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

Macroeconomics-long run effect on budget cutting in the uk - Essay Example

Comments (0)
It has been observed that when the new Conservative-Liberal Democrat government came into power in 2010, the first thing it did was to cut the state spending to an extent, that has been estimated to be the highest post second world war. This project aims to understand the impact…
Download full paper
Macroeconomics-long run effect on budget cutting in the uk
Read TextPreview

Extract of sample
Macroeconomics-long run effect on budget cutting in the uk

Download file to see previous pages... One of the primary concerns of the governments in UK, both the previous Labour Government and the present government, has been to reduce the public borrowing to sponsor the expenditure of the government (Giudice, Kuenzel and Springbett, 2012). The agenda behind the reduction in the public spending is that it is believed that the economy will grow faster in the medium-term. The simple economics behind the fact is that if business corporations believe that the economy will grow in the medium-term then the confidence in them increases which raises their present level of investment. On the other hand the consumers increase their spending with the belief that the economy will grow in the future. However, the standard component of GDP can be represented as (Mankiw, 2011):
This implies that with reducing in spending by the government the total output of the economy falls. However, it is now an established economic convention that the level of output will increase up to a certain point with rise in government spending after which it tends to fall (Lilico, 2012).
If the government follows a contractionary fiscal policy, which implies a reduction in spending by the government then the magnitude of impacts of the same is different in case of an open economy and closed economy. A closed economy structure is one that can be described as an economy which involves in no trading activity. A closed economy is assumed to be self-sufficient and all the needs of the consumers are met from inside which eliminates the need of the economy to have any trading relations with the outside world. An open economy on the other hand is the one which has sufficient treading relations with the other countries in the world and there are no barriers to the development of the free market forces. An ideal open economy is the one that is characterized by ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Long-run U.S. Economic Growth
An increase in economic growth is supposed to raise the average standard of living of the people. While studying economic growth theory, it is important to differentiate between short term and long term ups and downs. Potential GDP in a nation is determined by the aggregate labor, capital and technology available and is often identified as the long term growth (Taylor, 125).
20 Pages(5000 words)Essay
Production in the Long Run
Most manufacturing companies fall under this class, for example, the motor vehicle industry and DVD players. In total product, it is difficult to measure the amount of output. With the average product, the total output divided by the output per capital employed.
8 Pages(2000 words)Essay
Macroeconomics - Quantitative Easing
This is facilitated by the private sector and banks by means of electronic money. The liquidity and funding in the money market increases by a growth in the money supply due to a rise in capital in banks and other financial institutions (Wieland, 2009). Quantitative easing is divided into expansionary and contractionary policies as well.
5 Pages(1250 words)Essay
Short-run Phillips curve & the long-run Phillips curve
Short-run Phillips curve & the long-run Phillips curve How do active and passive views of these concepts differ? The Philips Curves are fundamental to the study of economics. The Curves represent the relationship between inflation and unemployment rates and, they have cross relationships with aggregate supply curves.
3 Pages(750 words)Essay
Budget business PCs that run Vista
Nevertheless, still there are a number of high performances, inexpensive business PCs that come with both Windows Vista and Windows XP options. These are Dell OptiPlex740, the HP Compaq dc 5750 and the Lenovo 3000J115.
2 Pages(500 words)Article
Macroeconomics. Unexpected changes in the money supply
With other parameter configurations, the response of flexible nominal prices to a monetary disturbance is sufficiently large that the change in real money balances is small, as are monetary effects on the real economy working through the standard Keynesian transmission mechanism.
15 Pages(3750 words)Essay
UK Budget Hotel Sector
The discussion of the development of the UK budget hotel sector is important in giving inferences on how an enterprise grows into one sector whose purpose is to cater to a wide range of people. Its development which is one focus of the research is a relevant discussion that gives insights on how economic and social factors impact the development of an industry, such as the UK budget hotel.
8 Pages(2000 words)Essay
Long-run Determinants of Exchange Rates
For this purpose, a range of data was utilised from books, journal articles and the Internet resources. The paper presents an insightful study on the impact of various factors on exchange rates such as monetary policy, inflation, imports and exports, government spending, economic productivity and foreign reserve etc by utilising the research and studies conducted by different scholars [(Krueger, 1983), (Rodriguez, 1977), (Diulio, 1998), (Stockman, 1980) etc].
12 Pages(3000 words)Essay
Businesses in the Long-run
The business may successfully make short-run production plans that can only be accomplished within a particular size of the industry. However, in the long-run, production may be increased and the cost of production decreased by expanding the size of the industry.
6 Pages(1500 words)Essay
Discuss in detail the various objectives of macroeconomics policy explain the costs of failing to achieve those objectives
al. 2007). The Keynesian macrotheory was based on the premise that it is possible and desirable to control the levels of aggregate demand and unemployment. The monetarists believed that it is not necessary for
6 Pages(1500 words)Essay
Let us find you another Essay on topic Macroeconomics-long run effect on budget cutting in the uk 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