Curtis Ware
AC1211208
C11E Macroeconomics
Assignment 4_04
January 19, 2016
Part A
1. Describe three (3) ways we can use macroeconomic analysis, with one (1) original example for each way.
There are three principles that describe how the economy as a whole works. First, a country’s standard of living depends on its ability to produce goods and services. Second, prices rise when the government prints too much money. Third society faces a short-run tradeoff between inflation and unemployment.
A country’s standard of living depends on its ability to produce goods and services, which in turn depends on its productivity. The productivity which is a function of the education of workers and the access workers have to the necessary tools and
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Understanding why economies grow, allows governments to better provide for its citizens through evaluating public policies. More educated decisions by government allows for a good economy. A good economy allows citizens to save a larger percentage of their earnings. The citizens are then more likely to spend money on goods and services. Macroeconomic analysis allows businesses to understand how economies fluctuate, therefore providing the correct products at the right prices to their customers. Businesses make more money due to the spending of the citizens. Macroeconomic analysis allows businesses to make more informed business decisions. Businesses use their knowledge of macroeconomics to predict the effects of current public policies on interest rates, they then decide how and where to borrow the funds saved to purchase machinery and equipment that make their workers more productive and educated. Well-educated workforces allow firms to quickly adopt new technologies that increase worker …show more content…
When productivity falls, the growth rate of real GDP turns negative as the technological shock is felt throughout the economy. If the return on labor is less after a technology shock, people will work less. People will substitute leisure time for productivity time and unemployment will rise if labor rates cannot be reduced. Output will also be affected by a negative technology shock. Reduced labor rates will cause reduced demand for goods. Reduced rates for goods will cause financial frictions and loan losses which could possibly restrict future credit supply.
2. Suppose you were interested in increasing technological progress in your country. Suggest two (2) ways to do this.
Governments have long sought to subsidize technological growth as a way of improving the standard of living for all of its citizens. Subsidizing private sector invention, by protecting the effort through tax credits and patent protection, provides incentives for new products and services to be brought to market. Supporting innovation, allows for larger increases in the technological progress. Government tax credits, patents, licenses to support the entrepreneurial effort are all techniques that can positively support
The economy of Brazil is in the top ten largest economies along with the United States. It is the biggest in Latin America. Actually it is the seventh largest in the world. Brazil has used its newly found economic mechanism to syndicate its outcome in South America and show more of a role in the Global Businesses. The Obama Administration’s National Security Strategy recognizes Brazil as a developing center of effect, and greets the management of the country’s joint and global issues. The United States and Brazil associations mostly have been good in the recent years. But Brazil has other strengthening relations with neighboring countries and expanding ties with nontraditional partners in the South that’s developing.
1. NORMATIVE ECONOMICS—REPUBLICANS VERSUS DEMOCRATS Visit both the Republicans’ www.rnc.org and the Democrats’ www.democrats.org Web sites. Both parties address Healthcare and both address Energy policy, for example. (Democrats under “Issues”, Republicans under “Our Party”.) Compare and contrast their views on two such issues. Generally speaking, how much of the disagreement is based on normative economics compared to positive economics? Give an example of loaded terminology from each site.
a. Given the change in the value of the dollar between 2008 and 2009, as indicated in the table above, describe the effects this will have on United States tourism in each of these countries.
Deciding to start a business is brave and adventurous. The first step to success is a brilliant, viable, profitable idea. Whether you have decided to do it on your own because you are tired of working for someone else, or you are laid off after many years in your organization, before you decide to invest your life savings and get buried in debt, consider the big picture, the current economy, your demographic target consumer and do your research. The idea of solar energy is one such brilliant, viable idea. True the demand is present for such energy, but before taking the leap, consider the market saturation, competition, governmental rules and regulations and other determent factor that will influence the success of your
Humanities: Hamanities classes are all about the human. These types of classes focus on cultural values, history and Art.
Economics is of practical value in business. An understanding of the overall operation of the economic system puts the business executive in a better position to formulate policies. The executive who understands the causes and consequences of inflation is better equipped during inflationary periods to make more-intelligent decisions than
Course Description Principles of Macroeconomics deals with consumers as a whole, producers as a whole, the effects of government spending and taxation policies, and the effects of the monetary policy carried out by the Federal Reserve Bank. Macroeconomics is concerned with unemployment, inflation, and the business cycle. Text Required: Macroeconomics, Roger A. Arnold, 7th Edition, 2005 Recommended: Macroeconomics Study Guide, Roger A. Arnold, 7th
It is indicated that on page seven in his book, In Our Hands: A plan to Replace the Welfare State, Charles Murray of the American Enterprises outlines his proposal to establish a Universal Basic Income or UBI. Furthermore, based on the work that I have learned in this class over the course of the semester, I believe my overall evaluation of this proposal is that it seems like a great ideal proposal for the United States of America because it provides every individual the opportunity to receive a Universal Basic Income (UBI). However, after learning about what the proposal contains, it seems like it would not be an achievable or possible idea due to various factors. Therefore, it would alter the distribution
If unemployment rate lowered, that means that the job market would increase. An increase in the job market would vastly increase the overall GDP of an economy (Doc 1). With the economy handing out pink slips and firing employees, a boost in employment would lead to an economic expansion (Doc 3). An economic expansion would go so far as to slow
This course provides students with the basic theories, concepts, terminology, and uses of macroeconomics. Students learn practical applications for macroeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual
-The two basic assumptions that economists make about individuals and firms are that individuals act to make themselves as well off as possible, and that firms attempt to maximize profits.
1. Suppose the CFO of an American corporation with surplus cash flow had $100 million to invest last July 15 and the corporation did not believe it would need to utilize these funds to retool or expand production capacity for 1 year. Suppose further that the interest rate on 1 year CD deposits in US banks was .5%, while the rate on 1 year CD deposits in England (denominated in British Pounds) was 2% at the time. Suppose further that the exchange rate at that time was $1.68 per British pound .
As seemingly tangible evidence of a promising and greatly developed future society, technological advancement and innovation is typically celebrated and generously compensated by our contemporaries. In fact, individuals with a remarkable technological genius are deeply respected and almost venerated for their creations. Modern technology is, undeniably, used at the advantage of the American public, as it aids not only in disburdening the general population of the inconvenience of quotidian chores and in facilitating the accessibility of luxurious commodities to the lower classes but it also encourages the progression of the globalization of our society. Naturally, the government has also begun to have ready access to the newest
The economy is one of the few issues that affects almost every single person on the planet. It is something that connects the whole world. A bad economy means people are laid off, they struggle to put food on the table, people cannot afford a higher education, and so much more.
One puzzle that has long plagued business cycle analysis is the existence of large fluctuations in aggregate economic activity that arise from what seem to be small shocks. This anomaly is what motivated the research into the financial accelerator. The financial accelerator is a possible explanation for these disproportional fluctuations. Changes in the credit market amplify and spread the initial shocks. This is explanation fits particularly well when firms and households are overextended or highly leveraged. This credit-market amplification of economic shocks is the result of reduced access to borrowed funds.