under code 541511) (U.S. Census Bureau, 2007). Macroeconomic Variables There are numerous macroeconomic variables that can affect a business such as Gross Domestic Product (GDP), inflation, trade, interest rates, and unemployment. GDP is defined as the market value of all goods and services produced in an economy (McConnell & Brue, 2004). Increases in the GDP are a strong indicator of positive economic growth which equates to more disposable income for consumers and businesses. Likewise, a decrease
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Running Head: MACROECONOMICS TERM PAPER 1 Macroeconomics Term Paper MACROECONOMICS TERM PAPER 2 Abstract Using the required United States economic indicators the federal government uses to guide the economy, I researched and analyzed each indicator by comparing the data from 2010 to that of 2011. Even though a large number of economists are
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recession in 2009. An Government spending is an injection into the circular flow of income, while taxation is a leakage. Accordingly, government borrowing results in a net injection of aggregate demand to the economy, helping to generate business for firms and support output. This can be boosted by multiplier effects as the injection creates incomes for firms and workers, allowing them to spend and create income for others. Jobs are also created because the demand for labour is derived from the demand
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Vietnam National University, Hanoi UNIVERSITY OF ECONOMICS AND BUSINESS Macroeconomics Home work 1. Measuring a Nation’s Income Section 1: Multiple choice questions 1. In producing a sweater, a man who shears sheep pays a farmer $4 for a sheep. The shearing shop sells the wool to a knitting mill for $7. The knitting mill buys the wool and makes it into a fine fabric and sells it to a sweater-making firm for $13. The sweater-making firm sells the sweater to a clothing store for
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a free market economy, especially after more fundamental reforms since 1991 and their renewals in the succeeding years. The liberalized regime has paved the way for increasing direct and indirect investments in different sectors pushing level of income and employment in the
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SIX DEBATES over MACROECONOMIC POLICY SIX DEBATES over MACROECONOMIC POLICY ISSUES | YES | NO | 1. Whether or not monetary and fiscal policymakers should try to stabilize the economy | Advocates of active monetary and fiscal policy view the economy as inherently unstable and believe that policy can manage aggregate demand, and thereby, production and employment, to offset the inherent instability. When aggregate demand is inadequate to ensure full employment, policymakers should boost
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Mankiw, Macroeconomics 8e Chapter 3 1. The returns to scale in the production function Y = K0.5L0.5 are: A. decreasing. B. constant. C. increasing. D. subject to wide fluctuations. 2. If a production function has two inputs and exhibits constant returns to scale, then doubling both inputs will cause the output to: A. reduce by half. B. stay the same. C. double. D. quadruple. 3. If the supplies of capital and labor are fixed and technology is unchanging, then real
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eriod. Answer: B Topic: GDP Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 3) Gross domestic product is a measure of the total value of all A) sales in an economy over a period of time. B) consumer income in an economy over a period of time. C) capital accumulation in an economy over a period of time. D) final goods and services produced in an economy over a period of time. Answer: D Topic: GDP Skill: Recognition Question history: Previous edition
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individuals with a method of compensation based on the amount of labor is Socialist Fixed Capital is Equipment and machinery Working capital is not Equipment and machinery “Wealth is a value created in production due to labor and non labor income” is belonged to Smith Value which can bring additional value –Surplus value is belonged to Marx “ Capital reflects
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the level of productive resources so there is a minimum level of income. C. how people, institutions, and society make choices under conditions of scarcity. D. the efficient use of scarce resources paid for at the minimum level of cost to consumers and businesses. 2. The primary focus of the study of economics is with: A. expanding the production of goods and services. B. equalizing the distribution of consumer income and wealth. C. making the most efficient use of scarce productive
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