MacroEconomicAnalysis.py

# --- Input Data ---

# Nominal GDP in USD
nominal_GDP_current = 640.59 * 1e9  # Convert billion USD to USD

# Population
population = 46.65 * 1e6  # Convert million to individuals

# Nominal GDP per Capita (Y)
Y = nominal_GDP_current / population

# CPI Data
CPI_current = 7314.95
CPI_base = 	7122.24  # Assume base year CPI 

# GDP Deflator Data
GDP_deflator_current = 76926.30
GDP_deflator_base = 62540.60  # Assume base year GDP Deflator 

# Inflation Rates
I_initial = 17000  # Hyperinflation rate in percent
I_new = 2.4        # Controlled inflation rate in percent

# Employment Data
fired_people = 50000         # Number of people fired
total_labor_force = 3.5*1e6      # Total labor force

# Poverty Rate
PR_initial = 41  # Initial poverty rate in percent

# Alpha and Beta
alpha = 0.5 # Measures the sensitivity of the poverty rate to changes in unemployment.
beta = 0.002 # Measures the sensitivity of the poverty rate to changes in inflation.

# --- Calculations ---

# Real GDP using GDP Deflator
real_GDP_current = (nominal_GDP_current / GDP_deflator_current) * GDP_deflator_base

# Real GDP per Capita
real_GDP_per_capita_current = real_GDP_current / population

# Nominal GDP per Capita (Y)
print("Nominal GDP per Capita (Y): ${:.2f}".format(Y))

# Real GDP per Capita (current)
print("Real GDP per Capita (current): ${:.2f}".format(real_GDP_per_capita_current))

# CPI under hyperinflation
CPI_hyper = CPI_base * (1 + (I_initial / 100))

# Real GDP per Capita under hyperinflation (without policies)
Real_GDP_per_capita_hyper = Y / (CPI_hyper / CPI_base)

# CPI after policies (controlled inflation)
CPI_new = CPI_base * (1 + (I_new / 100))

# Real GDP per Capita after policies (with controlled inflation)
Real_GDP_per_capita_new = Y / (CPI_new / CPI_base)

# --- Real Income Comparison ---

print("\n--- Real GDP per Capita ---")
print("Real GDP per Capita under hyperinflation (without policies): ${:.2f}".format(Real_GDP_per_capita_hyper))
print("Real GDP per Capita after policies (with controlled inflation): ${:.2f}".format(Real_GDP_per_capita_new))

# --- Poverty Rate Analysis ---

# Unemployment impact
delta_U = (fired_people / total_labor_force) * 100

# Poverty rate increase due to unemployment
delta_PR_unemployment = alpha * delta_U

# New poverty rate with policies
PR_with_policies = PR_initial + delta_PR_unemployment

# Inflation impact without policies
delta_I = I_initial - I_new

# Poverty rate increase due to hyperinflation
delta_PR_inflation = beta * delta_I

# Hypothetical poverty rate without policies
PR_without_policies = PR_initial + delta_PR_inflation

# --- Display Results ---

print("\n--- Poverty Rate Analysis ---")
print("Initial Poverty Rate: {:.1f}%".format(PR_initial))
print("Increase in unemployment rate due to firing {:,} people: {:.2f}%".format(int(fired_people), delta_U))
print("Increase in poverty rate due to unemployment: {:.2f}%".format(delta_PR_unemployment))
print("New Poverty Rate with policies: {:.2f}%".format(PR_with_policies))

print("\nInflation rate difference without policies: {:.2f}%".format(delta_I))
print("Increase in poverty rate due to hyperinflation: {:.2f}%".format(delta_PR_inflation))
print("Hypothetical Poverty Rate without policies: {:.2f}%".format(PR_without_policies))