...TD EQUIPMENT AND RENTALS COMMUNICATIONS TABLE OF CONTENTS The company that I represent is called TD Equipment and Rentals. We specialize in heavy equipment operating and will do almost any job that you can ask for. We also rent equipment to countries around the world for major construction projects. The majority of our jobs involve underground drainage, but our knowledge of the construction field does not end with just that. We have worked on hundreds of billion dollar projects all around the world. The following is a brief introduction and five methods of good organizational communication assets that should be implied at the workplace to ensure max productivity and a safe environment. Customer Service To ensure that customers will return to your place of business because of the supreme service that they have received previously. One of the biggest parts of owning a business is having the clientele to operate efficiently. A good way to promote business is to practice great customer service. Implementing proper customer service will allow customers to feel special, and will make them want to choose your business over others.This good customer service will lessen the amount of communication mistakes that are made between workers of the company and it’s customers. When customers are treated with kindness and respect, they are less likely to resist which may cause mistakes. Customers do not want angry, mad workers on their properties working on their land, but rather...
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...Using the concept of the multiplier effect, evaluate the likely economic effects on the UK price level and the equilibrium levels of real output and rising interest rates? The multiplier effect can be defined as an increase in a country’s supply of money from the banks’ ability to lend. An injection into the circular flow of income will most likely cause further rounds of re spending into the economy. The size of the multiplier effect depends on an assortment of facts from interest rates to the marginal propensity to consume. If the MPC consumers are more likely to re spend the money and put it back into the circular flow. This also includes investments by firms and spending on abroad imports. If interest rates are high consumers and firms are more likely to save their money as the return is very high, but if interest rates lower the opportunity cost of saving the money also lowers and firms/ consumers will inclined to spend in the economy. Increased interest rates will potentially have several consequences, one of these being increased borrowing rates. If borrowing rates go up firms become less willing to take out money from the banks and invest, as the cost is too high. As investment from firms decrease there will be an inevitable decrease in capital good investment which will cause a leftward shift in aggregate demand. Subsequently the decrease in AD may also result in a lowering of inflation. Price level Price level Increased interest would directly reduce inflation...
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...Economic impacts of Tourism Page # 1 Economic Impacts of Tourism Daniel J. Stynes Businesses and public organizations are increasingly interested in the economic impacts of tourism at national, state, and local levels. One regularly hears claims that tourism supports X jobs in an area or that a festival or special event generated Y million dollars in sales or income in a community. “Multiplier effects” are often cited to capture secondary effects of tourism spending and show the wide range of sectors in a community that may benefit from tourism. Tourism’s economic benefits are touted by the industry for a variety of reasons. Claims of tourism’s economic significance give the industry greater respect among the business community, public officials, and the public in general. This often translates into decisions or public policies that are favorable to tourism. Community support is important for tourism, as it is an activity that affects the entire community. Tourism businesses depend extensively on each other as well as on other businesses, government and residents of the local community. Economic benefits and costs of tourism reach virtually everyone in the region in one way or another. Economic impact analyses provide tangible estimates of these economic interdependencies and a better understanding of the role and importance of tourism in a region’s economy. Tourism activity also involves economic costs, including the direct costs incurred by tourism businesses...
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...examples are presented. These represent a range of alternatives for estimating the economic impacts of visitor spending. The techniques covered range from methods based largely on judgement, to methods that utilize secondary spending data and published multipliers, to the use of visitor surveys and input-output models. A third bulletin in this series discusses survey methods for measuring visitor spending and includes sample spending instruments. While the construction and operation of tourist facilities also has economic impacts, we will restrict our attention here to the impacts of visitor spending. Review of Basic Approach and Levels of Analysis The economic impact of visitor spending is typically estimated by some variation of the following simple equation: Economic Impact of Tourist Spending = Number of Tourists * Average Spending per Visitor * Multiplier This equation suggests three distinct steps and corresponding measurements or models: (1) Estimate the change in the number and types of tourists to the region (2) Estimate average levels of spending (often within specific market segments) of tourists in the local area. (3) Apply the change in spending to a regional economic model or set of multipliers to determine the secondary effects. The three steps and corresponding information typically involve distinct methods, models and information sources....
