Example Of Aggregates Essay

Table showing Macro Economic Aggregates for 2004-2013

Analysis of Aggregates

1.) Population

The current population of Japan is 127.06 million which accounts to 1.8% of the total world’s population. Its population is almost steady in the last 10 years. From 2004 to 2008 the population increased with a very low rate but from 2008 it has shown a decreasing trend.

Since Japan has high life expectancy and high median age, it has the highest percentage of population of 65+ ages in the world. This puts its government in pressure as the government expenditure will increase due to pensions, medical care and nursing. The continuous increase in ageing population may also lead to shrinking economy if the productivity rate is less than

However the GDP deflator showed an increasing trend from 2004 to 2007 and then it again fell down in 2008. Again it increased by a small percent in 2009 but fell drastically by 2.2% in 2010. After 2010 to 2013 it has shown an upward trend.

The data shown by the government of Japan shows that its inflation rate increased to its highest in last 5 years in December 2013. The prices of all the goods and services except the fresh food materials increased by 1.3%.

5.) Unemployment

The unemployment rate tells the proportion of unemployed people in the country. The unemployment rate of a country is calculated by dividing the number of unemployed people divided by the total people in the labor force. The unemployment rate of Japan is almost steady from 2004 to 2013; it is in between 4-5 %. One reason behind its low unemployment rate is it has a lower younger population and since it has a larger population belonging to older group, so when they retire, they create vacancies. Another reason may be that the economy of Japan is more flexible when there is adverse demand and supply shocks.

Table showing Macro Economic Aggregates for