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 - Term Paper Example

Comments (0)
Macroeconomics Name: Course: Professor: Institution: City and State: Date: Abstract The paper takes into consideration the branch of economics referred to as macroeconomics. Macroeconomics just like microeconomics is an important concept in economics because it has various important concepts that are essential for economic wellbeing of any country…
Download full paper
Read TextPreview

Extract of sample

Download file to see previous pages... The paper concentrates on the issue of price stability and its impact to the economy Introduction Price stability refers to a situation in which the prices of goods and services in a country over a given period of time remains. It can also be best described as time when the retail index price is constant. The opposite of price stability is referred to as inflation. Inflation is an adverse macroeconomic element that is not acceptable in the economy. It is characterized by the unprecedented increase in prices of goods and services that results to making the cost of living to sour up beyond the purchasing power of various household (Pierson 20). It is the central role of the government of the day to ensure that only some small inflation, popularly referred to as mild inflation, is experienced in the society. When the level of inflation increases, it is a bad indication, which shows that the cost of living of the household has increased. When the cost of living goes up, the lower-class households are the worst hit. However, it is good to take note that some level of inflation in the economy is acceptable as it shows that there is some form of economic growth in the country Discussion It is every government’s responsibility to attain positive macroeconomic elements in the economy, and USA government is no exception. The United States has always strived to ensure that there is low inflation, low unemployment levels, high rate of economic of economic growth, and equilibrium in balance of payment. The subsequent paragraphs concentrates on the efforts and measures put in place by the United States’ government to tackle inflation. Notably, inflation takes various forms, which include wage inflation, cost-push inflation, sectorial inflation, demand-pull, and pricing power inflation. Demand-pull is a type of inflation that is caused by excess demand of good and services in the economy, which causes the prices of goods and services to increase. On the other hand, cost-push is a form of inflation that is caused by increased cost of production. Such increased cost of production compels producers to pass the cost to consumers in terms of high prices (Pierson 20). On the other hand, wage inflation occurs when people are paid more salary, hence causing their disposable income to increase. With increase in disposal income, the increase in purchasing power is inevitable. The consumers tend to spend more in such circumstance leading to increase in the prices of goods and services. Essentially, there exists several level of inflation, which includes mild inflation, moderate inflation, hyperinflation, and stagflation. Mild inflation is good for an economy; in fact, this is the primary objective of the USA’s government, since it is mandated to maintain a low inflation rate of not more than 3 percent (Mills 112). Maintaining low inflation is a tasking procedure, which requires balancing of many and complex macroeconomic policies. Inflation is measured as a yearly rate of change in the retail price index. In order to achieve price stability, the rate of inflation should be maintained at zero. This is only theoretical and cannot be practical in the real economy. Some level of inflation is good for the economy as it signifies growth in the economic performance besides showing that owners of factors of production are being rewarded for their investment efforts. Mills ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
This is the macro perspective which is embedded in its sociological genesis and refers to the fact that there can be considerable similarities in people’s social attitude- a behavior that ignores the apparent differences among the individuals. On the contrary, when more focus is maintained on aggregate characteristics, then it is probable that the individual differences get masked which are important attributes of an individual.
1 Pages(250 words)Term Paper
Exchange and markets
External objectives are with respect to the rest of the world like avoiding balance of payments deficit, preventing exchange rate fluctuations, and maintaining a positive balance of international trade. It is not always that all of the above aims can be maintained simultaneously.
10 Pages(2500 words)Term Paper
Macro and Micro Economics: Comparative Case Studies
The indicators can be local, directional or timed. The most common indicators of the economy are; Growth Domestic Product, Growth National Produce and Purchasing Power Parity.
4 Pages(1000 words)Term Paper
Intermediate macro on the effect of inflation on exports and imports
Inflation has a significant impact on output rendering significant costs for economy, consumers and producers. Similarly, inflation makes productive investment to drop since profitability plunges, speculative investment increases, which possess a negative impact on employment, output, and income.
7 Pages(1750 words)Term Paper
John Maynard Keynes contribution to macro economics
Keynesian general theory of macroeconomics states that in the short run, economic output is strongly influenced by aggregate demand. Keynes also said that the total economy expenditure is not a reflection of its productivity. Keynes states that in order for aggregate supply to meet aggregate demand, the goods supplied should be those that are in demand.
8 Pages(2000 words)Term Paper
Effects of Taxation on Macro & Micro economics
Term paper on Effects of Taxation on Macro & Micro economics Abstract The Overall the study of economic environment is divided into two categories, microeconomics and macroeconomics. The micro-economics deals with individual units while the macro-economic deals national or international economy as a whole.
5 Pages(1250 words)Term Paper
Microeconomics article review
The percentage of the labor force that was unemployed for five weeks or less did not grow much during 2007. Ironically in the aftermath of the recession which occurred between 2009 and 2010 after five weeks of unemployment people looking for jobs ended up filing for more unemployment benefits.
3 Pages(750 words)Term Paper
Strategic management final exam bachelor degree
The statement is valid in the short run because the macro environment consists of a business’ external environment that an organization lacks control over as compared to microenvironment that can be easily controlled by a
4 Pages(1000 words)Term Paper
Starbucks: Short version of the term paper proposal assignment
With the concept of environmental forces alone, there are different ways in which sub-concepts are used within Starbuck. Golovatchev,
1 Pages(250 words)Term Paper
IP 5 - Macro
These policies are aimed at ensuring the new industrialized countries sustain their economies. The essay will focus on Singapore and Hong Kong with the aim of analyzing the World Bank policies on new industrialized countries.
4 Pages(1000 words)Term Paper
Let us find you another Term Paper on topic Macro 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