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...to break up unions. 3. Five factors that shift the AD curve are: changes in foreign income, changes in expectations, changes in exchange rates, changes in the distribution of income, and changes in government aggregate demand policy. 4. Say there is a rise in the price level. That would make the holders of money poorer (the wealth effect). It would also reduce the real money supply, increasing the interest rate (the interest rate effect). Assuming fixed exchange rates, it would also make goods less internationally competitive (the international effect). All three account for the quantity of aggregate demand decreasing—decreasing spending as the price level rises. These initial increases are then multiplied by the multiplier effect as the initial spending reverberates through the economy. 5. Two factors that shift the SAS curve are changes in productivity and changes in input prices. 6. If the economy is in short-run equilibrium below potential output, input prices will fall, causing the short-run aggregate supply curve to shift down and the price level to fall. This will set the wealth, interest rate, and international effects in motion, increasing the quantity of aggregate demand and thereby bringing the...
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...Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster) Chapter 9 The Government and Fiscal Policy 9.1 Government in the Economy 1 Multiple Choice 1) Fiscal policy refers to A) the techniques used by a business firm to reduce its tax liability. B) the behavior of the nation's central bank, the Federal Reserve, regarding the nation's money supply. C) the spending and taxing policies used by the government to influence the economy. D) the government's ability to regulate a firm's behavior in the financial markets. Answer: C Diff: 1 Topic: Government in the Economy Skill: Definition 2) Which of the following is NOT a category of fiscal policy? A) government policies regarding the purchase of goods and services B) government policies regarding taxation C) government policies regarding money supply in the economy D) government policies regarding transfer payments and welfare benefits Answer: C Diff: 1 Topic: Government in the Economy Skill: Conceptual AACSB: Reflective Thinking 3) What determines tax revenues? A) the income tax rate B) the rate of interest C) the money supply in the economy D) the rate of inflation Answer: A Diff: 2 Topic: Government in the Economy Skill: Conceptual AACSB: Reflective Thinking 4) Which of the following is INCORRECT regarding tax revenues? A)...
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...1. A multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable. For example, a change in spending such as an investment, changes output and income by more than the initial change in investment spending. This is the result of a multiplier effect. Suppose a large corporation decides to invest in a new production plant in a small town. In the first year, $2 million was spent on wages for workers and various other people involved in setting up the new plant. If MPC is 0.5, those people would spend $1 million on goods and services. The businesses and individuals receiving the $1 million would in turn spend $500,000 and so on. If the marginal propensity to consume is equal to 0.5, then the multiplier can be calculated as: Multiplier = 1 / (1 – MPC) = 1 / (1 – 0.5) = 1 / 0.5 = 2 An increase in MCP will result in a higher multiplier effect Marginal propensity to consume + Marginal propensity to save = 1 MPS = 1 – MPC Multiplier = 1 / MPS An increase in MPS will result in a lower multiplier effect. When MPS = 0.4 Multiplier = 1 / 0.4 = 2.5 When MPS = 0.6 Multiplier = 1 / 0.6 = 1.67 When MPS = 1 Multiplier = 1 / 1 = 1 When MPC = 1 Multiplier = 1 / (1 – 1) = ∞ When MPC = 0.67 Multiplier = 1 / (1 – 0.67) = 3.03 When MPC = 0.5 Multiplier = 1 / (1 – 0.5) = 2 Increase in investment by $8 billion When MPC = 0.8 Multiplier = 1 / (1 – 0.8) = 5 Multiplier = Change in real...
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...What is fiscal policy and how can it be used to manage the economy? Briefly describe the current UK fiscal policy, and comment on the effect it may have on the economy. Fiscal policy is the use of government spending, taxation and borrowing to influence the level and growth of aggregate demand, output and employment. Aggregate demand (AD)= Consumption + Investment + Government spending + (Exports – Imports). Changes in fiscal policy affect both aggregate demand and aggregate supply. (Riley 2006) Fiscal policy is used to achieve macroeconomic objectives such as full employment, price level stability and sustained economic growth. Expansionary fiscal policy is an increase in government expenditures or transfer payments, or a decrease in tax revenue. A tax cut will increase AD because it increases households’ disposable income. The greater the disposable income the greater is the quantity of goods and services demanded and therefore the greater is AD. This will stimulate economic growth in a recession, which will shift the AD curve to the right. (Parkin, Powell and Matthews 2008) The magnitude of the shift = expenditure multiplier x the increase in government expenditures. In the short run it will increase both Gross Domestic Product (GDP) and the price level. An increase in the price level will increase the money wage rate, which reduces the SRAS. The SRAS curve shifts left until in the long run real GDP = potential GDP at a higher price level. Contractionary fiscal policy...
