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 Econ 3 - Assignment Example

Comments (0)
Question 3 A good standard of living which determines the high and growing gross domestic product, GDP is dictated by capital. Capital is one of the factors of production and is vital for the production of goods and services. A college degree will act as capital more, so human capital since the holder will have attained skills and knowledge in the process of training and learning in school (Mankiw, 2012)…
Download full paper
Macro Econ 3
Read TextPreview

Extract of sample
Macro Econ 3

Download file to see previous pages... This can be illustrated by the fact that there will be a small change in production because the workers already have enough capital for production. This is evidenced by the fact that capital is put through diminishing returns, a situation where output decreases as the amount of capital is increased (Mankiw, 2012). The higher rate of saving does not increase the growth rate indefinitely since more capital is not put to use in helping the country. Instead, as income rises, the growth finally slows down. All this is due to the effect of diminishing returns to scale, which affect the growth rate in the short-term and stabilizes it as income increases. Question 4 Investment is a process through which the government can increase its factors of production for future use, which can be done by improving current resources to produce more capital (Mankiw, 2012). Conversely, national saving is the amount of resources that remains after the deduction of consumption and governments purchases in an economy. The relationship between investment and national savings can be illustrated by the equation: Y=C+I+G+NX; where I represents investment, C is consumption, Y is GDP, G denotes government purchases NX is the net export, given by exports less imports. Provided that no other factors act on the economy are altered, for example the represented government does not borrow any money outside or doe not engage itself in international trade, the above equation will have some changes and the outcome is; Y=C+I+G, which happens because the net exports remain constant. The above equation shows that GDP is derived from the sums of consumption, investment and government purchases, and investment can be obtained the equation by subtracting C, (consumptions) and I, (investments) on both sides, Y- C-G = I The above results shows that investments is equivalent to national savings provided that the left side of an equation represents total income resulting from the payment of income and government purchases. Hence it shows that there is a relationship between national savings and investments. Productivity Growth Question 1 The FRBSF economic letter (2009) indicates that before 1995, the main contributor of productivity growth was human capital and the physical capital, but after 1995 this changed to Information Technology (IT) since productivity started rising in the mid 1990s in the firms that were using IT. The changes come about due to rapid transformation of information technology and its use in many sectors for the transfer of information, computers and semiconductors. The use of information technology increased the labor productivity rate which led to a higher productivity growth, which is the reason behind the difference between the year 1995 and earlier years where the productivity growth rate was low. Question 2 Based on the author’s observation, it is possible that the US economy will, in future, still be the largest and most productive (FRBSF, 2009). This observation is due to the fact that the productivity growth rate between 1995 and 2000 was due to the implementation of Information Technology which had a bigger share of investment and the US government had invested fully on it. Based on the different authors in the symposium, the productivity rate of 2% per annum will be sustained ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Macro Econ
Others point to the fact that markets are not perfect. Consider both viewpoints and respond to both sides of the issue with your viewpoints. In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.
1 Pages(250 words)Assignment
This assumption I can base on the value chain up to the time the book is delivered to me as a consumer. With books printed in the United States, the price of it based on the prices the online bookstore indicates I can assume to be lower. This is
3 Pages(750 words)Essay
Since a gold standard requires that the value of currency be fixed in terms of gold, for example an ounce of gold being worth $20 and 60 cents, then gold had to be sort and brought to the central bank so that it
3 Pages(750 words)Assignment
Macro Econ
Increasing demand of goods and services and limited resources makes the phenomenon f scarcity necessary in the study of economics. Economics implies that people will have unlimited wants and needs and due to the scarcity of resources, people are forced to choose the needs
2 Pages(500 words)Assignment
increases or decreases in prices), evolution of interest rates, as well as changes in the income available. The answer depends on the
3 Pages(750 words)Assignment
The stock market of American S&P 500 given in the graph below, predicts recession since the prices of stocks were stable and steadly growing until 2002-2003 and also in the year 2008-2009. These years were characterized by
3 Pages(750 words)Assignment
Frictional unemployment is a form of unemployment that occurs due to the voluntary job search by the employees for better opportunities. Frictional unemployment occurs as the jobseekers tend to look out for the
2 Pages(500 words)Assignment
Macro Econ Discussion Questions
However, at this price, the total market demand is 15 gallons per day. There would be a market shortage of 15-12 = 3 gallons per day. The fourth of July fireworks might be considered a public good since no one can be
2 Pages(500 words)Assignment
Macro exam 3
Land, labor and capital are the factors of production also used in the development of the model. Taking an example of an automobile, the household buy the finished product. So the household will buy the automobile from the
3 Pages(750 words)Assignment
ECON 337 3
For instance, the global integration of India and China is not reflected on the common masses that still live in poverty (Bardhan 24). The majority of the citizens are below the expected
5 Pages(1250 words)Assignment
Let us find you another Assignment on topic Macro Econ 3 for FREE!
Contact us:
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