Written Assignment Unit Four, Macroeconomics Some economists have said that one's income determines the amount one saves, but the interest rate determines how it is saved—cash, checking accounts, savings accounts, bonds Introduction Saving as a whole may be look at differently according to different minds. Some may say that saving is the act of putting money in the bank or buying stocks or contributing to pension plan. To economists, saving means consuming less out of a given
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Macroeconomic Analysis: Project II Class: ECON545 4/12/2011 Introduction to Situation The paper analyzes and summarizes how the automotive industry is impacted by the macro economy. In helping my friend Rick expand his small manufacturing plant that produces parts for the auto industry, I’m going to identify a brief history of the automotive industry, how it impacts the GDP, the unemployment rate, and the inflation rate as measured by the Consumer Price Index (CPI). The supply
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Intermediate Macroeconomics 2 Coursework Question 1 a) The production function is Y=AKαL1-α as it is a constant-returns-to-scale production function. Computing the Solow residual giver you ∆AA , which is the rate of technological progress. From the question: α=0.2 ; ∆LL=n=0.01; ∆KK=0.07 ; ∆YY=0.05 Taking natural logarithms of the production function gives: ln(Y)=ln(A)+αln(K)+1-αln(L) Taking the first difference of both sides yields: ln(Y)-ln(Y-1)=ln(A)-ln(A-1)+α(lnK-lnK-1)+1-α(ln(L)-ln(L-1))
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OUTLINE I. A brief description of this country in terms of demographics, language, currency, political system, predominant industries, and current (i.e. last year) economic indicators such as nominal GDP, GDP per capita, unemployment, budget deficit (% of GDP), balance of payments accounts (% of GDP), and inflation. II. Brief description of the behavior of various economic indicators at the last 20 years III. Brief description of the behavior of various economic indicators for at
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Introduction Bangladesh is a country of more than 140 million people, and it is one of South Asia’s least developed countries. The country has under gone a major shift in its economic philosophy and management in recent years. At Bangladesh’s birth, the country embraced socialism as the economic ideology with a dominant role for the public sector. But, since the mid-seventies, it undertook a major restructuring towards establishing a market economy with emphasis on private sector-led economic growth
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1. Executive Summary France is one of the world’s five leading economies, as measured by GDP, has highly developed social and welfare model and is led by the socialist government. Though it scores well against numerous indicators of well-being, the state of economy is far from optimal. In this report we provide the brief economic outlook of France in 2014. It shows that the main challenges are the big budget deficit that leads to high government debt, too-high-taxes that slow the growth of the
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Fundamentals of Macroeconomics Kevin Conrad ECO 372 Paul Updike May 5, 2014 Part 1 • Gross domestic product (GDP) – The total market value of all the products and services a country provides or consumes over the course of one year. • Real GDP - The total market value of all the products and services a country provides or consumes over the course of one year based on prices of a given year. • Nominal GDP - The total market value of all the products and services a country provides or consumes
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Purchasing groceries is an activity which involves purchase and sale at a price level. It creates demand for the groceries at a price which covers the cost of production including wages. If we take a two sector model of economy, it has the Household and the business. The household owns the wealth of nation including land, labor, capital used in the production of goods and services, while the business or the firms produce goods and services by hiring the factors owned by the households. The households
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FISCAL POLICY & MACROECONOMIC MODELS There are three macroeconomic models in which to analyze the effects of changes in fiscal policy: Keynesian, Monetarist and Classical. Keynesian Model The Keynesian model focuses on attempting to manage the “Demand” side of the economy by using taxation and spending to redistribute income and wealth. The rationale is that redistribution of income and wealth via taxation and use of transfer payments [government spending] will drive the “Demand” function
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Question 1 1.1 The three basic purposes of macroeconomic theories are: • To explain how different items are associated in the complex real economic world. In the economic environment there are unlimited wants, but the means of getting those wants are limited due to insufficient resources to satisfy all possible uses. Therefore some resources must be given priority over others. Example: Gold has a higher value than quartz in the economic world. Gold is scarcer than quartz, so gold is a higher priority
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