We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Macro economics - Essay Example

Comments (0)
Summary
This paper talks about such macroeconomic concepts as business cycles, fiscal policy and fiscal tools. Business cycle is essentially the rise and decline of economic activity. The mandate of a country to influence economic activity is the central purpose of fiscal policy…
Download full paper
GRAB THE BEST PAPER
Macro economics
Read TextPreview

Extract of sample
Macro economics

Download file to see previous pages... It categorically defined employee and enables the Federal government to enforce acceptable means necessary to promote employment for economic stability (McConnell and Brue 214). These statues as well as other directives from the government are factors that shape a country’s fiscal policy. Prior to the Great Depression, national government intervention was limited to foreign policy and national defense. Most of fiscal policies are determined in state levels of government who had ample discretion in the formation of their own guidelines. Economists often refer to another important factor in the determination of economic dynamics in the form of political influence as a major factor in the federal budget. When there is unsupervised spending by politicians into particular interests groups then this could lead to exhaustive government expenditure relative to the tax revenues and leads to federal budget deficits (Boyes and Melvin 248). Staggering budget deficits is a major problem for any economy that brings imbalance to the entire system and impedes growth bringing adverse effects to members of a country’s population. There are two broad categories of fiscal tools as enumerated by McEachern as automatic stabilizers and discretionary. The first are programs that regulate the economy by stabilizing disposable income through the real GDP and consumption. The best example of an automatic stabilizer is income tax which automatically modifies the disposable income of an individual. The second is a direct manipulation by the government to encourage its macroeconomic objectives including full employment, growth and price stability. They may differ in the length of execution and as to...
This paper discusses such important macroeconomic concepts as business cycles, fiscal policy and fiscal tools. Business cycle is essentially the rise and decline of economic activity. There is no specific or clear-cut span of time that determines a business cycle and the same may range for several years. There are four phases of the business cycle that comprises of peak, recession, trough and recovery
A widely used measurement of output is the Gross Domestic Product (GDP) of a country which sees peaks and lows
The occurrence of business cycles and its concurrent effect on increasing unemployment and inflation prevents economic growth.The mandate of a country to influence economic activity is the central purpose of fiscal policy. Macroeconomic theories are utilized in the formulation of the scope and limitations of fiscal policy.
An example of a direct reaction of the government founded on fiscal policy is the Employment Act of 1946 when unemployment became a major problem after World War II.
Prior to the Great Depression, national government intervention was limited to foreign policy and national defense.
There are two broad categories of fiscal tools as enumerated by McEachern as automatic stabilizers and discretionary The first are programs that regulate the economy by stabilizing disposable income through the real GDP and consumption. The second is a direct manipulation by the government to encourage its macroeconomic objectives including full employment, growth and price stability.
The 2009 stimulus plan implemented by President Obama is a good example of a discretionary fiscal tool adopted by the U.S. Government ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Micro and macro economics
The public’s demand for the two company’s products and services generated projected gains. Before the merger, several financial analysts opined that the proposed merger would be very successful (Baumol, 2011). Many quarters predicted the business after the merger will be rosy.
10 Pages(2500 words)Essay
Macro economics
This paper focuses on determining major strengths and weaknesses of the economies of China and India. For each country, the following economic indicators : GDP and GDP growth rate, exchange rate, inflation rate, interest rate, unemployment rate, and trade deficits will be presented and compared with each other in the paper.
11 Pages(2750 words)Research Paper
Macro Economics
Running Head: Macro Economics Macro Economics Writer’s Name Macro Economics Question 1 The determination of the level of GDP (Gross Domestic Product) in the short run is determined by the model developed by John Maynard Keynes. This model works on the basic premise that the level of production in the economy depends upon the level of aggregate demand.
4 Pages(1000 words)Essay
Macro Economics
Balance of trade = Total exports – total imports. a) In an open economy with a floating exchange rate, a current account balance of payment surplus causes appreciation in the exchange rate of the domestic currency. A current account deficit causes depreciation in the value of the currency.
2 Pages(500 words)Essay
Macro Economics
The consumption expenditure of the society experienced a downfall through the multiplier effect. The firms in supplying goods and services are motivated by spending. The pessimistic attitude of the customers and the investors results in less spending in the economy.
2 Pages(500 words)Essay
Important Aspect Of Macro Economics
Macroeconomics is one of the two important branches of economics. Microeconomics happens to be the other important branch. In Macro economics, national, regional or global level of economics is studied. The topics studied under the umbrella of macro economics include the study of inflation and deflation rates in the economy, employment and unemployment issues, and income, out put, GDP, and overall growth of national and global economy.
5 Pages(1250 words)Essay
Macro Economics Paper
The decisions made would enable the monitoring along with control of the monetary and economic conditions so that the country continues experiencing growth that is sustainable and inflation rates that are low. In the article, the Governor makes the observation that the European continent has experienced weak monetary with their future values still appearing to continue falling in the future.
6 Pages(1500 words)Essay
Macro economics
In the article namely “China Falters in Effort to Boost Consumption” by Tom Orlik and Bob Davis, published in’ The Wall Street Journal’, various macroeconomic issues relating to China have been discussed. These macroeconomic issues include: INCOME OF HOUSEHOLD According to the article, growth relating to the disposable income of the urban households has declined to 6.5 % in the first half of 2013 as compared to the first half of 2012 growth rate i.e.
3 Pages(750 words)Essay
Micro/Macro Economics
The product can be protected by a patent which the company can utilize for many year before it becomes available to the rest of the industry. Kodak and xerox dominated the market for many years in this manner. Also, a company can build brand value or brand equity
2 Pages(500 words)Essay
Macro economics
A fall or rise on housing savings in UK can very influential, negatively or positively, on the UK’s domestic and nation economics. Household savings is a fundamental aspect influencing national
11 Pages(2750 words)Essay
Let us find you another Essay on topic Macro economics for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us