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

National Economic Policy macroeconomic - Essay Example

Comments (0)
Summary
National Economic Policy: Macroeconomic Name: Course Name: Instructor: Date Question One Policymakers in all economies should ensure that they make the best decisions regarding their economies so that positive results may be attained. The policymakers always make these decisions depending on whether the economy is closed or open.  They should always ensure that the best policy mixes are put in place so as to get the optimum results possible.  Assuming that policy makers in a closed economy want to increase output without changing interest rates, there is a policy mix that I can recommend so that they may achieve their objective with ease, rather than gambling with the many options which are…
Download full paper
GRAB THE BEST PAPER
National Economic Policy macroeconomic
Read TextPreview

Extract of sample
National Economic Policy macroeconomic

Download file to see previous pages... This increase in money supply will lead to an increase in output, income and employment. This will be        caused by    the fall in interest rate which occurs after the LM curve shifts to the right (Young & Zilberfarb, 2000), as reflected in the IS-LM curve below. It is worth noting that if money supply is increased, while interest rate is held constant, a higher level of income is needed to ensure    that there is a corresponding demand level for money to the supply. This as mentioned earlier moves the LM curve to the right. The increased income and constant interest rate where the money demand and supply equal each other is seen at the far right of the curve. In case the inflation rate at one point of constant interest rate makes holding money costly, thus few decide to hold it. This calls for rising of income at a certain real interest rate in the universe so as to put the needed money to be held thus maintaining the economic equilibrium, which can be traced to the right of the IS-LM curve (Carlberg, 2000). The components of GDP will be affected as a result of applying this policy. First of all, the aggregate demand will increase. This increase in demand refers to the increase in the number of goods required by consumers in the economy. This is usually a very good thing for triggering an increase in output in the economy. Especially in the short run, this usually raises the production of the economy which is very desirable. This policy will also have a negative effect on employment. One of the reasons for the increased unemployment is the fact that producers react to the high demand by government thus taking production to a higher level. The increase in production demands that labor increases. The people who are hired earn money thus are able to spend in larger amounts than when unemployed. Question Two  Expansionary fiscal policy A variety of fiscal policies which leads to a rise in government spending, a shrink in taxes, or a swell in transfer payments is applied to counter the mishaps of economy contraction. The objective of expansionary fiscal policy is to bridge a recessionary gap, ignite the economy, and reduce the unemployment level. Expansionary fiscal policy is sometimes backed by expansionary monetary policy. Taxation Taxation is the major fiscal policy tool that works quickly to correct an ailing economy. Basically individual income taxes levied by the state; however other taxes are also applicable. Taxes are the spontaneous levies that the government charges on the entire the economy to create the proceeds required to provide basic goods and services and to facilitate other state functions. Personal income levies are precisely the taxes gotten from the earnings received by individuals in each house hold. Expansionary fiscal policy works by either a decline of the income tax levies or an instant rebate of levies previously collected. The decrease in taxes empowers the each household with extra per capita earnings that can be utilized for spending costs, which then ignites cumulative production and employment and translates ...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
Golden Rule of Capital Accumulation and Macroeconomic Policy
This is the neo-classical model of economic growth. In 1946, Robert Solow and T. W. Swan independently developed this exogenous growth model. This steady state rate of growth is consistent with the economy’s natural rate of output. Policymakers use this model to understand why different countries grow at different rates and this is the main relevance of this model.
6 Pages(1500 words)Essay
National Economic Policy (macroeconomic)
The high terms of trade contributed in increasing the level of real income and reduced the rate of the inflation within the economy. The terms of trade can be defined as the ratio between export prices and import prices. A rise in terms of trade will enable the country to buy more imports with fewer amounts of exports.
5 Pages(1250 words)Essay
MACROECONOMIC
The revenue of the government can be arranged through a variety of ways like taxation, sale of fixed assets, borrowings and consumption of fiscal reserves. The government try to use the fiscal policies to stimulate the level of aggregate demand in the economy (Kopcke, Tootell and Triest, 2010, p.
3 Pages(750 words)Essay
Macroeconomic Policy Objectives
Macroeconomic Policy Objectives. All governments have aims and targets for their respective economies. These are referent to the aims and goals of the policy pursued by the government, which differ from macroeconomic instruments. They are the means for governments to achieve these macroeconomic aims.
7 Pages(1750 words)Essay
Economic Policy of China
In 1978 China adopted a more liberal attitude towards the two way trade. China's exports and imports increased from approximately US$15bn in 1975 to US$38bn in 1980. In 1985 it grew to US$70bn, and by 1990 it was US$115bn, this expansion by 1999 saw trade worth US$360bn.
5 Pages(1250 words)Essay
Economic Policy
There are also policies that increase the economic welfare that applies locally and from wider perspectives. The government has the authority over the political units and ruling power in the society. The government has the functions to make laws, to adjudicate and to influence all the administrative decisions.
6 Pages(1500 words)Essay
Macroeconomic Policy
For example there are different types of cotton; jute, hides and skins are supplies to the producers of cotton textiles, gunny bags and shoes respectively. At the same time manufactured goods, which have been produced with the raw materials, are supplied to the consumers.
5 Pages(1250 words)Essay
Macroeconomic Policy Essay
Different theories have sought to explain the reasons for this cyclical behaviour. One of the leading theories holds that productivity shocks contribute significantly to these fluctuations. This article briefly examines this theory closely and gives an independent conclusion.
2 Pages(500 words)Essay
Macroeconomic
The government’s efforts at curbing inflation have borne some benefits, though it should do more should be done since the rate of change in inflation is not directly reflected in the
12 Pages(3000 words)Essay
Macroeconomic
The article addresses each of these issues and what Pres. Barack Obama must do to achieve good results together with the people who might be able to help him. Fiscal cliff, Tomasky suggests, will most probably be responded to with the impending tax increase
1 Pages(250 words)Essay
Let us find you another Essay on topic National Economic Policy macroeconomic 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