4. a) Real GDP growth = (1246582-120412)/120412 = 0.02988 4.b) Labour productivity in 2004 = 1210412/23416.2 = 51.69 Labour productivity in 2005 = 1246582/23625 = 52.76 4.c) Rate of Labour productivity growth = (52.76-51.69)/51.69 = 0.0207 4.d) increased percentage of capital = [(413106.6-394697.2)/ 394697.2] *100= 0.0047*100 = 0.47% 8…
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However neither of these explain the extent of abundance of resources that are not utilized. A fair question is why don’t we observe foreign direct investment to exploit these resources? The major cause lies in the fact that Africa lacks human capital. Skilled workers migrate abroad. Further, political instabilities and corruption has led to very poor infrastructural development. Consequentially managing logistics is extremely difficult. For foreign investors, these associated costs make exploiting resources unprofitable.
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(“Soving 2 Macro economy Qs Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
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(Soving 2 Macro Economy Qs Essay Example | Topics and Well Written Essays - 500 Words)
“Soving 2 Macro Economy Qs Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/other/1412277-soving.
a) Limits to arbitrage Y b) Investment sentiments Y c) Perfectly elastic curves N d) Inflation illusion Y e) Excessive risk aversion Y Discussion From behavioral economics, there exist three vital effects of noise traders on assets equilibrium prices. To start with, noise creates a situation of risk by the noise trader.
In the long run, this aggregate supply is fully responsive to the changes in price level. Gross Domestic Product (GDP) is the primary measure of the performance of the economy as it measures the annual output of goods and services or the aggregate output.
A change in one variable or sector will eventually affect the others, positively or adversely. Therefore, there is no accurate way to calculate the overall effect of a policy on macroeconomic level. This complex interrelationship is the major difficulty in developing macroeconomic policies and choosing the most appropriate policy among alternatives.
As a result of the positive demand shock at t=1, the AD curve shifts out to AD1. The SRAS curve remains the same. As a result the new short-run equilibrium point at t=1 is E1. Short run aggregate output increases to Y1 and the price level rises to P1. In period t=2, the AD curve shifts back to its initial pre-shock level AD0.
When used properly, macroeconomic indicators can be invaluable resources for a company or forex trader. Generally, these statistics help companies to observe the economy’s pulse, thus it is not surprising that every company, whether local or international, follows with great interest these economic statistics.
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.
which may take long owing to the immobility and imperfections of the market.
b) By shifting demand away from their own goods the resultant effect will be increased imports suggesting a weak currency in value as compared to the other country's currency. However the purchasing power parity (ppp) theory holds that over the long-term, the average value of exchange rate between two currencies depends on their relative purchasing power.
Macro-management, of itself, is not the key ingredient in the process; rather, the essential building blocks have been trade liberalization, the opening of the capital account, the floating of the dollar, and the attempts at broad-ranging micro-economic reform, as yet incomplete.
45). The unemployment rates in the euro area and Japan have also increased notably. The actual situation is even worse as it does not include unemployment data for discouraged workers who are unemployed but not currently looking for work
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
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