1. You only need to speak 400 languages in Sudan! Sudan, a country rich in culture and natural resources, is in the northeastern part of the continent of Africa. Sudan has more than 500 distinct ethnic groups and over 400 languages. According to the International Monetary Fund, GDP growth rate in Sudan was negative 4.2% (-4.2%) as of April of 2024. Two politicians came forward and proposed different ways to solve the GDP negative growth and to achieve full employment. They are Mr. Abdul and Mrs. Ibrahim. Mr. Abdul’s proposal is this: Because people don’t have money to spend, let’s give them $5,000 each. This way they can have what they need and improve their standard of living. Their demand for goods and services will then stimulate production and, thus, the demand for labor, leading to a lower unemployment rate. Mrs. Ibrahim’s proposal is this: Because production in the economy is low, leading to a decline in GDP, let’s lower the interest rate so people will borrow more money to invest. Your job is to do the following. Evaluate each proposal’s effect on GDP Unemployment Price level Provide your own recommendations on the better proposal and how and why it will lead to economic growth (economic expansion)
1. You only need to speak 400 languages in Sudan!
Sudan, a country rich in culture and natural resources, is in the northeastern part of the continent of Africa. Sudan has more than 500 distinct ethnic groups and over 400 languages.
According to the International Monetary Fund, GDP growth rate in Sudan was negative 4.2% (-4.2%) as of April of 2024. Two politicians came forward and proposed different ways to solve the GDP negative growth and to achieve full employment. They are Mr. Abdul and Mrs. Ibrahim.
Mr. Abdul’s proposal is this: Because people don’t have money to spend, let’s give them $5,000 each. This way they can have what they need and improve their standard of living. Their demand for goods and services will then stimulate production and, thus, the demand for labor, leading to a lower unemployment rate.
Mrs. Ibrahim’s proposal is this: Because production in the economy is low, leading to a decline in GDP, let’s lower the interest rate so people will borrow more money to invest.
Your job is to do the following.
- Evaluate each proposal’s effect on
- GDP
- Unemployment
- Price level
- Provide your own recommendations on the better proposal and how and why it will lead to economic growth (economic expansion)
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