Download file to see previous pages...
The government reduced its expenditure on military equipment and diverted more funds in other government expenditure on other sectors of economy. The graphical presentation of the opportunity cost for government expenditure for less military purchases to more public goods shows the
...Download file to see next pagesRead More
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