...The purpose of this essay is to fully understand macroeconomic by analysing these questions. All these issues are related to the concept of inflation. First of all, it will give a definition of inflation and list the measures of inflation. Then, it provides what is the difference between cost-push inflation and demand-pull inflation. Next, an explanation of conflict between the objectives of full employment and price stability is represented. Finally, it is to explain that stagflation pose a problem for demand management policies. Inflation is an increase in the general (average) price level of goods and services in an economy. Inflation has positive and negative effects. It is noted that inflation is not a growth in price of any specific goods and services in the economic over a period of time. When the price level increases, fewer products are purchased. Inflation can affect the purchasing power of money, the real interest rate and investment and business decisions making Deflation is the opposite of inflation. Neither inflation nor deflation does mean all prices of all goods and services in the economy rise/decrease during a given period (Layton, Robinson &Tucker, 2012, p308). The consumer price index (CPI), an index that measures the monthly changes in the average price of consumer goods and services, is the most common measure of inflation, although it is not a perfect measure of inflation (Layton et al., 2012, p310). The formula can be expressed: CPI = cost...
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...Running Head: Macroeconomics Jaque Mcilwain August 9, 2012 Morales Macroeconomics Class Thursday 6pm Abstract I will be discussing the two types of circular flow diagrams: One that represents the flows in the macro-economy as closed system and one that represents the flow as an open system. Circular Flow Diagrams. Circular flow diagrams are an economic model that illustrates the way a countries money flows or the way a country operates. There are two different kinds of flow charts and they are classified as an open system and a closed system. An open economy is basically a country that is completely reliant on and influenced by other countries and their economies. In other words most of their flow of money is based on what other countries are doing to generate income and operates off how the other countries money flow through the economy. A closed economy is self-reliant and is not influenced by what goes on in other countries or by what goes on outside of their economy. In other words this economy relies on itself when taking into account about the way money flows. An example of an open economy is really the world by default. If any nation trades with another country then they are known as an open economy by default. The United States and Great Britain are great examples of an open economy because they are highly dependent upon importation and exportation of goods and the industry. An example of a closed economy would be North Korea an enemy of the United States...
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...________ ECON2102/2220 Intermediate Macroeconomics 2015-2016 ECON2102CD/2220CD Instructor: C. Chen Office: 901 KKL Office hours: Monday 1:40am – 3:00pm and Tuesday 4:40pm – 6:00pm E-mail: ccfour@hku.hk Semester: 2 Class meeting: ECON2102C/2220C: Monday 9:30am – 12:20pm in LE6 ECON2102D/2220D: Tuesday 1:30pm – 4:20pm in MB201 Mid-term Exams: ECON2102C/2220C: March/14th. (Mon.) 9:40am – 12:10pm in LE6 ECON2102D/2220D: March/15th. (Tue.) 1:40pm – 4:10pm in MB201 Teaching assistant: Mr. Yuk Kwan Wong. One extra class for ECON2102C: Please choose among March/7th. (Mon.) and May/3rd-6th. Q&A class for ECON2102CD: April/26th. (Tue.) Prerequisites: ECON1001/1210 introductory microeconomics and ECON1002/1220 Introductory macroeconomics according to the Regulations, Syllabus & Structure and List of Courses for the BEcon and BEcon&Fin programmes. The course is primarily for students majoring in economics and as such can be technical at times, involving the use of mathematics including elementary calculus. Slides are available at http://www.sef.hku.hk/~ccfour/#Teaching Textbook: Macroeconomics by Andrew B. Abel, Ben S. Bernanke, and Dean Croushore, 8th edition, Pearson Addison Wesley. Assessment: Homework (problem sets plus one short essay) Test (mid-term) Examination (final) 20% (10%+10%) 20% 60% Short Essay: Economics is a persuasive science, and mathematics and statistics are tools economists use to make their arguments. Therefore, writing essays that convincingly make your argument...
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...Environmental Scan Essay 4/20/2013 Environmental scanning can be viewed as a way of acquiring information about outside events that can aid organizations in first identifying potential trends, then interpreting them (Kerin, Hartley, & Rudelius, 2010). These trends normally consist of five sources, social, economic, technological, competitive, and regulatory forces. My intention in this essay is to focus on one; the economic environmental force. I will discuss how the current state of the economy will impact completing an environmental scan. In order to evaluate how the economy will impact the completion of an environmental scan, it is essential to cover the concerns that affect the economic aspect whether people want to believe it or not. The first concern is the macroeconomic level or factors which cannot be controlled. Leo Sun describes macroeconomic factors as national or global events which are out of people’s control (Sun, 2013).They have an unpredictability and dangerous side to them that can cause most companies to fail if not managed by an experienced individual. One very recent example of this is the Boston Marathon attacks that left three people dead and approximately 170 injured. We have not seen the fallout of this attack economically, but there could be one to follow that will affect the consumers, businesses, and organizations alike. When negative macro factors present themselves, a snowball effect then seems to occur economically. It is important...
