forecasts are used by both governments and large corporations to assist in the development and evaluation of economic policy and business strategy. Basic concept of macroeconomics: The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment‚ national income‚ rate of growth‚ gross domestic product‚ inflation and price levels. According to P.A Samuelson
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bad‚ the researchers would like to see if these natural disasters actually increase the GDP because it can be observed that during calamities‚ it can be expected that consumption increases drastically to match consumer needs as well as government expenditures boost up or drop down to compensate for at least a portion of the damages the typhoon caused. This paper will use data coming from the world bank with a time period of 1960 until 2013. Aside from that‚ this paper will use time series regressions
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Pakistan Development Review 40 : 2 (Summer 2001) pp. 107–114 The Stock Market and the Economy in Pakistan FAZAL HUSAIN and TARIQ MAHMOOD This paper re-examines the causal relationship between stock prices and macro variables like consumption expenditure‚ investment spending‚ and economic activity (measured by GDP) in Pakistan. Using annual data from 1959-60 to 1998-99 and applying cointegration and error correction analysis‚ the paper indicates the presence of long-run relationship between stock
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economy analysis has been divided into two major branches that is micro and macro economics. Micro economics means the economics system which deals individual economics unit on the other hand macro economics means the economics unit which deals aggregate as a whole that is national income‚ general employment‚ and total out –put‚ general price level etc. These two concepts first time used by PROF.R.FRISCH of Oslo university in 1933. But ‚later on these two concepts systematically explained by J.M
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important cause of recessions. To fight recessions- at least‚ those caused by insufficient demand rather than slow growth of potential output- policymakers must find ways to stimulate planned spending. Policies that are used to affect planned aggregate expenditure‚ with the objective of eliminating output gaps‚ are called stabilization policies. Policy actions intended to increase planned spending and output are called expansionary policies: expansionary policy actions are normally taken when the economy
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high for some period. Answer the following questions based on the scenarios of long macroeconomic equilibrium and consequent stock market boom. a) Which curve will shift? Is it AS curve or AD curve? In which direction does the shift occur? The aggregate demand curve will shift right b) In the short-run‚ what will happen to the price level and output (real GDP)? In the short run both the price level and real GDP will rise. c) What will happen to the expected price level? What impact does this
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which these effects take place is known as the monetary policy transmission mechanism. Flow Chart 1 details this mechanism in general terms. 1 Flow Chart.1 Monetary Policy Transmission Mechanism Interest rate channel Credit channel Aggregate
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Incorrect. An increase in taxes reduces disposable income and consumption. Hence aggregate spending and aggregate demand will fall‚ resulting in a decrease in the demand for labour. Incorrect. An increase in the interest rate reduces investment spending; decreasing aggregate spending and aggregate demand‚ resulting in a decrease in the demand for labour. Correct. Increased demand for exports will increase aggregate demand and production. Thus stimulating the demand for labour. Incorrect. An increase
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AKNOWLEDGEMENT Professional career of a quantity surveyor is depended on the cost controlling of the project. Main professional characteristic of the quantity surveyor is cost estimating to analyze the project cost of a project correctly whether it is a contractor’s point of view or client’s point of view. Therefore‚ being a professional quantity surveyor‚ knowledge in basic economic principles is very important feature. Economics is related to any industry in the word. Construction industry
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http://creativecommons.org/licenses/by-nc-nd/2.5/ or consult the last page of this guide. II. Basic Economic Measurements Gross Domestic Product Gross Domestic Product (Expenditures Approach) Expenditures approach: GDP = C + Ig + G + Xn C = personal consumption expenditures (durable consumer goods‚ nondurable consumer goods‚ consumer expenditures for services) Ig = gross private domestic investment (all final purchases of capital by businesses‚ all construction‚ changes in inventories) G = government purchases
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