In what ways can fiscal policy affect aggregate supply?
Fiscal policies affect aggregate supply in many ways. Taxation affects supply of labor that in turn affects the supply of goods and services. Rise of direct taxes reduces the net income, thereby lowering motivation among employees.
Econ reading and short essay questions Student Name: Tutor Name: Course: Date: . 1.) Answer Questions for Review #1 near the top of page 641 Money is combination of assets that used as a medium of exchange in an economy while commodity money is the value that an item has even if it has not been utilized as money for example; a gold (Mankiw, 2011).
Hire a pro to write a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
It exists in systems that that are organized into structures with bodies, organizations, and consumers as key stakeholders. An example of an economy is the economic system of a nation that operates under the nation’s government and its agencies and has organizations for manufacturing and distribution of resources, and consumers as stakeholders.
This means that it is not possible to exclude all individuals from the use of the good. Economically, an excludable good or service is one that is possible to prevent people or consumers from the use of the good or enjoying the service. In most cases, excludability of people in goods and services takes place when some consumers have not paid for the good or service (Brousseau et al.
This report provides information about the factors that erode the profitability of the Coca-Cola Company, her economic power to charge higher prices and the strategies the company has employed to remain competitive in the ever changing global economy. The information is for the management of the coca-cola company to help them in proper and logical decision making.
It is important to note that the inequality in income which is perpetuated by globalization also has its underpinning in inequality in industrial development and technological advancement. Mills (2009, 7) observes that on one hand, all countries which are less developed or are still developing do not have industrial or technological development.
The basis of the war had economical motivations related to the use of slaves for labor. The war ceased in 1865 and immediately immigration dynamics were completely changed, immigrations to the United States increased tremendously (Digital History 1). The rise was attributed to several factors motivated by the need to stabilize the economy and balance demand and supply.
The main research question aims to find out the impact of economic growth on three main indicators of economic development namely, health, literacy and incidence of poverty and inequality. This is a qualitative paper drawing its conclusions mainly from quantitative analysis done by institutions such as, the Bank of Thailand and Asian Development Bank.
Economic mechanisms explain laws in terms of distribution of resources to bring the concept of equilibrium. The laws in one country cannot be the same as the other country; it is economics that usually try to bring the universal aspect of law. The international economic activities try to encompass every one in the world bringing international laws on which people can conduct their business activities.
This game theory is of vitality in oligopolistic markets. In industrial economics, the profits of an industry or firm are highly dependent on not only how much it produces but also how much the other industry produces. This means that the payoffs of an industry for its production depend not only on their decisions but also on their rival’s decisions (Durlauf, 2010).
Columbia first began to introduce an import-substitution industrialisation process in the 1930s and this lasted until the 1950s when an over-reliance on coffee exports caused the government to pursue a more mixed strategy, which included more emphasis on production for export.
First of all, a successful company should have a good enough image for its customers to be returning and loyal. That is the task of public relations. Secondly, a company should make end users aware of the existence and benefits of its goods or services, as well as the company itself.
Obtain stress-strain curve for the given specimen. ii. If the same specimen is heated to 35oC and tested, what are the possible variations that could occur? Heating the sample would cause the length of the specimen to increase and this in turn would produce greater deflection under loading.
Two social insurance programs; a federal-state program of unemployment compensation and a federal program of old-age retirement insurance, constituted the original Social Security Act. The Act was amended in 1956 to provide disability benefits also. At present Social Security consists of four separate trust funds; the Old Age and Survivors Insurance (OASI) Trust Fund, the Disability Insurance (DI) Trust Fund, the Hospital Insurance (HI) Trust Fund, and the Supplementary Medical Insurance (SMI) Trust Fund.
For most people, for whom driving is a necessary part in their daily lives, even an increase in the price of petrol or diesel would not stop them from driving. In the case of cabbages, as there are many alternatives available, it is not a necessity for people, an increase in its price would result in an increased fall in the quantity demanded.
The Central Bank had its contribution into the matter due to the fact that it had undertaken a cash rate cut in the economy. The central Bank started undertaking this action back in the first quarter of the year 2009. These actions saved the average mortgage holders a significant cost of mortgage access spread over the standard mortgage period of 25 years.