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...ECON 515 MACROECONOMIC POLICY FALL 2012 Monday & Wednesday 8:00AM-9:30AM 9:50PM-11:20PM 1:10PM-2:40PM Rawls 3082 INSTRUCTOR: DR. GERALD J. LYNCH Office: Rawls 4039 Phone 494-4388 lynch@purdue.edu Secretary: Sherry Fisher 496-7227 Office Hours: Monday and Wednesday 3:00-4:00 and by appointment Introduction to the topic: As recent turmoil in the financial markets has demonstrated, macroeconomic fluctuations in the economy can create a difficult operating environment for the firm. This situation is further complicated by the fact that it is an environment over which the firm has little control. Even though the firm cannot control the environment, it can still react to economic conditions in ways that minimize its uncertainty as long as it understands the constraints it is facing. The purpose of this course is to help in an understanding of the macroeconomy. Macroeconomics is that branch of economics that seeks to understand and explain changes in output, general prices, employment, interest rates, foreign exchange rates, the balance of payments, and other related phenomena. Emphasis is given in this course to analyzing financial markets where interest rates are determined. We will spend more time than usual on the financial markets this year in response to the uncertainty in that environment today. Also, since the macroeconomic environment in this country is increasingly influenced by international conditions, the factors underlying trade and exchange...
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...wages from work, households can then buy goods produced by ... Spending that puts money into the circular flow of income. .... thanks for the comments in the research about the income and expenditure. NZIER's Moniac machine | NZIER| Economic Analysis | Forecasting ... nzier.org.nz/about-nzier/moniac-machine In the past, many visitors to the New Zealand Institute of Economic Research (NZIER) ... of a Kiwi dairy farmer, Phillips left New Zealand before finishing school to work in Australia. ... At LSE Phillips was interested in the circular flow of money model. ... variables such as consumption, taxes, government spending, investment, ... Macroeconomics Circular Flow Free Research Papers 41 - 60 www.termpaperwarehouse.com/subcategory/...circular-flow/3 Free Research Papers regarding Macroeconomics Circular Flow for download. ... expenditure and income totals in the circular flow of expenditure and income. Circular flow of income - Wikipedia, the free encyclopedia en.wikipedia.org/wiki/Circular_flow_of_income This process is unending and forms the circular flow of income, expenditure and production. .... Statements consisting only of original research may be removed. Economic Perspectives: The Circular Flow Diagram econperspectives.blogspot.com/2008/04/circular-flow-diagram.html Apr 4, 2008 - A circular-flow diagram is a visual model of the economy that illustrates ... For example, when people work for a business, they...
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...Assignment 4 Pick a macroeconomic topic of your choice and write a short essay describing the basic concepts associated with the topic as well as the impact on the overall economy. Who is influencing or in charge of the macroeconomic topic and how does the topic contribute to achieving the goals of Macroeconomics (Which goals does the topic relate to)? Fiat Money Fiat money is the money that is declared legal tender by the government and is not backed by reserves or physical commodities such as gold or silver. The real value or intrinsic value is not equal to the monetary face value or the value that is declared on it. The monetary value of fiat money is a matter of public confidence in the political or economic stability of the government or issuer. In Canada, the issuer of fiat money is the Bank of Canada. The Bank of Canada declares our currency as legal tender. Fiat Money is important because it satisfies the characteristics that make our currency viable. First, it is generally and widely accepted by the people who use it. It is much more portable and easily divisible than precious metals such as gold. Security measures taken into account in currency design are important to avoid replication and counterfeiting. The other important characteristics in fiat money are durability and controllability. Fiat Money contributes to the goals of Macroeconomics by achieving consensus among the general population of its value and in the stability of the banking system. This allows...