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...sales are purchased outside of the municipality. Once the plant opens, it’s expected to employ 250 workers with an average hourly wage of $15.00 per hour. Direct Impact The size of the proposed construction project was 50,000 square feet, with a per square foot cost of $100, which generated $5,000,000.00 in construction business generated by this project. A construction multiplier of 1.5 x the $5,000,000.00 would generate $7,500,000.00 in total construction benefits for the city. Expansion of the processing plant is projected to be a $30,000,000 contribution to the City of Galveston’s economy. Attracting and maintaining this type of business within the city would have tremendous impact on the local economy. Another direct effect included the 300 construction workers staying at 300 different hotel rooms at a rate of $75.00 per night, an immediate impact on the local hotel economy of $22,500.00. Furthermore, the project will also have an indirect effect (support industries) and an induced effect (worker consumption) of the spending on the project within Galveston County. Indirect Effects The indirect effects stemming from the plant project included jobs created in support industries to supply intermediate goods and services for the sector targeted by direct spending. In addition,...
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...CHAPTER 9 Basic Macroeconomic Relationships A. Short-Answer, Essays, and Problems 1. Define the consumption and saving schedules. 2. Explain how consumption and saving are related to disposable income in the aggregate expenditures model. 3. Complete the following table assuming that (a) MPS = 1/5, (b) there is no government and all saving is personal saving. Level of output and income Consumption Saving $250 $260 $___ 275 ____ ___ 300 ____ ___ 325 ____ ___ 350 ____ ___ 375 ____ ___ 400 ____ ___ 4. Complete the following table assuming that (a) MPS = 1/3, (b) there is no government and all saving is personal saving. Level of output and income Consumption Saving $100 $120 $___ 130 ____ ___ 160 ____ ___ 190 ____ ___ 220 ____ ___ 250 ____ ___ 5. Differentiate between the average propensity to consume and the marginal propensity to consume. 6. What are the marginal propensity to consume (MPC) and marginal propensity to save (MPS)? How are the two concepts related? How are the two concepts related to the consumption and saving functions? 7. Suppose a family’s annual disposable income is $8,000 of which it saves $2,000. (a) What is their APC? (b) If their income rises to $10,000 and they plan to save $2,800, what are their MPS and MPC?...
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...tourism to Malaysian economy. As impact effects of tourism are being realized by nations, it is now believed to stimulate the economic progress of developing economies and its importance in gaining widespread recognition, as such, Malaysia is no exception. With the immense growth of tourism, Malaysia has become one of the leading tourist destinations competing with other popular destinations of the global economy. Similar to many developing nations, tourism industry has become one of the most vital sectors, encourage the growth and development for Malaysian economy because of its competitive advantages. 2.0 Main Issues The ability to generate ripple effects by tourism makes it a performer of vital medium of foreign currency injection which has been drawing a significant attention for the economic development of developing countries. Developing economies are progressively relying on income streams from tourism while the traditional economic sectors have become less potential in contributing to GDP. The economic impacts of tourism are occurring in extensive latitude, within the evolution of the globalization process (Sugiyarto et al., 2003) that is, in turn, helping the acceleration of this industry’s expansion around the globe. In fact, direct, indirect, and induced multiplier effects are the causes that assist in expanding the contribution of tourism to an economy. The tourism industry not only creates considerable high multiplier effects but also enhances the inter-sectorial...
