.... In comparison between the United States and Russia and their GDP, the United States has a GDP of 17.46 trillion while Russia’s is 3.568 trillion. The United States GDP per capita is 54,800 while Russia’s is 24,800. It is very clear when you compare the two that the United States has the bigger GDP by far. I believe that the United States has a better standard of living for its citizens than Russia. To evaluate the standard of living I looked at the real GDP per person statistics. Also, I looked back through the textbook to page 44 where you can see the income per person for different countries. It was figure 2.3 to be exact. For the United States I browsed on the statistics chart in the textbook on page 133. Another thing that I wanted to add is if you wanted to look deeper into this you could research life expectancy in each country. We have a better idea for the United States. However, I would not have a guess for Russia. We learned that could make a difference when it comes to standard of living. 3. The unemployment rate in the United States is a bit higher than it is in Russia. As we can see in the United States it is 6.9% and in Russia it is 4.9%. We have to remember that these stats are from 2014 though. It could be slightly different for both countries for this year. The labor force participation rate for the United States is 63.41% and for Russia it is 86.49%. The United States is two percent higher on unemployment. Being that Russia has more than a 20 percent...
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...GDP Efrain Moreno Rasmussen College Author’s Note This written assignment is being submitted on April 22nd 2012 for Phillip Post G203/ECO2013 Section 08 Macroeconomics – Spring, 2012 at Rasmussen College. The GDP numbers for the U.S. are as follows, real gross domestic product, the output of goods and services produced by labor and property located in the United States increased at an annual rate of 3.0 percent in the fourth quarter of 2011. The number that is associated with this is 15,094,025 millions in (PPP) or purchasing power parity. China is at 11,299,967 million in (PPP), India is at or around 4,457,784 million (PPP) and finally Turkey is at or around 1,073,565 million (PPP). As of April 2, 2012, the official debt of the United States government is $15.6 trillion ($15,620,325,998,404). U.S. Personal Consumption Expenditure from (1959-2010) has shown an increase ranging from just under 500 billion in the 1960’s to just over 9.2 billion in 2010 according to the U.S. Department of Commerce (2011). Consumer spending can damage the economy. If it drops off, economic growth will slow. Prices will drop, which creates deflation. If slow consumer spending continues, the economy can go into a recession, consumer spending drives 70% of the U.S. economy. Investment spending from all sources has risen in the past 40 years; capital investment is defined as spending on capital goods such as new machinery, buildings and technology so that the economy can produce more...
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...Module 1 (Chapters 1, 2). Assignment 1-1 1. The overriding reason why households and societies face many decisions is that |a. |resources are scarce. | |b. |goods and services are not scarce. | |c. |incomes fluctuate with business cycles. | |d. |people, by nature, tend to disagree. | 2. In most societies, resources are allocated by |a. |a single central planner. | |b. |a small number of central planners. | |c. |those firms that use resources to provide goods and services. | |d. |the combined actions of millions of households and firms. | 3. A tradeoff exists between a clean environment and a higher level of income in that |a. |studies show that individuals with higher levels of income pollute less than low-income individuals. | |b. |efforts to reduce pollution typically are not completely successful...
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...1. In this problem, the multiplier is 1/.1 or 10 so, the increase in government spending = $10 billion. For tax cut question, initial spending of $10 billion is still required, but only .9 (= MPC) of a tax cut will be spent. So .9 x tax cut = $10 billion or tax cut = $11.11 billion. Part of the tax reduction ($1.11 billion) is saved, not spent. 2. Options are to reduce government spending, increase taxes, or some combination of both. If the price level is flexible downward, it will fall. In the real world, the goal is to reduce inflation— to keep prices from rising so rapidly—not to reduce the price level. A “conservative” economist might favor cuts in government spending since this would reduce the size of government. A “liberal” economist might favor a tax hike; it would preserve government spending programs. 3. It takes time to ascertain the direction in which the economy is moving (recognition lag), to get a fiscal policy enacted into law (administrative lag); and for the policy to have its full effect on the economy (operational lag). Meanwhile, other factors may change, rendering inappropriate a particular fiscal policy. Nevertheless, discretionary fiscal policy is a valuable tool in preventing severe recession or severe demand‐pull inflation. A political business cycle is the concept that politicians are more interested in reelection than in stabilizing the economy. Before the election, they enact tax cuts and spending increases to please voters even though...
