is the impact of inflation on the economy?

The impact of inflation on the economy, is that if inflation is risky for the economy as it affects making choices that involve financial commitments such as debt and investment if it does distort the normal functioning of the economy although may signal that the economy picks up.

As we know if prices consumers buy less, therefore there is less demand, which is detrimental to production. Thus there is less demand, which is detrimental to production, thus for the national economy, but we note that inflation has disputes and that after the earthquake of 2010, inflation was rising as more buildings, among others which was good for the economy, because it is picking up, and would require more employees, which would cause unemployment to fall.

  • “Inflation in Chile is actually a measure of the loss of purchasing power of its inhabitants?

If because if there is big money tends to devalue the currency and prices begin to rise, which makes people with the same amount of money buy fewer goods and services affecting the welfare of people.

  • What is always low inflation is good for the economy?

If inflation is low, ie there is little money in relation to goods and services prices begin to desender, which can be detrimental to the economy. After all, the prices begin to fall continuously and expect people to buy thinking time they need cost less in the future, therefore companies may delay their investment, which ultimately depresses economic activity.

“Through the CPI inflation figure in Chile in the last 6months?

September 2010


October 2010



November 2010



December 2010



January 2011



February 2011



What could interpret the developments that have experienced? We mean by deflation and inflation?

The change has increased, which can be clearly causing inflation in Chile has been increasing since

Deflation, understand this as that would indicate a sustained drop da price level.

Stagflation, referred to high unemployment, ie stagnation and high inflation, have stagnated economically is no production and prices rise.

“In macroeconomic terms is meant by full employment?

Full employment is a concept economic referring to the situation in which all the productive working age citizens – labor force – and they want to do, they work . In other words, is a situation in which labor demand equals supply at the given level of real wages]

According to this definition, the unemployment , in a situation of full employment, would be “0.” In practice, it is considered that there is “full employment” there is still some low rate of unemployment would respond to a level of unemployment in the process of change from one job to another, rubbing, and an unemployment rate of people unemployed at any given time do not want a particular job because they do not meet your expectations or personal business. All these people may-or not listed as registered to collect unemployment benefits and may, or otherwise, be considered when determining whether a particular economy in a situation of full employment.

In short, the full employment is when there is low unemployment in countries like Chile borders between 5 and 6% of the population


What is meant uses in chile?

Jobs is synonymous with occupation, then employment is an occupation that generates economic rewards, both monetarily and in kind (quantified in monetary terms), to serve on the occupation for an hour or more, which should belong to the working population, 15 years of age or older.

Employment is measured by a survey which is conducted by the INE.

What is meant by unemployment in Chile?

We understand unemployment, as a person seeking employment for more than a month and can not find it. Among the unemployed or unemployed, there are two types;

Unemployed, have had before and lost jobs and are looking for one.

First time job seekers, first time job seekers can not find it.

Which of all components, the unemployment rate has affected mostly the negative trend?

The main component that has affected the increase in unemployed job seekers for the first time since the population growth.

What is the level of employment and unemployment in Chile?

Santiago de Chile | Efe – Unemployment in Chile stood at 7.1% in September and November quarter 2010, its lowest level so far this year.

The figure is down 0.5 percentage points from the previous quarter (August, October), when unemployment reached 7.6% and is in line with market forecasts, according to the report of the National Institute of Statistics ( INE).

The international crisis and the effects of the earthquake on February 27, unemployment in Chile reached 9% in January-March quarter, down 8.4% in April-June quarter and 7.6% in August- October.

Agriculture, trade and industry were the sectors that impacted positively on employment in September-November period, while decreased self-employment and continued wage increases, which according to the INE realize a better time economic, since it is higher quality formal jobs.

Employment increased in the period by 1.0% to 7,311,220 people, while the labor force did 0.4% to a total of 7,865,880 people, of which 554,660 are unemployed.

By gender, unemployment among men was 6.2% and among women 8.3%.

The employment rate stood at September-November at 54.8% compared to 54.4% from August to October period, while the participation rate reached 59.0% and 72.3% in for men and 46.2% for women.

In the metropolitan region of Santiago, which accounts for 40% of the country’s labor force, unemployment stood at 7.0%, five points less than in the previous rolling quarter.

The regions with the highest unemployment rates were Rivers (south), with 8.3%, Valparaiso (center), with 8.1% and Biobío (south), with 7.5%.

Those of lower rates, in contrast, were those of Magellan (South), with 4.1%; Aysén (south), with 4.6% and Tarapaca (North), with 5.0%.

By sector, the most dynamic in creating jobs in the last quarter were agriculture (6.1%), mining (2.8%) and trade (1.9%), while fall fishing (5.4 %), real estate (4.0%) and electricity, gas and water (2.3%).