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

Macroeconomic - Essay Example

Comments (0)
Summary
International business is at its zenith when almost all the economies in the globe are open. Business cycles fluctuations are common to almost all the economies in the modern world. This essay will through light on the Global Financial Crisis that had taken place in 2007-2008…
Download full paper
GRAB THE BEST PAPER
Macroeconomic
Read TextPreview

Extract of sample
Macroeconomic

Download file to see previous pages... International business is at its zenith when almost all the economies in the globe are open. Business cycles fluctuations are common to almost all the economies in the modern world. This essay will through light on the Global Financial Crisis that had taken place in 2007-2008. The essay will discuss the impacts created by this financial crisis on different economies in the world. This part of the essay will concentrate on the growth of real Gross Domestic Product, inflation rate and unemployment rate in Australia, United States and United Kingdom. Answer 1: Figure 1: Real GDP, Unemployment, and Inflation Rates of U.S. (Source: ABS, 2013; BLS, 2012) The above graph shows the real GDP, inflation rate and unemployment rate in United States. Figure 2: Real GDP, Inflation and Unemployment of Australia (Source: DFAT, 2013; RBA, 2013) The above graph shows the real GDP, inflation rate and unemployment rate in Australia. Figure 3: Real GDP, inflation and Unemployment in United Kingdom (Source: DFAT, 2013; BEA, 2012) The above graph shows the real GDP, inflation rate and unemployment rate in United Kingdom. Answer 2: The above three line graphs show that global crisis has negatively affected all the three economies in the world. It is clearly visible that due to recession in 2007 to 2008, the real GDP of all the three economies has shown a sharp fall in 2008, 2009 and 2010. The recessionary trails in the economy were responsible for the low velocity of circulation of money in the economy. With fall in purchasing powers, the aggregate demand for goods and services has been low in the three nations. Thus, although there has been an overall growth in real GDP but the global financial crisis has lead to a fall in GDP in the short run. The crisis in the economy has reduced both the income and output levels. As a result, the unemployment rates have also augmented. Economic crisis is often associated with inflationary trails in the economy. Scarcity causes price rise in almost all the goods and services. However, with time all these three developed economies are recovering from the extreme crisis. Answer 3: A nation must always formulate policies of growth in a way that helps it to use the benefits of its core competences. In the modern era almost all the countries in the world are open economies. International trade is at its peak. At this juncture it is always advisable for a nation to produce only those goods and services, over which they have competitive advantages. This would help the nation to allocate its resources in an efficient method. While making resource allocations, the state as well as the business enterprises will always find the stock of resources to be scarce, when compared to the demand in the economy. The country in Africa is a labour surplus nation, then the public as well as the private sectors should stress on labour intensive methods of production. However, that does not mean that the nation would not undertake technological inventions. The state should adopt capital intensive techniques but not at the cost of its labour requirements. Maintaining the labour concentrated methods of production, both public and private sectors of the country would be able to generate more employment for people. A higher employment will increase both income and purchasing power of the people in the country that would ultimately help in raising the aggregate demand of the nation. Rise in aggregate demand will finally help in augmenting the GDP of the country. For economic development, technological inventions are always in race with depletion of national resources. Thus, the government of the country must adopt sustainable technological improvements to protect the rich natural reserves of the nation. As the country concerned has a free or Laissez faire economy, the government should not make unnecessary interventions in the matters of economic affairs because that would involve a fall in the net social welfare. Free forces of market demand and supply should be allowed to set most of the price levels ...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
Macroeconomic Situation
It has been found that the economy of the United States has rescued itself from the recession and has begun to rise since the second half of the year 2009. It was expected that the economy of the United States in the year 2010 would grow by 2.9 percent and in the year 2011 it would decline to 2.5 percent.
2 Pages(500 words)Essay
Macroeconomic
The level of real income rose as the result of high terms of trade as well the inflation rate got reduced. The ratio between the prices of exports and the prices of imports are regarded as the terms of trade. With high rate of terms of trade the country will be able to obtain higher imports with relatively fewer amounts of exports.
6 Pages(1500 words)Essay
MACROECONOMIC
erve Bank of Australia (RBA) was established in the year 1959. The creation was put into place by the reserve bank act 1959. The act lays down the roles of these bank a puts it that this is not a profit acquisition bank. The bank introduction has seen many improvements in the economy of Australian.
4 Pages(1000 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 theory
What explains the divergence And perhaps equally important, what conditions either lead to further divergences or produce convergence North (1990, pp. 6-7). In the context of the present paper, the above questions have two implications. First, what macroeconomic policy-mix is conducive to economic growth Second, why do governments of some countries adopt the optimal policy mix and the others do not There has been extensive research into the first question with regard to open developing economies (see for example, Little et al., 1993; World Bank, 1987).
3 Pages(750 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
Macroeconomic
The consumption levels and the rate of GDP is even increasing but at the rate of which a tortoise travels, this is because of increased oil
1 Pages(250 words)Essay
Macroeconomic Analysis
The Uncles idea is very fine as it would diversify his income base of the coming day’s but there is other economic possibilities provided by the feds which would affect the demand and supply of the uncle’s properties. Through collection
2 Pages(500 words)Essay
The Cold War between the US and the Soviet Union, Al-Mujahedeen, and Afghanistan War in the Period of Cold War
It is during these years that there was a major difference between the two superpowers, because of ideological differences. That is, Soviet Union supported communism, while the United States supported capitalism. Tsouras (2003, p. 33) asserts that the
9 Pages(2250 words)Research Paper
Case study, starbucks corporation
In this paper, we will be looking at what Starbucks strategy is and evaluate the strategy. Furthermore, the discussion will also expounds on the
3 Pages(750 words)Case Study
Let us find you another Essay on topic 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