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...Slide 1: To answer this question, we have to first understand that Quantitative Easing in US is a long dragged out process. Beginning with QE 1 initiated in November 2008 and in fact up till today, QE 4 is still taking place, also called QE infinity, it will take place until unemployment rate falls below 6.5% or until core inflation rose above 2.5%. Hence, when evaluating the success of something that lasts so many years, what constitutes a success? Are we referring to whether QE can prevent an economy from falling into a deep recession? Or do we define success by bringing an economy in a recession state back to full employment? Slide 2: Let me now bring you back to the year 2008 when QE was first introduced. The economy was in a constant downhill slide. It can be said that the first round of QE was effective in preventing the economy from sinking further into the great recession, where in late November 2008, the Federal Reserve started buying $600 billion in mortgage-backed securities, helping to stabilize the economy. Government purchase was halted when economy had an improvement. However, after a while, they realise that the economy is not growing as robustly as they expect it to be. This led to the second round of quantitative easing in November 2010. Slide 3: The Fed commenced QE2 and started buying another $600 billion of treasury. Once again, the market responded positively as seen from the increase in US share prices. Slide 4: This cycle repeats itself multiple...
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...PRE-TEST – ANSWER KEY Econ 361, 1st Hourly Prof. Khan Mohabbat 1. The broadest measure of the aggregate price level is the a) GDP deflator.* b) consumer price index. c) producer price index. d) d. gross domestic product. 2. If the value of a price index was 125 for 2005 and 75 for 1982, and GDP was 2500 in 2005 compared to 600 in 1982, the value of real 2005 GDP in terms of 1982 prices is a) 1500.* b) 1000. c) 2500. d) 360. 3. The index that measures the change in price of a typical basket of consumer goods is a) the GDP deflator. b) the consumer price index.* c) nominal GDP. d) real GDP. 4. Personal income equals personal disposable income plus a) payroll taxes. b) transfer payments. c) dividend payments. d) personal saving. e) personal taxes.* 5. If real GDP exceeds potential GDP, this means that a) output is below the level produced at the benchmark rate for high employment and high rate of resource utilization. b) this cannot occur; the economy can never be at a point where real GDP exceeds potential GDP. c) cyclical output is above what the economy can sustain in the long-run.* d) the economy is expanding. 6. In the base year, the relationship between nominal and real GDP is a) uncertain. b) one of equality.* c) real GDP is higher. d) nominal GDP is higher. 1 7. Gross domestic product includes a) all intermediate and final goods and services produced. b) the current production of final goods and services with a country’s borders.* c) exchanges of assets. d) the...
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...1. | Question : | Political incumbents often gain or lose re-election because of a strong or weak economy. Which of the following is an exception to that rule? | | | Student Answer: | | George H.W. Bush | | | | Al Gore | | | | Herbert Hoover | | | | Jimmy Carter | | | | Points Received: | 2 of 2 | | Comments: | | | | Question 2. | Question : | The unemployment rate is the number of | | | Student Answer: | | jobless individuals looking for work divided by those employed and unemployed but actively looking. | | | | jobless people looking for work divided by the population. | | | | people looking for work divided by the population. | | | | jobless individuals divided by the total labor force. | | | | Points Received: | 2 of 2 | | Comments: | | | | Question 3. | Question : | Which of the following statements about the behavior of the unemployment rate in the United States is true? | | | Student Answer: | | The unemployment rate in the most recent recession involved a peak rate of unemployment lower than the peak rate of the recession before it. | | | | Between 1960 and 2004, the unemployment rate has fluctuated between 3.4% and 6%. | | | | Generally, when the actual level of output is above the natural level of output, the actual level of unemployment tends to be above the natural level of unemployment. | | | | Generally, when the natural level of output is above the actual level of output...