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...Fundamentals of Macroeconomics Pua Edayan ECO/372 October 26, 2012 William Akamine Fundamentals of Macroeconomics Gross domestic product is the market value of final goods and services produced in a given period within the United States. National accounts are related to the gross domestic product which is a subject in macroeconomics. It has three ways that results are the same. Product approach is the most direct and sums the outputs. This approach has market value of final goods and services that is calculated within a year. The gross domestic product is released quarterly. It is used to measure economic outputs and the growth rate is evaluated by the Federal Reserve. Real gross domestic product reflects positive contributions from exports with fixed investments from nonresidential, personal expenditures, and state and government spending whereas, a subtraction of imports are increased. It measures the economy as the cost incurred and earned incomes of the gross domestic product are in the production. For example, if 1992 is the base year, then the real gross domestic product for 1996 is calculated by quantities of goods and services that were purchased in 1996 are multiplied by their 1992 prices. Evaluations at current market prices are known as nominal gross domestic product. Therefore, all changes in market prices include during the year due to deflation or inflation. Deflation meaning a decrease in price level and inflation that show...
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...Chamberlain College of Nursing The United States Current State of Macroeconomics Prof. H. Morales Content Introduction................................................................. Page 1 Unemployment and GDP .............................................. page 1 Monetary and Fiscal Policies......................................... Page 2 Conclusion .................................................................. page 2 References.................................................................... Page 3 The United States Current State of Macroeconomics Introduction According the text book economics is the branch of knowledge concerning with the production, consumption, and transfer of wealth. There are two types of economics Macroeconomics and Microeconomics. This essay will attempt to explore the different type of or is the branch of economics which focused its studies’ in “large” portion of economics system. It basically deals with the overall performance, behavior, structure, and the essential decisions made by the whole economy. In reality the relationship between micro and macro economy the relationship is intertwine, they are interdependent, but still have different strategies. The overall performance are based on, pinpointing issues such as inflation, interest rates, unemployment as a whole, national productivity, GDP growth, and recession. In the United States (U.S) for the household past few years unemployment rate. According to the U...
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...Economics 2102 Intermediate Macroeconomics George Washington University Fall 2014 Professor Henry S. Terrell, Ph.D. Course Description Economics 2102 is a course in Intermediate Macroeconomics. The course will analyze the economy in a “general equilibrium” framework, where the performance of the economy in terms of output, employment and unemployment, inflation, and international trade and capital flows is determined by the simultaneous interaction of the goods, labor, money, and international markets. The course will highlight the differences between the economy in the short and long run, the important role that expectations about the future play in macroeconomic analysis, the role, limits, and transmission mechanisms of fiscal and monetary policy in efforts at economic stabilization, and the Solow model of the determinants of long-term economic growth and the role of capital formation in economic growth. The course will also explicitly consider the current challenges to the economy. Textbook and Other Materials The textbook is MacroEconomics, by Andrew B. Abel, Ben S. Bernanke, and Dean Croushore, 8th edition. The MyEconLab system that comes with that textbook is required. Grades will be based on: 1. Three problem sets turned in on MyEconLab that will count for a total of 25 percent. The problem sets when turned in are graded immediately and you will have three chances to correct any mistakes and resubmit your answers. The first problem set will...
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...June 10, 2014 KENNETH S. ROGOFF CURRICULUM VITAE Economics Department, Littauer Center, Harvard University, Cambridge MA 02138-3001, 617495-4022, FAX: 617-495-7330, email: krogoff@harvard.edu Webpage: http://scholar.harvard.edu/rogoff Birth date: March 22, 1953 Married to Natasha Lance Rogoff, two children (Gabriel and Juliana) EDUCATION Massachusetts Institute of Technology, Ph.D., February 1980 Doctoral Dissertation: Essays on Expectations and Exchange Rate Volatility. Yale University, B.A./M.A. summa cum laude, Honors in Economics, May 1975. PROFESSIONAL POSITIONS Professor of Economics, Harvard University, September 1999 – present; Thomas D. Cabot Professor of Public Policy, January 2004 – present. Chief Economist and Director of Research, International Monetary Fund, 2001–2003. Director, Harvard Center for International Development, 2003–2004. Professor of Economics and International Affairs, Princeton University, 1992–94; Charles and Marie Robertson Professor of International Affairs, 1995–1999. Professor of Economics, University of California at Berkeley, 1989–1991. Associate Professor of Economics, University of Wisconsin-Madison, 1985–1988. Economist, International Finance Division, Board of Governors of the Federal Reserve System, 1980–1983; Section Chief, Trade and Financial Studies Section, 1984. Economist, Research Department, International Monetary Fund, Oct. 1982 – Sept. 1983. VISITING POSITIONS BP-LSE Visiting Centennial Professor, London School...
