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This Business Cycle Dating Committee also identify peak and troughs on the basis of pre-defined definitions of recession and expansion (NBER(a)).
The definition of recession, which is used by the
The author states that the economic Indicators have different relations with the Economic Business Cycle. They are either Pro cyclic, Counter cyclic or Acyclic in nature. A pro cyclic economic indicator shifts in the same direction as the current market situation. Hence, if the financial system is functioning well, this number is increasing.
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The main finding included the fact that inter-jurisdictional competition is a vital element of the mechanism. The key players in Tiebout’s model are individual citizens and governments. business firms are not an explicit part of the model. It was meant to be applied to local governments and to a lesser degree, to state governments.
The plaintiffs alleged that Microsoft abused monopoly power on Intel-based personal computers in its handling of operating system sales and web browser sales. The main issue in the case was whether Microsoft was allowed to bundle Internet Explorer web browser software with its Microsoft Windows operating system.
The gross domestic purchases had a sharp increase in the price index and this ensured prices paid by U.S residents by 2.0 percent in the third quarter, 0.1 percent more than the second estimate. The real personal consumption saw an increase of 1.7 percent in the 3rd quarter, and this was an improvement from an increase of 0.7 in the second
The importance of these two policies has been a great debate between the monetarists and the Keynesians. In view of monetarists, monetary policy has greater influence on economic growth,
n be initiated to achieve different objectives; control inflation, improve the living standard of low income groups, safeguard the interests of the consumers and setting a wage limit below which it is illegal to pay workers among others. Fixing the minimum wage that a worker is
Despite the fact that the debt crisis is directly happening in the Eurozone, its impact can be felt by the rest of the world economies without the Eurozone by virtue of being connected through trade. As proposed by the Mundell-Fleming model, it is clear that open economies are subjected to the exogenous effects of international economies.
However, there are myriad of barriers to this international trade that can be categorized as social, cultural, political and economic problems. Social barriers are centered on welfare of a particular community and
Privatization is a process in which government functions and responsibilities are transferred to private entities. The transfer can be either a complete one or it can be a part of a government function.
Privatization is not new to United
sticity of demand include the price and availability of substitute goods, the percentage of income (that a person spends of a particular good in question), whether the goods are a necessity of a luxury, and the duration of the goods.
Cross elasticity of demand is a economic
The changes in market conditions, health factors, environmental reasons and transitions in the situation of raw materials/inputs influence the demand and supply of products and goods in one way or the other (Mankiw 2011). The shifts in demand and supply curves are related
This fulfills the law of supply which states that “when the price of a product rises and other things remain constant, the quantity of the product supplied will rise as well (McEahern, 2008, p.78). b) Slope of the demand function is -2 indicating that for every increase in the price for the good, demand decreases by twice the quantity previously demanded.
Such a trend is found in the income tax system where people pay taxes according to their income. The government has also lowered the starting rates of income taxes so that people can have more of their income for their own consumption (Riley, 2006). Overall this beneficial tax system can help to reduce poverty by increasing individual consumption.
In particular, a certificate in financial economics would be of tremendous use in pursuing a career in economics. This is the result of the emphasis of this certificate program on the practical application of economics. In addition, there are several competitions in the area of finance, such as the Simulated Trading Competition, which provide a unique opportunity to the serious participant.
The US economy experienced a hard-hitting recession that placed the economy at another worse off condition since the occurrence of the great depression. This situation was an indication of how interest rates and the real estate market play a central role in determining the performance of the economy and its welfare over time
Perfect competition is a free market where the prices of various commodities are determined by the forces of demand and supply. In a perfectly competitive market, there is free entry and exit of goods and services. Perfect competition is important in that it provides an ideal situation that makes it possible to analyze markets.
According to the law of demand, during the decrease of price consumers obtain bigger quantity of the product. However, the reaction’s degree of customers
Several developing European countries, marginal market participants and various commentators predicted that, the disaster would nearer or afterward certainly crop up. According to the author, the current debt restructuring is
The Federal bank responded by instilling large amounts of money into the financial market so as to save the industry. However, in 2008 the stock market globally crashed and became very unpredictable. This has profoundly affected the economy of various countries even the developed nations forcing the government to cope up with coping strategies.
The Dubai macroeconomy is so big and the macroeconomy that surrounds the EMAAR is even much wider since it as well deals with foreign trade. The economic situation of Dubai is that which is most able to provide its companies with technical expertise, both skilled and unskilled labor, the large population experienced in Dubai provides this.
There would be need for constant evaluation of the performance of education sector as whole in order to measure the returns to this investment of $20 million.
The impact of the book to medical schools is that it enforced the policy of increasing the admission requirements and graduation standards (Kenneth, 193-196). Many schools in America failed to meet the requirement from the report, which led to most schools to be
The developing world presents a topical issue in the subject of economics considering the disparities evidenced in such countries. The objective of entirely all
Before Simon Kuznets, most economic theories of development only factored in economic costs and used assumptions such as technology and preferences of consumers being constant. With these assumptions, the framework of such economic theories became short-term. According to Kuznets, Modern Economic Growth is characterized by extensive use of new technology and science in the production process.