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...MacroEcon 11:15 I, Pencil This article I just read is all about the great pencil. Everyone knows what a pencil is and how simple of an item it truly is, but noyone really knows how much work is put into making such a simple item like that is. You probably used a pencil before you even could read or write and that’s why its so familiar to you. The basic components of this masterpiece are graphite, cedar wood, metal, and rubber. So if you had all these items, could you make a pencil? You possibly could but it is a lot easier with some help from others. There is a lot of work that goes into making a pencil, and it all starts out with a tree. The very first pencil was made out of a cedar tree in the Pacific Northwest. The people who have to cut this tree down are called loggers and it takes them some labor hours to help in the process of making the pencil. They also use many things to help them cut down the tree, such as saws, ropes, and other tools. All of those items had to be man made at some point and it all started when they drew up a plan with a pencil on how to make these tools. There is also a lot of work that goes into making graphite also. Graaphite is found in China and then taken to the factory to be mixed with clay so it can be used to write with. The eraser has components coming from all around the world to make it useful to help people erase their mistakes. The metal component in the pencil also has people coming from around the world to help make it. All of...
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...ALF Money and the Prices in the Long Run and Open Economies Name Institution Contents 1.0 Introduction 3 2.0 History of Economic Changes and comparing it to Forecast for the next Five Years 3 2.1 Changes in GDP 3 2.1.1 Economic Forecast 4 2.2 Changes in Savings 4 2.2.1 Economic Forecast 4 2.3 Changes in Investment 5 2.3.1 Economic Forecast 5 2.4 Changes in Unemployment Rates 6 2.4.1 Economic Forecast 6 2.5 Changes in Real Interest Rates 7 2.5.1 Economic Forecast 7 3.0 How Government Policies Can Influence Economic Growth 8 4.0 Influence of Monetary Policy 8 5.0 Influence of Trade Deficits or Surpluses 9 6.0 The market for loanable funds and the market for foreign-currency exchange 9 7.0 Recommendation based on the Achievement of the Strategic Plan 10 8.0 Conclusion 11 ALF Money and the Prices in the Long Run and Open Economies 1.0 Introduction (Creasey, Rahman, & Smith, 2012), defines economic growth as the rise of the monetary value of the goods and services produced by a country or an economy over a given period. Economic growth is simply the percentage change (increase or decrease) in the real GDP (gross domestic product) (Ahmad, 2013). "The economy of the United States is among the top largest economies in the world though it is facing stiff competition from other economies such as China," (Orhangazi, 2008). An analysis of the US economy reveals that...
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...Information and Communication Technologies in the Nigerian Economy Peter Agada University of Ilorin Most developing nations have embarked on various reforms that foster the use of ICTs in their economies. These reforms tend to yield little or minimal benefits to economic growth and development, especially when compared with the developed countries of the world. Technological advancement is known to impact fast rate of economic development. In Nigeria, policy on adoption of Information and Communication Technologies was initiated in 1999, when the civilian regime came into power of government. The operations of the licensed telecommunication service providers in the country has created some well-felt macroeconomic effects in terms of job creation, faster delivery services, reduced transport costs, greater security and higher national output. This study intends to investigate the emerging roles of ICTs on Nigerian economy, and to evaluate the factors that influence the decisions of investors in the Nigerian telecommunications sector. Ordinary Least Square Method of Regression for the period 1999 – 2004, shall be employed. This period is considered appropriate in that, it was the time that policy on ICTs was adopted. The paucity of data prior to this time also poses restriction on meaningful econometric analysis. Significant and positive relationship between ICTs and economic growth is expected as...
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...DETERMINATION MACROECON OMICS VARIAB LES AN D S TOCK RETU RN : A CAS E OF F IN AN CE S E CTOR AN D TRAD IN G & S ERVICE S E CTOR IN MALAYS IA P a u lin e Ch ee Ba ch elor of F in a n ce (H on ou r s) 2010 CHAPTER ONE INTRODUCTION 1.1 Introduction Stock market is a place for listed companies to raise capital .Companies can use the capital for continuing operating activities and expand business. However, the investors are explained to get a positive return from dividend and capital gain in the stock market. Based on the history, the economic condition will influence stock market. For instances, Malaysia faced deflation during the Asian crisis in years 1997. It caused the KLCI index sharply reduced from 1207.43 to 470.43. It have been shown that the investors need to predict the stock prices based on the macro factors to get an abnormal return from stock market There were a lot of researches to study the relationship between macroeconomics variables and stock returns. It is important to study the interaction of macroeconomics factor and stock return. Based on the study, the public can identify which factors can influence the stock market and use the knowledge to predict movement of stock price. According to Wongbangpo & Sharma (2002), the research can reveal the functions of stock market in identify the change in economic condition and also can predict the future performance of stock market. Besides, the study will be useful for the stock market participators...
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