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...ASSESSMENT OF MACROECONOMIC Name: Zihan Wang(Hans) Class: A3 Date: 2013-05-28 Title Explain the government's various macroeconomic objective and their importance to UK economic. Is it possible for government to achieve all these objective at the same time? Individuals, governments, firms and nations make selection on apportion rare resources to fulfil their unlimited desire which is economic concern about. Economics can generally be resolved into: microeconomics and macroeconomics. Microeconomics centralizes particular market and segments of economy such as individual consumer behaviour, supply and demand in individual markets, externalities arising from production and consumption and the theory of firms. However, macroeconomics is the concentration of the overall economy behaviour which is looking at ‘aggregate’ variables such as aggregate demand, national output and inflation. ‘Aggregate demand is the demand for the gross domestic product (GDP) of a country,’ the level of national output can be determined by AD which places a leading role. Aggregate demand is represented by this formula: Aggregate Demand (AD) = C + I + G + (X-M). ‘C’ means Consumers' expenditures on goods and services. ‘I’ expresses investment spending by companies on capital goods. ‘G’ indicates government expenditures on publicly provided goods and services. ‘X’ signifies exports of goods and services and ‘M’ presents imports of goods and services. Moreover, macroeconomics is also concerned...
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...the principles of macroeconomics. In learning how to analyze the purpose and functions of national income accounting, the components of Gross Domestic Product, the determinants of long run economic growth and the causes and costs of inflation and unemployment on our economy. By implementing graphs to interpret these principles and the economic outcomes I have learned to determine how markets allocate resources, analyze the components of the Gross Domestic Product and what the conditions required to promote long term economic growth would be. In the following summary I will be investigating a current event and composing an essay to identify a minimum of three economic concepts that I have gained knowledge about during my journey through the macroeconomics realm. The data basses I used in conducting this essay were the web sites of the Wall Street Journal and the News Week home age along with the Kaplan Library. I used goggle to locate the first two at which point I came across several other sites that when I typed the key word” economics” or “microeconomics “brought me to several sites. At which time adding another key word” current events” seemed to narrow down the sites that were originally displayed. After a search of the theses different site I had decided to use the Kaplan source as my main focus it was much easier to maneuver around and offered a better selection of articles. This is where I found most of the research I needed for the following essay. The current...
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...Fundamentals of Macroeconomics Essay I. Ojeda University of Phoenix ECO/372 June 26, 2013 Chris D. Foster Fundamentals of Macroeconomics Principles of Macroeconomics is the study of what people do or use to coordinate good and services, to understand economics we must know the fundamentals of economics. Macroeconomics is the decision making on how economics evolves in our everyday lives. Principles of Macroeconomics include a variety of terms that helps to determine the Economy in United States. Some of the terms by most economists are; Gross Domestic product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, and Interest rate. The first subject that I will cover and discuss on this paper will include Gross Domestic Product (GDP). What’s Gross Domestic Product (GDP)? Is the standard living through its goods and services within the market value in a country in a period of time. Is the value of the amount of how much each household and businesses can produce and report each year in United States. GDP can also be measured by adding up the value of the domestic expenditure made at the end of the year. Those expenditures can be described as consumption; government expenses, investment, and total spend on exports. How Microeconomics can be impacted by GDP is when showing potential and economics are able to see what was expected. This can be used during recession to tract how the country’s economy is doing and...
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...Essay Plans Macroeconomic Policy Introduction Macroeconomic policies refer to policies directed at stabilising the aggregate level of economic activity or output. The fundamental rationale for government macroeconomic intervention is to stabilise fluctuations in the business cycle. Through the conduct of such ‘counter cyclical’ or ‘stabilisation’ policies the government seeks to achieve three major objectives. • Economic growth that is sustainable in delivering rising real incomes whilst minimising inflationary pressures and the current account deficit as a percentage of GDP; • Internal Balance, which is characterised by full employment and price stability; • External Balance, which involves financing import expenditure with export income, stability of the exchange rate, and minimising the levels of net foreign liabilities and net foreign debt as a percentage of GDP. Other objectives include ensuing that the benefits of economic growth are enjoyed by all groups of the population through an equitable distribution of income, as well as ensuring that economic growth and development is ecologically sustainable such that it meets the needs of present generations without compromising the ability of future generations to meet their own needs. Macroeconomic policies operate on the demand side of the economy since changes in the settings or stances of fiscal and monetary policies will impact on the growth of aggregate demand. • If AD exceeds AS at the full employment...
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