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Wisam Samarah,
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"A Mathematical Solutions to an Unstable Economic Environment: A Case Study of the Palestinian Economy"
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The world economy is currently facing a unique paradox which is defined by the existence of an unparalleled global production capacities associated with rising levels of unemployment, inequality, financial instability, social unrest and ecological degradation. This is why economists are now interested in volatility, uncertainty, complexity and ambiguity (VUCA). The Palestinian economy is a perfect example of a VUCA economy. Thus why the Palestinian economy cannot achieve Stability Certainty Simplicity and Clarity (SCSC)? The purpose of this paper is to study the pattern of the Palestinian GDP and determine the variables that will most influence the movement in the GDP over time. We will use a graphical analysis and then proof mathematically the existence of a functional relationship between GDP and the given variables that affect the GDP throughout time. Then we will take a closer look at the given differential equation and how it moves over time. We will then use time series analysis to empirically show estimate the equation. Finally, advice will be given to policy makers on how decisions should be made in such an environment.