Macro & Microeconomics Essays

Another last task of the paper is to define the so-called equilibrium GDP. In our opinion, one of the most appropriate definitions of the term “equilibrium GDP” is the following. Equilibrium GDP is the output level at which the total amount of goods produced, GDP, is just equal to the total amount of goods purchased.

This caused a problem in the U.S. oil supply. The U.S. oil dependence on other countries has significantly increased over the past decades. This should have been just fine. However, the problems lies in the fact that while more and more of the U.S. oil supply is being imported, the suppliers are becoming more and more from “politically and economically unstable” nations (p.3).

The government of Australia works with the Reserve bank in managing fiscal and monetary policies in the country. The bank was created by parliament in 1960 under legislation known as the Reserve Bank Act, which was proposed in parliament in 1959. The Reserve Bank acts as the central bank of Australia and manages the monetary policy in the country.

This paper primarily focuses on comparison of various major economic factors, that characterizes development patterns in China and the United States. These economic factors identified for comparison include labor force, household income, poverty line, unemployment, currency exchange rates, GDP per capita, exports, GDP, imports and others.

Despite the objections from some quarters on charging of interest, the major issue relating to usury relates to the moral administration of the interest. This means that the concern tilts towards charging of unreasonable interests, instead of generally condemning interests.

Hansen is known to have developed a technical econometric model to deal with the world’s difficult questions. In his research, Hansen has applied important economic concepts to study the primary determinants of security market prices, savings and consumption.

Differences in both the national spending and the current account imbalances are regarded as variables affecting both the short-run and the long-run deviances. The equilibrium of the real exchange rate may change for various reasons in the long run such as wealth effects and productivity effects (Rogoff 1996, pp. 647-653).

The borrowing of Spain has increased drastically in past few months and this has reduced the investors’ confidence in the economy making the situation worse for the government since there is less investment and savings in the economy.

The company’s performance has remained a casualty as the FTSE 100 wafted lower for a second straight day. The company’s expectations have been compromised ahead of release of full- year results that sent its B share 2 percent lower (Elder, 2012). The major forces driving the demand for oil include lower refining margins, higher upstream maintenance costs, exploration write-downs and a weak European gas market.

A murder occurs when a person who commits the crime is of sound mind, alive, and has an intent to kill. Manslaughter can occur with intent but only where the partial defense can apply, like loss of control. A death that results from grossly negligent conduct is also considered manslaughter as well as a death that results from an illegal act involving harming another person.

Rival firms in an oligopoly match each other’s price cuts but do not match each other’s price increases. Competition in an oligopoly primarily takes the form of advertising and product differentiation. There are a lot of barriers to entry in an oligopoly like economies of scale, product differentiation and brand loyalty, mergers and takeovers etc (Slomon 174).

United Arab Emirates (UAE) has established many Free Trade Zone Areas in order to provide an incentive for businesses to be located in the region. Free trade zones were originally created targeting foreign investors so as to promote foreign trade. They are areas where certain special laws do apply with respect to income repatriation, taxation, ownership, recruitment of labor, and value addition.

This process of unifying European currency started back in the aftermath of World War II and progressed gradually for over 60 years. Critics were so skeptical on the Europe’s idea of monetary unification claiming that Europe was not close to optimal monetary union.

On the other extreme is the monopoly, a single firm in the whole industry hence there is no competition (Sloman 2007). Theoretically a perfect competition is possible but practically a perfectly competitive market does not exist. Properties of a perfectly competitive market include: 1 Consumers believe the products are homogenous 2 Firms are free to entry or exit the market 3 Buyers and sellers have perfect knowledge (buyers know the price charged by sellers and sellers know about the number of buyers in the market) 4 Minimal transaction costs- the expense of finding a buyer, in case of a seller, or vice versa for a buyer and making a trade transaction are almost negligible (Perloff 2003).

Sustainable development and renewable energy use share an intimate connection. The changes in climate are the topic of the time. The primary and major emission gas for Greenhouse Gases is carbon dioxide. When carbon dioxide goes into the atmosphere and changes the weather conditions, bio-diversity will decrease through an increase in temperature.

Official cash rate is the rate of interest set by the Board of the Reserve Bank of Australia which is charged on the overnight funds that are borrowed or lent between financial institutions. This implies that it is the rate which is charged by financial institutions in Australia’s banking sector to other banks for overnight loans.  

