Macroeconomic Policies Used By Government And The Central Bank

Macroeconomics - examines the economy as a whole and its main sectors: government sector, household

11.Macroeconomics is best described as the study of A) very large issues.B) the choices made by individual households, firms, and governments.C) the nation's economy as a whole.D) the relationship between inflation and wage inequality.Points Earned: 0.4/0.4Correct Answer(s): C

Macroeconomics is the field of economics that studies the behavior of the economy as a whole not certain parts. Gross National Product (GDP) the economy’s total output; how it is affected by changes in unemployment, national income, rate of growth, and price levels. Macroeconomics encompasses an increase or a decrease in net exports would affect a nation 's capital account. Government’s role in macroeconomics is to keep the economy in equilibrium; taxes and government spending augment the balance to achieve equilibrium in the economy

Macroeconomics is the study of the behavior of an economy at the aggregate level. Macroeconomics considers the industrial sector, the services sector or the farm sector, but not specific parts of any of these sectors. The factor studies might include inflation, unemployment, and industrial production, often with the focus the effect of government policy on these factors.

While it is true that the use of macroeconomic have declined in the twenty-first century, nevertheless, the governments’ policies are still effectives and have assisted in promoting economic growth. Fiscal policies and monetary policies are two of the ways the states manage the national economy (Barma and Vogel, p. 540). Through the fiscal policies, which consists of the taxation and government expenditure, the federal government is able to positively or negatively affect economic activities, and also be able to stimulate certain sectors of the market (Barma and Vogel, p. 540). While strict restriction on monetary policies, particularly the flow of capitals can affect the level of trade and foreign investments in a nation, states are still capable of controlling such economic activities through their

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

Macroeconomics (from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies.[1][2] With microeconomics, macroeconomics is one of the two most general fields ineconomics.

Fiscal policy is used by the government to adjust spending and tax rates in order to influence the economy. Fiscal policy can either expand or contract economic growth. There are two types of fiscal policy; contractionary and expansionary. The United States is operating under expansionary fiscal policy n response to the recession of 2007. The characteristics of expansionary policy includes an increase in government spending and a reduction in taxation.

Fiscal policy involves the use of government spending, taxation and borrowing to affect the level and growth of aggregate demand, output and jobs. Fiscal policy is also used to change the pattern of spending on goods and services. It is also a means by which a redistribution of income & wealth can be achieved. It is an instrument of intervention to correct for free-market failures. Changes in fiscal policy affect aggregate demand (AD) and aggregate supply (AS). In the UK, the Treasury (pictured right) is in charge of fiscal policy decisions

China is the most populated country in the world, and currently has the world’s fastest-growing major economy. It has allowed the country to advance into today’s modern society. The current government structure is a single-party socialist state where communism has prevailed even since 1949. One of the biggest impacts on the country and its markets has been globalisation, which has enabled China to move from a centralised economy to a market based economy. This change in the economic system allowed the GDP to increase by around 10% annually. Consequentially, more than 500 million of its population enjoys a better living standard. In this report we will focus on different aspects of the Chinese market, examining key factors

With the economic development of China rapidly increasing, China has gradually attracted the attention from the worldwide publicity, state media reports, and it has become one of the important players in the international sphere. In general, economic development and growth has become one of the most significant factors for China’s successes. Historically, there are three main periods since the founding of China, which are after the establishment of the country, the period of the opening policy, and the contemporary period. Each historical period has significant influences for China’s development. Hence, I will illustrate how China’s economics developed so fast from the past to modern, and how its economics affected Chinese society and its own market.

China can be considered to be a significant success story due to its explosive economic expansion over the past two decades. The country is equally a prosperous one given that its growth rate which averages nearly 10 percent per year and which has created a vast array of new investment and job opportunities – a growth rate that was fuelled by the county’s various reform efforts. It is important to note here that Chinese government’s strategy was to transform the country from a planned economy to a more market-oriented economy. This strategy have made China to influence almost everything in the global economy because its reforms upgraded the country’s status to that of a trading powerhouse whose activities has reverberated throughout the world market(Adhikari & Yongzheng, 2002; Hertel & Walmsley, 2000; Ianchovichina & William, 2002; Rambaugh & Blanche, 2004).

China is considered the second largest economy in the world. During the past two years, this country has faced a number of both positive and

Macroeconomics focuses on shifts in the business cycle, and the implications of these movements in economic growth, inflation, recession, productivity, budget deficits, trade deficits, and the value of our currency. Macroeconomists believe that the broader economy, composed of many goods and services will not always self-correct. Lengthy periods of unemployment and inflation can occur, as well as trade deficits; and it may take government intervention to remedy the situation. Therefore it may be necessary for government to periodically stimulate the economy during a recession or restrain the economy to slow inflation or decrease the value of the currency to improve the balance of trade. Government achieves this by applying fiscal, monetary, and exchange rate policy tools.

Broadly speaking, the modern economic science has two major components: microeconomics and macroeconomic. Compared to microeconomics, macroeconomics is a wider branch of economics. In 1936, macroeconomics emerged as a separate division of economics with the publication of John Maynard Keynes’ revolutionary book “The General Theory of Employment, Interest and Money”. In the study of microeconomics, it is examined how individual units, whether they be households or firms, come to a decision on how to allocate resources and whether those decisions are appropriate. On the other hand, in macroeconomics, the economy is studied as a whole. Macroeconomics studies the aggregate outcomes of all the decisions that households, firms, and the government make in an economy. Accordingly, the study of the behaviour of and structural changes in, aggregate or national production, aggregate consumption, aggregate savings, aggregate investment, general price level, total exports and imports and a country’s balance of payment position can be considered as the subject matters of macroeconomics. For the purpose of macroeconomic studies, all