One of these societal problems that has gotten even worse the past few decades is hunger and malnourishment, especially for children. There are many causes that contribute to this problem, but none of them can easily be solved. Some are based in the geography of Nigeria while others stem from political and social ills such as corruption and abuse of office.
However, this capitalism was somehow destabilised by the emergence of totalitarianism and collectivism. Yergin and Stanislaw (2002) assert that it will be better off if governments are given the opportunity to regulate the economy. This resulted in many countries adopting this system that is still evident up to now.
These are perceived to entail business enterprises that run their operations in several different countries (Ozoigbo & Chukuezi, 2011, p.380). Generally, these enterprises are headquartered in their parent or home countries, but they operate in several other countries.
The family has companies in its portfolio, whose products are consumed by the British Royal family. This makes the family name synonymous to royalty. Loblaw which is one of the flagship companies of this family is currently under a very dire situation. Its initiative of Real Canadian Super Stores has been a major flop and as a result of that has caused enormous amount of loses not only for the family but also for the retail chain.
9 pages (2250 words)
, Download 1
, Research Paper
The global economic crisis that began in 2007 duet to credit crunch issue led to a liquidity crisis across the globe. This forced the US monetary bank to inject financial capital into the economic markets, but the crisis worsened in 2008.
Introduction Economic deals with study of human nature hence most theories in economic are based on the nature of humans. Adam Smith and Karl Marx are considered as the greatest economists of their time, in fact Smith is regarded as the father of modern economics (Skousen, 3).
‘Porters diamond model’ (Rugman and D'Cruz 1993) The model reviews clusters of industry players, particularly a group of small industries, where the competitiveness of one of the corporations is influenced by that of other companies and the factors that are related to its value-added chain – within the regional and local market or when reference is made to customer-client relationships (Rugman and D'Cruz, 1993).
In relation to the present instability as well as increasing complexities in the conditions of the global economy, it is widely accepted that the countries seek to reform their financial position by encouraging the potential opportunity for its different industrial sectors.
The purpose of this study is to evaluate one of the most prominent auto makers along with the microeconomic principles associated with the recovery in the auto market. In order to accomplish the purpose of this study, variety of economic principles is taken into consideration to evaluate the recovery of the company in the auto market.
Market externalities can be a very costly to the society and lead to economic imbalance. An externality is a benefit or a cost that is derived as a direct side effect of the production or consumption of a product and which is incurred or benefited by another person other than the actual producer or consumer.
The oil monopoly in the country's Pemex, is owned by the state meaning that all the revenues proceed directly into federal government. This way, about a third of the income of the government depends on the oil. Other than investing in the development of new fields, the Mexican government treats Pemex more of a cash cow as it tries to maximize the short-term profits.
Many legal activities that exist in a society have consequential causes to the people living in the society depending on legal institutions’ decision regarding them. These activities may lie in fields that deal with property, contract, torts, crimes or justice cases.
Inflation of the other hand describes the concept where the prices of commodities rise due to input of more money into the economy than there are goods or decline of production without the decline in the amount or currency in the economy. This paper seeks to evaluate the relationship between the budget deficit and inflation.
UK government intervention included injection of considerable financial capital into the private sector in exchange for maintaining a long-run equity stake in the organisations where capital was infused (Simpson 2009). The equity agreement for small banks was 100 percent, with larger banks such as The Royal Bank of Scotland and Lloyd’s at approximately 70 percent; costing the government approximately ?
This essay focuses on the economic analysis of the global oil market condition with the help of basic economic concepts, such as supply and demand. Like any good in the market, oil demand and supply are affected by several factors in the market. Any change in its demand and supply will affect its price and it will impact the state of economy.
USEC is pursuing the American Centrifuge Project (ACP) because it will give it a technological and cost leadership over its competitors. The cost efficiencies realized from ACP will make it the lowest cost producer in the uranium enrichment industry. The technology used in the centrifuge project will cut down the electricity consumption.
