The number of unemployed is rising in most economies, Andy Kilmister (2008). Among developed economies, “the number of unemployed has more than doubled in the United States of America since the beginning of…
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Unemployment rates in transition economies and developing countries have also moved higher, “in particular in the Commonwealth of Independent States (CIS) and Central and South-eastern Europe” (Andy Kilmister, 2008).
Economic theory: According to Andy Kilmister (2008), in the years leading up to the economic crisis that began in 2008, the global economy showed strong Economic Growth (EG). Over 2001-07, real world gross domestic product (GDP) grew by more than 3 percent a year, exceeding annual growth of 2.7 percent during the 1990s. The large influx of money into the Western financial system enlarged the “supply of funds available for loans and investment relative to the profitable opportunities available” (p. 67). This consequence, combined with “insufficient government financial regulation and supervision, resulted in investors and banks making riskier loans, such as for subprime home mortgages and mortgage refinancing in the Unites States” (Andy Kilmister, 2008).
Interest on the article: The world financial crisis is a recent world effect, which affected almost all countries in world, Andy Kilmister (2008). It impresses me most because, to come out of the crisis, economic knowledge was needed to salvage the situation. Economic theory played a major role, “for instance the use of interest rates to regulate the cost of borrowing from financial sectors” (p. 23). Also, the use of fiscal policies, for instance stimulus packages in the financial and non-financial sectors (Andy Kilmister,
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Some economists are even anxious that the US's may have lessened their love of property ownership. It looks that boom years had never occurred. Paul Dales, US economist at Capital Economics says that "You would have to go back to the Great Depression to find anything similar.
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.
Does this production possibilities curve exhibit the law of increasing opportunity cost? Briefly explain. (10 points) GRAPH OF PRODUCTION POSSIBILTY BETWEEN AUTOMOBILES AND FORKLIFTS Fork Lifts 80 70 A 60 B 50 C 40 30 D 20 0 E Automobile 0 10 20 30 40 50 60 70 80 Source: Author The production possibility curve above represents two types of goods namely; fork lifts and automobile.
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.
The businessmen are hesitant to hire and invest whereas the consumers are hesitant to spend because of uncertainty about their prospects. When an investor has to decide whether to invest in a new product or other facility, with the success of his decision dependent on future revenues and costs, there is bound to be an irreducible element.
flation rate constantly within a narrow band will involve quite a bit of short-term variation of the interest rate lever (and, consequentially, the exchange rate), and policy will be jerking output around
Central banks may regard their sole objective as inflation, but it seems
The article documents the past focus of the federal government on inflation as the sole and greatest cause of macroeconomic problems. In recent times however it has become apparent that the problem is no longer inflations but more to
The UK economy is seen to be gradually emerging from the situation of economic turmoil. The attention of the government is now shifting to make it more sustainable, resilient and stable economy (Crown, 2014; OECD, 2013). In