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...Simulation of the Macro Economic Behavior of Taiwan’s Invigorating Economy Consumption Voucher Wen-Chin Wei∗ Abstract Given the severe global economic downturn, countries are using a variety of possible economic policies to try to help their economies recover. This study adopts system dynamics from the dynamic perspective to investigate how Taiwan’s decision to issue time-limited consumption vouchers will influence macro economical behaviors. The simulation led to following primary results. First, in regard to the highest marginal propensity to consume (MPC = 0.3) and the lowest substitution rate of consumption (SR = 0.6741), the distribution of the consumption voucher will generate the biggest multiplier coefficient (0.6830) and Y (GDP). Second, as SR increases by 1%, the multiplier effect decreases by 0.44%. Third, the contribution percentages of consumption vouchers on the first, second, third, and the accumulated total of these three quarters of private consumption in 2009 ranged from 2.13-2.55, 0.25-0.30, 0.19-0.22, and 0.86-1.02 of a percentage, respectively. Meanwhile, the contribution percentage of consumption vouchers in the first, second, third and the accumulated total of these three quarters of GDP in 2009 ranged from 1.36-1.63, 0.15-0.18, 0.11-0.13, and ∗ Assistant Professor, Department of Public Finance & Taxation in National Kaohsiung University of Applied Sciences, Taiwan, Republic of China (R.O.C.). Corresponding Author. Tel: (07)3814526 ext. 6216, Email: wwc@cc...
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...Magdelyn Rosa ECO 101-007 Prof. Sanyour Chapter 27 Macroeconomic Relationship In this chapter 27, I learned about three basic relationships in the economy: income and consumption, the interest rate and investment, and change in spending and change on output. Consumption is the largest aggregate in the economy. This section develops the consumption and saving schedules and describes their main characteristics. Investments consist of expenditures on new plants, capital equipment, machinery, inventories and construction. The purchase of capital goods depends on the rate of return that business firm expect to earn from an investment and on the real rate of interest they have to pay for the use of money. Because firms are anxious to make profitable investment and to avoid unprofitable ones, they undertake all investments that have an expected rate of return greater than the real rate of interest and do not undertake an investment when the expected rate of return is less than the real interest rate. The relationship between the real interest rate and the level of investment spending is an inverse one; the lower the interest rate, the greater the investment spending. It is illustrated by a downsloping investment...
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...curve. (4 marks) = = = 3000 + 0.3 (Y – 7000) + 2000 + 8000 + (15000 – 12000) 3000 + 0.3Y – 2100 + 13000 0.3Y + 13900 b) What is the equilibrium level of income (Y) of this economy? Please show your working clearly. Label this point “X” on the graph. (4 marks) At equilibrium, Y Y 0.7Y Y = = = = AE 0.3Y + 13,900 13,900 19,857 c) Calculate the multipliers in this economy? Please show your working clearly. (3 marks) There are 3 possible multipliers in this economy namely government, tax and balanced budget multipliers. G multiplier = = = = T multiplier = = = 1 / MPS = 1 / (1 – MPC) 1 / (1 – 0.3) 1 / 0.7 1.43 - MPC / MPS - 0.3 / 0.7 -0.43 = 1 Balanced budget multiplier d) Discuss the effect of an increase in autonomous Investment of $3,000 on the equilibrium income. (4 marks) Method 1 AE = 0.3Y + 13900 If autonomous investment increases by $3,000, AE = = At equilibrium, Y 0.7Y = = 0.3Y + 16900 16900 Page 2 0.3Y + 13900 + 3000 0.3Y + 16900 Y = 24,143 Method 2 Calculation can also be done using the multiplier. With multiplier of 1.43, any increase in autonomous investment will lead to overall increase of real output by 1.43 times. Hence, an additional $3000 of autonomous investment leads to 1.43 X 3000 or approximately 4,290 worth of additional output or new equilibrium of $24,143. e) If $22,000 is the “full employment” level of income, and the government’s goal is full employment, by how much must government...
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...output the blue line would shift up. 2. What are the tools of fiscal policy? Fiscal policy has 3 tools: 1. Increase or decrease government expenditures 2. Cut or increase taxes 3. Increase or decrease transfer payments 3. Explain the mechanism of government expenditures multiplier – why is the effect on the output greater than initial increase in government expenditures? The government purchases multiplier is ∆Y/∆G Initially, the increase in G causes an equal increase in Y, so ∆Y=∆G, But with increasing Y will be increasing C(Y-T) →further ↑Y →further ↑C →further ↑Y So government purchases multiplier will be greater than 1, it is same principal like with Bank’s creation of money when lending out. 4. Explain the mechanism of tax multiplier – why is the effect on the output greater than initial cut in taxes? Increase in taxes reduces consumer spending, which reduces equilibrium income. Firms reduce output, and income falls toward a new equilibrium. Tax multiplier is negative and smaller than G spending multiplier, because consumers save a fraction (1-MPC) of a tax cut so the initial boost is spending from a tax...
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