Planet’s most populated country, with a population of more than 1.3 billion, and the second largest country by land area, China has over the past few years also marked its importance to the graph of the global economy. The people’s Republic of China has undertaken tremendous growth during the last three decades.

It will also focus on comparing the perfect market with the monopolistic market and the assumptions related to such a market, i.e. the number of firms in the market, types of products offered by each firm, entry and exit to the industry, and firm’s influence over price. Supply and demand is the main concept on which the whole study of economics is based.

Market structure – This section analyzes the characteristics of the market that exists in the US pharmaceutical industry as well as comparison of the US market with other world markets. Producers and suppliers – This part discusses major producers and suppliers of pharmaceutical products in the US market and their performance by use of sales, R&D expenditure and net income as major indicators.

In the United States of America, the minimum wage is constructed around a flat hourly rate where the law specifies the minimum amount of pay to be given on an hourly rate. This law is called the Federal minimum wage bill, which was amended, on July 24, 2009, to reset the minimum wage figure to $7.25 per hour.

Macroeconomics and microeconomics vary in the scope of study, so macroeconomics covers the aggregate study of various units combined together, while the microeconomics handles a particular unit of an economy. In the overall economic phenomenon of macroeconomics, it handles issues of aggregate investment, consumption, savings and production.

Further, the price of goods shall impose shifts in the supply curve since manufacturers produce more quantity of products when the prices are higher and reduced quantity when the market prices slump down (Boyes, & Melvin, 2013). Therefore, the supply curve shifts downwards or upwards when the present factors in the market seem to challenge the imposed prices to reduce or increase accordingly.

The preferences of the agents and the principals differ, and where an imperfect contract exists, the agency relationship can be exacerbated by large information asymmetry. The agent-principal problem became apparent during the Enron scandal and the 2008 financial crisis. Governments passed important regulations.

J. Sansbury company operates through a network of over 1,106 supermarkets and convenience stores along with an employee base of 157,000 (J Sainsbury plc, 2013). Company annual reports, various peer-reviewed journals and textbooks news articles, and industry reports have been considered as the main data sources in this research.

The paper also discusses Cochrane’s key claim and comments on that key claim. It asserts that on balance, there is some weight to the argument of Cochrane relating to the threat of inflation from sustained fiscal deficits and loss of lender confidence in American debt leading to the government needing to fund deficits by printing dollar.

The paper tries to identify the performance of the company before and after the deregulation. It has been noted that the performance of the airline industry has been quite unstable because of deregulation. However, Southwest Airlines has been able to maintain its position because of its innovative strategy of low cost airlines and also due to its commendable service towards the passengers.

The US was in grave economic jeopardy, on account of the Great Depression, which lasted from 1929 to the early 1940’s. The enactment of the federal minimum wage law provided an appreciable measure of relief to employees, who were now assured of at least 25cents an hour with a 44-hour weekly work ceiling.

Political boundaries, economic boundaries. Apparently distinct and separate, but actually living in perfect symbiosis. Economic boundaries change abruptly and this is due to the fact that today we have an increasingly evolved world with an increasing number of technological services on offer.

The purpose of this paper is to analyze the different aspects that contribute to the decline of the available housing units in America and to offer right options for the formulation of policies that will increase the number of affordable housing units. A majority of people are affected by decrease in the availability of affordable housing units.

In an organization with effective performance management, the managers perform the performance management process and carry out each component of the process effectively. Only planning for any business is not sufficient, a company also needs to concentrate on the way by which a task can be accomplished. Here lies the need for performance management.

Here, it can be seen that if the U.S. concentrates only on the production of clothing and India produces only food (i.e. both the nations follow specialization), and then exchange their commodities, both the nations will be able to gain from this setup. Therefore, according to Adam Smith, absolute cost difference provides the basis for international trade. (In this example labour hour is taken to be the only resource of production.)

The overview consists of the establishment reports of the IMF. It follows with the merits and the demerits of the International Monetary Fund (IMF) along with the major roles being played by it. The study also includes the major criticisms of the International Monetary Fund (IMF) (The World Economy, “The International Monetary Fund”).

Hurricane Katrina passed into the Gulf of Mexico presenting a huge threat to the coastal areas of Mississippi, Alabama, Louisiana, and New Orleans. Then, in the early morning of August 29, 2005, Hurricane Katrina came ashore at the mouth of the Mississippi near Orleans with 140 mph sustained winds and storm surges two stories tall.

