1. Explain why you would be more or less willing to buy long-term AT&T bonds under the following circumstances: a. Trading in these bonds increases, making them easier to sell. More, because if it is easier to sell bond this means that liquidity of bonds …
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 …
As we discussed and read about this week in our class, the topic of the US Budget and how, why and what should we do about it has become a topic with many views and opinions. The United States of America currently holds over 16 …
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 …
Outline the theories of Lewis and Rostow and discuss their relevance in analysing the problems of development in LDC’s In the 1950’s, the two most prominent economists of the Western school were Arthur Lewis and Walt W. Rostow. Their theories had a significant impact on …
The Poverty Eradication Action Plan (PEAP), Uganda’s equivalent of a Poverty Reduction Strategy Paper (PRSP), serves as the country’s main development strategy and planning framework for fighting poverty. Government’s overriding aim as espoused in PEAP is reducing the total number of people living in absolute …
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 …
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 …
What has been happening to the exchange rate of the US$? Give reasons. How is the exchange rate of a currency determined? If the value goes down will that help or hurt the trade deficit? This year, the US dollar continued its long-expected slide. The …
Mercantilism was an early capitalistic economic concept, which was based on the following principle: the only sources of a country’s wealth are the money funds and precious metals it possesses, so the more money a nation has the richer it is supposed to be. According …
One of the major important questions that macro economics deals with is what determines the levels of employment in an economy. There are many opinions and suggestions regarding this issue. Opinions also differ as whether the Government should play an active role in managing the …
Group D INTERNATIONAL TRADE, COMPARATIVE ADVANTAGE AND PROTECTIONISM 1. According to the table above determine which country has the absolute advantage in corn and which in soybeans. In addition, determine which country has the comparative advantage in corn and which in soybeans. Make sure to …
Capitalism Under a capitalist economic system, individuals own all resources, both human and non-human. Governments intervene only minimally in the operation of markets, primarily to protect the private property rights of individuals. Free markets in which suppliers and demanders can enter and exit the market …
Traditionally, the Australian government has attempted to achieve its economic objectives through the implementation of macroeconomic policies especially fiscal policy (the budget). Fiscal policy (FP) is a macroeconomic management policy as it plays a critical role in influencing the level of aggregate demand (AD) in …
Introduction Government expenditure plays an important role in determining the changes in the level of national income; providing the right needs for potential output and sustaining the welfare of the economy. Government spending can determine the changes in the level of national income to a …
Economics is defined as the way the services to produce goods are allocated among alternative uses to satisfy human wants. In short, economics is the output of goods and services that society needs and wants. The history of the United States economy is one 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 …
This report looks at the Banking and Financial systems of the Netherlands. It first provides a background of the Dutch economy and its significance in the world financial markets. It looks at the role of the Netherlands in trade (it has two of the largest …
What incentives drive people to spend their time, energies and engaged into businesses? When many people in businesses and firms are approached and asked by this question, their reply is simply and straightforward: to make money. In other words: to make a profit. It maybe …
Humanity has known in its history long periods of growth with the Agrarian Revolution, the Industrial Revolution, the Oil era and now the Information’s one. From the last period of sustained growth is born the myth of continuous and eternal growth. However, the scarcity of …
FMC industry BY boxes FMC Industry Introduction The fast moving consumer goods (FMC) sector is a large and important part of almost every economy in the world, insofar as the products associated with the industry represents a big part of every consumer budget. The goods …
Capitalism is a system of production in which the wealth generated is shared within a few individuals or one. The system allows for private ownership of the production where the capitalist purchases labor at a squat price and uses the labor to generate enormous wealth. …
Since the financial crisis in 1998, Russia has been experiencing impressive economic growth due to the collaboration of monetary and fiscal policies that stabilized the performance of major economic indicators up to this day. Many economists regard the impressive performance of Russia as part increase …
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 …
The Gross Domestic Product (GDP) of a country is commonly defined as the total market value of all final goods and services produced in a country in a given year. The fact that it is measured regularly and quite consistently in practically all countries of …
Last year, “Promising economic indicators” is a headline in the front page of a Hungarian newspaper. The economists, government representatives and many politicians said that Hungary’s economy is growing. Growing half times as it should be. In reality and if economics can only speak, Hungary …
The new classical macroeconomics model was originated in the early 1970’s by the economists working in the University of Chicago and the University of Minnesota. Robert Lucas, Thomas sergeant, Edward Prescott and Neil Wallace are the economists who were behind the formulation of this macroeconomic …
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 effect of time lags in discretionary fiscal policy in the economic growth and development by the congress and the president captures a broad economic phenomenon. A discretionary fiscal policy is the level of legislative parameters which are used as action policies for providing stimulus …
A long-term effect of the Great Depression was the departure of every major currency from the gold standard, although the initial impetus for this was World War II. In any case, the world economy has simply outgrown the capacity of additions to the world gold …
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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