Watch the Gapminder video â200 Years that Changed the Worldâ available from http://www.gapminder.org/videos/200-years-that-changed-the-world/ and answer the following questions:

d.The income per person is âinflation adjustedâ. Why is it necessary to adjust this for inflation? Your answer a should be no longer that Â¼ of a page

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Nestor RutherfordLv2

17 Feb 2019

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Watch the Gapminder video â200 Years that Changed the Worldâ available from http://www.gapminder.org/videos/200-years-that-changed-the-world/ .
How can free trade help middle income countries or emerging economies âcatch upâ with the high income or developed economies? and give a example (at least 300 words)

Gapminder is a free online tool founded by medical doctor Hans Rosling that allows people to visually explore datasets over time. In one video, Rosling shows how the world has changed over the past 200 years by examining life expectancy and income per person: HYPERLINK "http://www.youtube.com/watch?v=BPt8ElTQMIg" http://www.youtube.com/watch?v=BPt8ElTQMIg Use Roslingâs video to compare the world 200 years ago to present by answering the following questions. What patterns in the data existed initially (around 1809)? What patterns in the data do we have today (around 2007)? How has the range (the highest value minus the lowest value) of life expectancy and income per person changed over the past 200 years? In which ways can one say the world is definitely better off now versus 200 years ago?

1. Youâve learned about money, its connection to inflation, money supply and the monetary multiplier, banking and money creation. Try to apply your understanding of these concepts in analyzing our current situation: During the crisis and until now, the Fed bought a lot of securities from banks and other financial institutions. This made some people fear that the Fedâs actions would spark inflation. Yet, inflation hasnât really shown up in our economy (and the Fed has been doing this for five years now). Explain why, by answering the following questions:

a. Discuss briefly the connection between money supply and inflation.

b. When the Fed buys securities in the open market, what happens to banksâ reserves? What tends to happen to money supply, as a consequence? Explain briefly your answer to the last question. Letâs now look at the facts (data). FRED (Links to an external site.)is a good source of economic data, especially about money. Click on the âpopular seriesâ tab in the FRED homepage.

c. Look at the âCPI for all urban consumersâ series first. Remember that inflation is the rate of increase in CPI. Eyeballing the graph, would you say that the CPI accelerated since 2008 or not?

d. Next, look at the âM2 money stockâ series (make sure that youâre still in the âpopular seriesâ page). Has M2 increased faster since 2008?

e. Letâs try to understand why M2 is showing the pattern that it is. What might be the explanation for it? To see facts about the answer, type âexcess reserves of depository institutionsâ in the FRED searchbox, and briefly discuss the pattern you see for this series, starting around 2008.

f. Look at the âVelocity of M2â series. What happened to it since 2008? Does this pattern support the idea that inflation should rise, or not? Explain briefly. [If you forgot what âvelocity of moneyâ means, please review the âChapter 17 Highlightsâ and focus on the Equation of Exchange.