• An increase in money supply causes inflation. (positive statement). • Government budget deficits are higher during recessions. When the government spends more than it collects in revenues‚ recessions result. (association by causation). • Macroeconomics is the study of nation and global economics without assuming individuals are rational. • Increase in the income of consumers would result in an increase in the equilibrium price of iPods. • A market allocation system leads to the increase of
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Varrian Ilao Take Home Quiz TM09306 Basic Macroeconomics 1. Suppose that society decided to reduce consumption and increase investment. a. How would this change affect economic growth? * Doing so will definitely affect the cash flow within the community making it hard for companies to gain profit. Prices will surely be lowered down‚ and stocks might be put to waste since there are so much available. b. What groups in society would benefit from
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Society must have a proportionate exchange in the way economic conditions are ran. Economically‚ a society must run efficiently‚ but most importantly‚ it must run equally ( Mankiw1-1a). In the text "Brief Principles of Macroeconomics‚" author Gregory Mankiw acknowledged to us that‚ "equality means that those benefits are distributed
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This essay will analyse the aforementioned issues surrounding the causes and severity of the current recession‚ governmental responses to the economic crisis‚ and how these responses differ from the Great Depression‚ in the context of relevant macroeconomic theory in order to reach an informed conclusion regarding the effectiveness of contemporary government intervention. The subprime mortgage is widely agreed to have been the catalyst for the recession as a whole. There were‚ however‚ a number
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Econ 301 Intermediate Macroeconomics‚ Professor __________ Park University Online‚ Fax _________________ Final Exam (Weight 300 Points) STUDENT’S NAME ______________________________ Multiple choice Questions. (Weight 5 points each) Choose the best answer. 1) The unemployment rate is the number of ? 2) The value of steel sold to an automobile producer is __________ directly included in the GDP because __________. 3) In the simplest Keynesian model of the determination of income‚ interest
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Company overview Key information of the Woolworth Woolworth (WOW) is an Australia corporation with more than 195‚000 employers which operates business in grocery stores industry which was founded by Percy Christmas in 1924 (Woolworths‚ 2012). Its manages 3‚000 stores which are located in New Zealand‚ Australia and India serving 28 million consumers for liquor‚ span food‚ petrol‚ home improvement‚ hotel and general merchandize (Woolworths‚ 2012). First‚ the company WOW operates supermarkets under
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Course: Macroeconomics Sec: 04 Instructor: Biplob Kumar Nandi Lecturer Department of Economics Assignment Submission Group Name: “Motivators” Group Members: |Name: |ID No: | |Himel Roy |2010-3-10-121 | |Md. Imrul Hasan
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Summary of the Russian Economic Policies March 21‚ 2011 Differences in Fiscal Policy of our Countries Several differences in Russia’s Fiscal Policy from the other countries are the multiple measures that are available to evaluate the performance of fiscal policy. Russia’s debt-stabilizing surplus funding through the Russian Central Bank is Russia’s most appropriate measure when evaluating its ability to sustain the public debt in the long-term. Russia currently has the third largest GDP
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MACRO PERSPECTIVE ( AIRLINE INDUSTRY) Economical can be one of the major factors for the airline industry. Due to the rate of war and terrorist event‚ the growth rate of economy dramatic slowdown‚ capacity demand‚ which gains the low yield to the airline industry. Moreover‚ oil prices increase also affect their profits. The social sector‚ which are strongly from employment perspective and safety. The technology in airline industry is fast moving‚ however it’s very costly. Alliance gives the
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1. Inflation is most likely to result from a(n): Under normal circumstances‚ a short-run trade-off exists between the rate of inflation and the rate of employment. Aggregate supply shocks can cause both higher rates of inflation and higher rates of unemployment. 2. Assume contracts between workers and employers that call for an increase in the wage rate of 5% are based on an expected inflation rate of 3%. Should inflation actually be 6% then: Yes 3. From the perspective of supply-side economists
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