Furthermore,the cost-benefit analysis will be investigated to determine what does it tell us about the economic efficiency of situational crime reduction.The reduction of crime in the national level is ‘driven by policies which emphasise partnership working between police, criminal justice authorities, local authority teams and other agencies
The essay mainly focuses on identifying laws of cyclical fluctuations of business activity on macroeconomic level of a state, with the help of theoretic analysis of the views of renowned economists on the subject. It also chronologically reviews two most severe recent economic crises in America in the forms of Great Depression and Great Recession.
The main mission of public health is to promote the health of the society by identifying risk factors for diseases, injury, disability and death by implementing policies that minimize the exposure of people, to the risk factors. Protection of human health requires economic analysis.
The unemployed would also be allowed to collect benefits for a period of 99 weeks while unemployment insurance money would be channeled to retraining programs as well as subsidies to hire the unemployed. Furthermore aid packages would also be figured out that would keep teachers, police officers and firefighters employed while rehabilitating schools and building infrastructure at the same time.
The sovereign Crisis began because of the dysfunction of the monetary union of the states within the Eurozone in addition to the politicizing of the economic control in Europe. The Impact of the European Sovereign Debt Crisis includes the reduction of the bond yield in the United Kingdom.
Student’s Name Professor’s Name Macro & Micro economics December 10, 2011 Microeconomic Principles 1) In this speech I am going to talk about the virtues of private property / free market price systems. There are two types of economies, the command economy and the decentralized economy or free market.
As a result, the financial crisis that occurred was much of a surprise to the policy makers as they had to finds ways to intervene in the economy. Considerably, it is essential to understand what the effects of monetary and fiscal policies were before and after the financial crisis in United States of America economy.
Macroeconomics and microeconomics are the two most general areas of economics. Macroeconomists study combined indicators such as Gross Domestic Products (GDP), unemployment rates as well as price indices in order to understand how the whole economy works.
Mexico is an open market economy and ranks in the trillion dollar class. It contains a mixture of modern industries and agriculture, and the economy is highly dominated by the private sector. The income per head (Per Capita) is roughly a third that of the U.S.A but income is not equally distributed (CIA 1).
However, simultaneously, various kinds of inequalities such as income disparity have increased, because of the rural-urban income gap. And also there have been increases in unfairness in health and education areas. Certain amount of inequality was unavoidable as China entered in a market system, however inequality have worsened instead of lessening due to number of strategy issues (Dollar ).
There are abundant signs which are pointing towards positive glimpses because there has been a little growth in the overall income of UK and the statistics are revealing that double dip depression is now being diminished from the UK’s economy(Alderman & Shelburne, 2011).
According to the paper higher education plays a major role in social, human and economic development. The role of institutions providing higher education is not only important but also complex. The higher education institutions show a number of different abilities and scope and can have impact on the processes of development through research, teaching and service.
The jet fuel is one of the largest and volatile expenses that the airline incurs. For instance, in 2013 the fuel rose to 26% per gallon from the end of July 2013. Every increase in the price per gallon costs the airline $180 m per annum. Therefore, after two years of recording profit, the United States airline industry lost $4.3 B in the first quarter from the currently available financial statistics (Lehman, 67).
Since tomatoes have been destroyed, the supply of tomatoes has dropped significantly. The situation is even made worse by the fact that there was delayed planting. Because of reduction in supply, the supply curve will shift from S1 to S0 and the demand curve will remain unchanged.
The researcher with the aid of a diagram shows and explains how fiscal policy can be used to shift the aggregate demand. The study evaluates the effectiveness of the policy used and the appropriateness of the government’s fiscal policy stance. It explain the fiscal policy stance adopted using the 2010-11 Australian Government’s Budget papers and with the aid of statistics.
In year 2009, a leading forecaster anticipated that the economy of Australia would dip with regards to performance. One of the reasons why this forecaster expected such is because there was very slow growth in a closely related economy of China. According to Access Economists, an Australian research company, the prospects for the mining-oriented economy were that the performance of the economy would really become dismal.
The author of the essay comments on the concepts of micro economics and macro economics. To be precise, the author provides the idea of Samuelson, who states that economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.
This report is based on a research project commissioned to advise the minister for finance on economic policies. Using regression analysis techniques, the paper identified more significant effects from secondary enrolment to the advice that the available finances be channelled to secondary school education.