Some key differences from an economic point of view are the five major indicators of macroeconomics: GDP growth, Balance of payments, per capita income, inflation rate and unemployment rate. In developed countries GDP and…
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The balance of payments is usually in deficit. (Adams, 2002, pp. 53-55)
A country’s fiscal policy is the mix of government expenditure and revenue collection mechanism in an economy. Historically, governments collect revenues from taxes and their expenditures include public sector expenditures. (Auerbach, 1997, p. 88)
A country’s monetary policy is a combination of activities by the state bank or central bank, the government and other financial institutions to control the demand and supply of money and interest rates in an economy. In a nutshell, the effect of each is dependent on the other and that is what the monetary policy aims to control. (Walsh, 2003, pp. 9-12) This case focuses on primarily on monetary policy. To gain a better understanding of how a monetary policy works, we first need to understand its two components i.e. money supply and interest rates.
Money supply is generally divided into M1 and M2. Further classifications may also exist. The divisions are based on liquidity of the funds. M1 funds are the most liquid funds and include cash, very short term securities or securities equivalent to cash. M2 funds include those funds which are slightly less liquid than cash like current account deposits. As the liquidity decreases, the number after M increases.
In my opinion interest rate is basically the cost of money. It is also the cost of borrowing or the return on investment. Interest rates have two components. The discount rate which is set by the central bank and is the rate at which the central bank lends to commercial banks. The other component is the market interest rate. I believe it differs because of bank’s spreads and their portfolio of customers.
In my opinion, the developed nations have always moved towards a relaxed monetary policy as they promote free trade and trade liberalization. In addition the existing well defined systems in these economies allowed for and
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Innovation is important because it creates new products that can be manufactured, thus the innovation leads to job creation for the community. An area in which the United States has kept its dominance worldwide in regards to innovation is the pharmaceutical industry.
Industry A has 20 firms and a Concentration Ratio (CR) of 20%. Industry B has 20 firms and a Concentration Ratio of 85%. Addressed in the paper are the names of these industry types, characteristics inherent, potential long run adjustments and implications of the anticipated adjustments.
However, this has resulted to some issues that are becoming wider in scope. The impacts are now felt even in the free market and recruitment of labor. Free market is supposed to function efficiently on itself without any intervention from other economic agents.
However, it is still clear that persistent and significant disparities exist between Whites and Blacks. The present racial behavior of Whites towards Black is fundamentally ambivalent because of the popular contemporary racial prejudice. This prejudice happens both directly and indirectly ranging from job recruitment, legal decisions to mass problem resolution.
In his article, “Isolated by the Internet”, Clifford Stoll, discusses in depth about the negative impact that the internet has had on our social and our personal lives. He does present a well written piece where he analyzes his perspective from all possible dimensions and even present a few positive effects of the internet.
The actual or realized expenditure is the amount households, firms and government spend on goods and services, i.e. GDP (Y), while planned expenditure (E) is the amount they would like to spend on the same goods and services. Now the three major determinants
On the other hand South Korea recorded the most impressive growth in its livings standards since 1960 because it posted a growth of 1304.5%, while the United States posted a growth of 166.2% since 1960.
In that context, President Obama needs to look into some aspects of the American economy, which have not only traditionally constituted the essentials of American economy, but a neglect of which has really diluted the American economy. America badly needs to restore its
It is therefore to anticipate risks and plan mitigation measures in the case the unfortunate eventuality. The risks associated with IT are some of the most important risks and should be minimized at all costs, but risks can come from other
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