output gap and its coherency to inflation. Secondly‚ it shows the measurement of output gap and finally‚ it highlights inflation and means of monetary policies to avoid inflationary pressure. All theoretical explanations are underpinned by data of the UK economy’s current situation. The report will be concluded by evaluating the data. The output gap The term output gap (GDP gap) describes the difference between the potential an economy can sustainably produce (potential output) and the actual economic
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Question 1: Assume that Econoland produces haircuts and shirts with inputs of labor. Econoland has 1000 hours of labor available. A haircut requires ½ hour of labor‚ while a shirt requires 5 hours of labor. Construct Econolands PPF. Answer 1: To construct Econolands Production Possibility Frontier (PPF) we first need to understand what is a PPF. A production possibilities frontier (PPF) is a graph showing the different quantities of two goods that an economy can efficiently produce with limited
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Classical and Keynesian Economic Theories Economics can be defined as a social science concerned primarily with description and analysis of the production‚ distribution‚ and consumption of goods and services. There are two main schools of thought when it comes to economics: Classical and Keynesian economics. Each theory takes a different approach to the economic study‚ but neither approach is flawless. First‚ looking at the Classical economics theory‚ it is based largely on the thought that free
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Macroeconomics Exam 1 Instructor: Prof. Phelps Name: Results: Class: Period: Date: Read each question carefully then circle the correct answer. When you are finished transfer the answers to the Scantron sheet. Make sure that you enter your name on both the exam and the scantron sheet. You have 1 hour to complete the exam. 1. For economists‚ the word "utility" means: a) versatility and flexibility. b) rationality. c) pleasure or satisfaction.** d) purposefulness
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1. From the definition of GDP we arrive at the following expression: c + i + g + x-m = y = c + s + t Discuss the three important economic relationships that can be derived from this expression related to the definition of GDP and explain each carefully. The expression above depicts two different ways to come up with real GDP for a country. The left side of the expression explains expenditure side of computing real GDP which can be rewritten as: y = c + i + g +x – m In real terms‚ it could
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Contents 1. Introduction 2 1.1 Why this industry was chosen for analysis 2 1.2 Aim 2 1.3 Brief Background of the organic food producing industry 2 1.4 Competitive environment? 3 2. PESTEL analysis 5 2.1 Political factors 5 2.2 Economic factors 6 2.3 Socio-cultural factors 7 2.4 Technological factors 8 2.5 Environmental factors 9 2.6 Legal factors 10 3. Porter’s Five Forces analysis 12 3.1 Threat of new entrants 12 3.2 Threat of substitute products 14 3.3 Threat of established
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What is the macro gross anatomy? The macro gross anatomy is the study of organisms with the naked eye. What is the skeletal system? The skeletal system is a very important part of the human body this consists of 206 bones‚ which together with different structures make the joints of the system. Within the skeletal system the structures present are the cartilage‚ bone tissues‚ fibrous connective tissues which form the ligaments of the bones Scanlon and Sanders‚ pp.122‚ 2014). The skeletal system
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of consumer electronics‚ computers and telecommunication developed as separate‚ distinct industries. Digitization changed the rules of the game‚ demolishing walls‚ blurring the distinction between once separate industries and building a $ 300 billion industry. Changes are driven by wide spread internet usage‚ “on the go” life styles‚ cutting edge innovation and digital convergence. This multibillion Industry is run by key players such as Apple‚ Sony‚ Dell‚ RIM‚ Samsung & LG. Apple Inc.‚ is an American
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2030‚ the UK is projected to remain the sixth largest economy in the world (at market exchange rates)‚ falling behind India but moving ahead of France. • On a regional scale‚ we expect the UK to become the second largest EU economy before 2020‚ as it overtakes France‚ and to narrow the gap with Germany by 2030. •Our updated ESCAPE Index for 2013 shows that the UK ranks fifth in the G7 in 2013‚ down from 3rd in 2000 and 2007. This reflects the relatively deep recession suffered by the UK in 2008-9
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do for the various cultures. Therefore‚ multiculturalism appears in people’s vision. Especially in large cities‚ there are diverse cultures from all around of the world and they usually have influences on each other. For example‚ larger cities in the UK‚ such as London‚ Birmingham or Manchester are often described as being multicultural. In last ten years‚ multiculturalism has aroused widespread concern. While some people believe that multiculturalism is appropriate for a 21st century society‚ others
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