The Tiebout model is an economic model explaining competition among the state and local governments. The principle of Tiebout’s theory is that the mobility of citizens (consumer voters) coupled with inter-jurisdictional competition can lead to a resourceful allotment of resources to the public sector (Billings 2008, p. 36).

They basically seek a reduction in risk before investing their money (Smets 1260). Due to this, decision makers need clarity about price rises, joblessness, interest rates plus economic escalation. The government can influence these factors through monetary policy (MCcallum 1787).

This has been regarded as the consequence of the recent global financial crisis. Weighing various forces, positive as well as negative, which are most likely to affect economic activity in the short term, most of the economic forecasters have projected their recent growth predictions earlier forecasts.

The paper focuses on endogenous growth and utilises two major approaches to deal with the issue. These are namely the convergence controversy approach and the state of market competition (Romer).

It began in 1929 preceding World War-II and lasted until the earlier 1940s. Many countries were in great depression during 10 years and it affected the economy, politics and living standards. The time period of the 1929s-1940s great depression varied across the countries but they remain in great depression for a decade and it was the greatest depression in the history of world.

Because of this, the international coverage of the crisis had also been remarkable. This paper discusses in detail the 2008 financial crisis focusing on the causes as well as, the final consequences. It is worth noting that poor financial policies were a major category of the probable causes of the 2008 financial crisis.1 Notably, major weaknesses were exposed within the national stretching beyond the international financial regulatory body frameworks.

Today, the size of a country’s level of information technology input could be equated to the level of economic growth and the subsequent size of that country’s economy. It is therefore important that various countries continue to plan ways of improving and bettering their information technology competitiveness in order to remain competitive.

According to the report in the United Kingdom, different sectors utilise energy for varied purposes and in diverse extents. The domestic sector in the UK is accountable for using almost 34% of energy. The demand for domestic energy is recognised to be increasing by a considerable extent of which oil use is over 70 million tonnes per annum.

Resources available to satisfy individuals’ wants are limited such that individuals will have to choose between alternatives. The notion of scarcity results in the problem of opportunity cost. Opportunity cost is the value of the best-foregone alternative. Since resources are scarce, people have to choose between different opportunities.

The debt crisis is an issue of major concern for any less developed or developing country. Generally these less developed countries have to borrow money from different leading countries or the private banks or World Bank for their growth and economic sustenance.

The management practices equally vary with respect to cultures. Indeed, what may be an acceptable managerial practice may be unacceptable in another culture. Most assuredly, as time lapses, there is a growing rise in cultural diversity and cultural practices and thus the need for cross-cultural management to enhance the integration of different cultures in business (Steers, Sanchez & Nardon 2010, pp. 45-50).

However, when human beings are exposed to an outcome that is relatively average, they prefer to avoid making a loss than taking the opportunity to make a gain. In an experiment done by economics by introducing monkeys to the idea of cash, similar behavior was observed (Wilkinson and Klaes, 2012:22). It is clear that the term ‘rationality’ is ambiguous and can be used in different concepts.

According to the paper, the labor union movement has been affected both in the positive as well as in the negative manner in the recent years. On macro-economic level, labor unions have become more participative in the policy making process. Due to lack of demand for the labor, there is a tendency to curtail the powers of the unions on micro-level.

The current state of unemployment is such that were we to rake into account part-time employees, who would like to work full-time, then one in six of the employee workforce in the U.S. is either unemployed or under employed, meaning that almost the production and goods or services is reduced by almost one sixth of the capacity (El-Erian, 2011).

Performance management is about identifying, measuring, and adopting strategic mechanisms to align a company’s plans with its vision, mission, values, specific goals and translate them into corporate operation. It includes the conduct of evaluations, either formal or informal, such as appraisal and constructive feedback mechanism to determine the company’s strengths, weaknesses, opportunities, and strengths.

The other alternative is to do a combination of both activities. The aim of this exercise is to determine who has the comparative advantage, meaning the one who has a lower opportunity cost of producing potatoes or raising chickens. In the end, one can see the relevance of specializing in an activity where one has the lower opportunity cost.

A plan to facilitate mortgage refinancing plan in order to rescue the housing market was the focal point for Obama administration. Since October 24th, a strong push by the Federal housing Finance agency is being conducted to let lenders borrow at lower rates.