The growth models considered in Chapter 2 are highly aggregative and some economists (Lewis 1954; Fei and Ranis 1961, 1964; Jorgenson 1961, 1967; Dixit 1968, 1971; Kelly et al. 1972) began to analyse the problems in terms of two sectors, namely agriculture and industry. Briefly, …
The 1960s era, commonly referred to as the “Golden Age”, represents a fascinating turning point for economic and post war policies world over. It was a decade stretch that lasted soon after the Second World War to initial oil crisis that began in 1973. (more…)
Egypt is a fast economically growing country located in North Africa and bordering the Mediterranean Sea. It is an attractive place for tourists, businessmen and investors and this can be attributed to its rich ancient civilization, diverse cultures and traditions which have made it a …
The PESTLE framework examines the six main macro environmental influencing factors of companies: political, economic, social, technological, environmental and legal. These influences determine the future success or failure of the corporate strategies. The political influence include the role of the governments; economics embraces the macro …
Even a few decades ago, China was not considered to be a significant entity in the global political economy. China emerged from the relative isolation and autarky of the Maoist period with the assumption of the de facto power by Deng Xiaoping in 1978. However, …
In 2008 Latvia experienced a banking crisis that stemmed from a poorly regulated banking sector. The banking sector was using aggressive lending to grow the increased inflow of foreign capital, most of which came from Russia. This lead to a property bubble, similar to what …
The Argentinean economy was hit hard by the crisis of 1999-2002 when the national currency plummeted. As prices needed daily readjustment, business was hurt by the immense instability of the currency. To cope with the former financial troubles, the nation should introduce a string of …
Excess Capacity. According to SCM Worldwide, an automotive research firm, in 2004 the estimated automotive industry global production capacity for light vehicles (about 74 million units) significantly exceeded global production of cars and trucks (about 60 million units). In North America and Europe, the two …
Chapter 23 Measuring a Nation’s Income TRUE/FALSE 1. In years of economic contraction, firms throughout the economy increase their production of goods and services, employment rises, and jobs are easy to find. ANS:FDIF:1REF:23-0 NAT:AnalyticLOC:The study of economics and definitions of economics TOP:Economic expansionMSC:Definitional 2. Macroeconomic …
The Discount Rate is a refers to interest rate at which the Federal Reserve or central bank of that country provides loans to the member banks operating in that country. This discount rate is a tool for the fluctuation of interest rates which is not …
Introduction The study of economics is divided by the modern economists into two parts biz. Micro economics and Macro economics. This division is shown in the chart above. Micro economics and Macro economics, both the terms were used in 1933 by Proof. Raglan Frisks from …
The external environment may be analysed using the following: PESTEL involves analyzing the external environment by focusing on: Political environment where government legislation may have a direct or indirect impact on how businesses may operate. For instance deregulation and privatization of public enterprises have created …
Modern economic theory realized that the most crucial difference between natural science and economics is the presence of forward-looking decisions in economics. Expectation play significant role in all aspects of microeconomics. Expectations are highly valued in modern macroeconomics. Expectations have a great influence on the …
Macroeconomic forecasts determine the future directions of state macroeconomic policies. These forecasts and policies invariably impact economic performance of the airline industry. Monetary, fiscal, and budgetary decisions may cause irreversible economic effects on airlines. Simultaneously, fiscal and monetary policies only shape business approaches in airline …
INTRODUCTION In normal economic condition, macroeconomic policy drivessustainable development of anation. The two main branches of macroeconomics policies are based on monetary and fiscal economics. Central Bank, the nationalapex bank controls the monetary policy while the Ministry of Financeplays major role in national fiscal policy. …
Globalization has early roots when when humans first settled into different parts of the globe. Globalization, however, has shown a solid and quick progress in modern times and has become an international force which, due to technological advancements, has increased in speed and scale, so …
Total Marks: [20] Weight: 5% Qs. 1 a. Why do economists include only final goods in measuring GDP for a particular year? Why don’t they include the value of the stocks and bonds bought and sold? Why don’t they include the value of the used …
The development of a business is highly influenced by political situation, especially in international market environment where a business that originate in a country may face difficulty in expanding into another country due to political issue in the target country. However, in the UK, where …
The labor force is a main factor for any economy. therefore, Unemployment is a big problem for the economy. “An unemployed person is the one who is willing and able to work but unable to find a job”. This means those people who don’t work …
Macroeconomics is reflection of performance and structure of economics of a nation or a region. Gross Domestic Produce (GDP), consumption, unemployment, inflation, international trade etc come in ambit of Macroeconomics. Whereas, microeconomic is about actions of businesses (firms) and consumers in determining demand- supply/ prices …
This article revisits the relation between current systemic risk measures and macroeconomic shock based. I construct the combined framework of Granger causality test and quantile regressions to investigate the causal effect in a specific quantile. Empirically, few of the systemic risks show strong relation with …
Adam Smith and Karl Marx Modern political economic theory and philosophy can be greatly attributed to the works of two men who seemingly held polar opposite views on the subject. Adam Smith, a Scottish philosopher, published his most well known work An Inquiry into the …
Foreign direct investment is the overall volume of capital stock directed by companies to a country, where its main headquarters are not located. In short, this is tantamount to capital outsourcing, albeit wide in scope and generally involved with high risks. The more companies investing …
The Australian economy has grown by less than one percent, considering that GDP growth in 2003 was 3.1 percent and 3.9 in 2007. The 2007 growth was the highest in the period, whereas the lowest growth rate of 2.7 was experienced in 2007. (more…)
What is capitalism? Suppose you have one million, you can set up a factory, the ownership of the factory and income generated is yours. Of course, if you want you can sell your plant for stock or real estate. You have the right to dispose …
The current state of the economy is one that is concerning for almost all Americans. Though we are in the recovery phase businesses are still hurting, people are out of work, we are barely getting out of a depression etc. People are pointing fingers at …
Hello Mr. Doe, It is my understanding that the large presence on social networking is quickly approaching and a brief memo discussing how macro-level factors in an external environment have impacted the structure of the online social networking industry in the global marketplace is required. …
SOCI 2013 17 April 2013 How Capitalism Affects the American Dream Capitalism is defined as “an economic system in which the ownership of the means of production- like land, factories, large sums of money, and machines – is in private hands” (SOC 10). Social Philosopher …
The Mercantile policy was an economic theory used in the periods16th to 18th century and it stated that prosperity of a nation was dependant upon the supply of capital and the total volume of international trade. This theory implied that a country had to employ …
Alan Greenspan published “The Age of Turbulence: Adventures in a New World” on September 17, 2007 and the first half of the work is an autobiographical chronology of his life. It gives readers a chance to view the people and circumstances that can help and …
Creator: John Maynard Keynes
In thinking about the overall health of the macroeconomy, it is useful to consider three primary goals: economic growth, full employment (or low unemployment), and stable prices (or low inflation). Economic growth ultimately determines the prevailing standard of living in a country.
Macroeconomics focuses on the performance of economies – changes in economic output, inflation, interest and foreign exchange rates, and the balance of payments. Poverty reduction, social equity, and sustainable growth are only possible with sound monetary and fiscal policies.
The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports). It transforms the money-value measure, nominal GDP, into an index for quantity of total output.
There are 5 common terms in macroeconomics that are considered in aggregate: output, gross domestic product ( GDP ), production, income, and expenditures. Economic output is the aggregate output of goods and services by an economy, which is also how GDP and production are defined.
Macroeconomics books
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