school with over 2‚000 students‚ is in full operation. Grenada is a member of the Eastern Caribbean Currency Union (ECCU). The Eastern Caribbean Central Bank (ECCB) issues a common currency for all members of the ECCU. The ECCB also manages monetary policy‚ and regulates and supervises commercial banking activities in its member countries. Grenada is also a member of the Caribbean Community and Common Market (CARICOM). Most goods can be imported into Grenada under open general license‚ but some
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As a result‚ the traditional policy responses within this school of thought no longer sought to alleviate the economic problems. Consequently‚ this resulted in the New-Keynesian framework which forms the current mainstream thought in macroeconomics. Ultimately‚ New-Keynesian aims to
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Session Objectives Topic 10 Macroeconomic Factors Define macro-economic policy Explain the main determinants of the level of business activity in the economy and how variations in the level of business activity affect individuals‚ households and businesses © accountingclassroom.com 2008 Student Notes for ACCA F1-Accountant in Business © accountingclassroom.com 2008 Student Notes for ACCA F1-Accountant in Business Session Objectives Explain the impact of economic issues on the
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shift in aggregate supply. 6. Define inflation. Distinguish between demand pull inflation and cost push inflation. 7. Distinguish between expansionary fiscal policy and expansionary monetary policy. 8. Distinguish between contractionary fiscal policy and contractionary monetary policy. 9. Market oriented supply side policies are better than interventionist supply side polices to boost economic
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Chapter 13 Fiscal Policy * Government funds many programs through tax revenues * Government transfers- payments by the government to households for which no good or service is provided in return * Social insurance programs- gov. programs (transfer payments) intended to protect families against economic hardship * Social security * Medicare * Medicaid * Gov. purchases- national defense and education are the biggest categories
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form of expansionary fiscal policy. Goods and services produced by property and labor in the U.S. is a form of GDP. The rise of the prices of goods and services in an economy is a form of inflation. (North‚ january ) Fiscal Policies and Monetary Policies can affect the macroeconomic variables in an economy by the distribution of income in the economy‚ the level of economic activity and aggregate demand and the resource allocation within the government sector and the private sector. Monetary policy
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(Velocity of Circulation) * Y = RGDP * NGDP = P*Y * Output gap = Y* - Y * Recessionary Gap = Y*>Y; positive output gap; resources not fully utilized; in UE rate; can be closed by government purchases * Expansionary Gap = Y*<Y; negative output gap; resources being over utilized; in UE rate *
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Although‚ it had occurred to our mind that Nigerian monetary policy continues to aim at achieving single digit inflation‚ a stable Naira‚ increase in domestic production and a stock of foreign exchange reserves equivalent of at least six months of current imports‚ the Central Bank of Nigeria (CBN) relies on Open Market Operation (OMO)‚ Cash Reserve Operations‚ Minimum Liquidity Ratio‚ Discount Window Operations (OWO) etc‚ to control growth in monetary aggregates‚ changes in minimum re-discount rate (MRR)
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fiscal policy might play in the Australian economy. Possible roles for Fiscal Policy: (i) Aggregate Demand Management for Full Employment Increase G or cut T‚ to increase AD and reduce Unemployment But time lags in recognition‚ implementation‚ and effects for inflexible Fiscal Policy‚ and “crowding out” of private investment expenditure are problems. (ii) Fiscal Policy to Reduce Inflation Cut taxes to reduce costs‚ increase productivity (iii) Fiscal Policy as the Servant of Monetary Policy
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assessed. Home mortgage rates are as low as 2.26% in some areas. The Federal Reserve stated in August that they were going to further steps to stimulate growth if the job market does not show sustained improvement (U.S. Federal Reserves leaves monetary policy unchanged‚ August). Interest rates are defined as "the prices that are charged or paid for the use of financial asset." Many people refer to credit as "other people’s money" this usually involves borrowing money from the bank or from family members
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