Author also argues that the overall cost of finding and operating new mines especially for copper has increased thus making it relatively difficult for the established miners to continue to
Both antitrust and patent laws are vital in economies. Whereas patent laws attempt to promote invention and innovation through providing exclusive rights to inventors and innovators of their works, antitrust laws attempt to prohibit anti-competition within an economy that usually results into monopoly.
Monetary currency involves impaction of the government on value of currency by involving a vital bank such as the Federal Reserve Board in order to gain control over value of currency and cut down on inflation. This way, the bureau changes the way
The author states that the most valuable investment most American families own is their home. The housing bubble of 2008 caused many Americans to lose thousands of dollars in equity value. The housing market used to be so good that many Americans bought a second property for investment purposes.
Economists believe that the economy of the United State is being sucked into what they refer to as an “economic black hole”, a state requiring the immediate intervention of economic specialists; otherwise, the economy might never recover. The fact that the economy has been experiencing fluctuations makes people believe that the nasty recessions have been overcome.
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The competition that previously used to be conducted between nations has been lowered by this disruptive change in technology to competition between corporations, before the year 2000, to its most basic level today, which is competition amongst individuals. The second argument is that America is in a state of crisis.
The paper shows that there is tension between cooperation and self-interest. If the entire firm perimeter their output, the price is high, but then firms have an incentive to expand production. Oligopoly is a market structure characterized by a small number of moderately large firms that dominate an industry.
Technology has a direct effect on the performance of the business. The company is involved in the design and manufacturing of wireless solutions for the communication market. This makes it more dependent on the use of technology. It is clear that the changing technological environment has brought threats and opportunities for companies.
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this paper covers major theories that policy makers and economists should take into account in order to steer development in their respective countries. Major theories that are discussed include. Harrod-Domar theory, Neoclassical Growth theory, Theory of surplus labor as well as
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A country’s position in international markets and gains from trade depend a lot on its external policies. The exchange rate has been important for determining the price of imported goods with respect to domestic goods. Hence it needs to give sufficient attention as well as the importance to the exchange rate policies.
Australia is still one of the few countries in the globe that has recorded a steady positive economic growth. This has been attributed to various factors that include a democratic government that steers forward the development, tourism industry that is one of the key foreign exchange earner and other cultural attributes that include religion, etc.
Urbanism suggests that our social infrastructure is based on communities and positioned in a manner that makes them more efficient and suitable to changes in the population. This change in the manner in which society is organized occurred over a period of time when cities became more attractive to job seekers.
As the quantity of crude oil produced becomes less in comparison to what is demanded, then the law of demand acts in a manner that prices shoot up. Due to the high levels of crude oil demanded, producers raise their levels of production so as to maximize the returns being derived from the sales of crude oil. Below is a graphical illustration of the behavior of demand and supply.
You have just arrranged a __________.
Q4b. Suppose the exhange rate is $0.70 per franc. At this exhange rate there is an oversupply of francs which leads to a decrease in the
Every activity in the value chain can readily increase the benefits that consumers derive from the firm’s product while each technique can add to the expense that the firm incurs in production and marketing of the product. By performing these
e forces approach fails to determine reasons behind a number of firms sustainably makes profits in a zero margin operating perfectly completive market and industry. Therefore, a comprehensive approach should involve analyzing aspects that make firms different.
Limitations and
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Nowadays the diets are rich in grains, fat, salt, sugar but it lacks nutritional content, and this will contribute to various diseases. In addition, as production increases from small scale to large scale, industrial factories are introduced which brings in the air, water and soil pollution and contamination.
Sellers become the “boss” as they can influence the market with their self-interests which most of the time is in conflict with the interests of the consumers, the market is the agent and the consumers or buyers become the servants. This may result in inefficient allocation of resources and consumers changing their behaviors towards the market.
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According to Joseph E. Stiglitz, globalization and its discontents is a succinct, distressing and inexorable reflection of the global economic policies of the World Bank, International Monetary Fund and the World Trade Organization. He uses personal experience as the chairman of the council of economic advisors under the presidency of Bill Clinton from the year 1993.
Besides, the implementation of such a monetary policy would see a dramatic decline in the quantity of Chinese banking system reserves. More banking deposits with the Central Bank will extend the Central Bank credits which would in return create money multiplier effects in addition to posing significant balance sheet impacts.
It was also able to make its product rare as “diamonds are forever”. The uniqueness of the product is one of the requirements for a firm to be considered a monopolist. This means that monopolist’s product should be scarce, rare, or unique in the sense that it has no close substitutes. This makes it possible for a monopolist to control the market.
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Immigration has been one of the shaping pillars for the United States as a nation, probably more than any other economic, social, or political process. In the past, several transformations concerning the country’s social and economic landscapes, driven by immigration, have occurred in distinct historical times.
These range from earthquakes and tsunamis to typhoons, floods especially places receiving heavy rains, volcanic eruptions, mudslides, hurricanes and extensive earth movements, to droughts and famines. Disasters have far-reaching effects on various aspects including loss of lives and livelihoods, destruction of infrastructure, disease out breaks, destruction of social and economic structures in their wake.