M/J13 Paper 21 With the help of diagrams‚ analyze the factors that will lead to an increase in aggregate demand in an economy‚ and discuss whether this increase is more likely to have an impact on inflation or unemployment in that economy. [12] Aggregate demand is the total spending on an economy’s goods and services at different price levels in a given time period. It consists of 4 components which are consumption‚ investment‚ government spending and net exports. When curve for aggregate demand
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INTERNATIONAL BUSINESS AND COMMUNICATION MACROECONOMICS BACHELOR STUDIES 2010 11 08 Country Briefing: SOUTH AFRICA BACHELOR THESES Vilnius‚ 2010 In this country briefing I will present South Africa – a country from Sub-Saharan African region. GDP and Growth rate South Africa experienced a lot of economic downturns since the 1980s. The graph bellow shows South Africa’s GDP growth rate – in 2009 it was -1.8% because of the financial crisis in the world. Since 2007 South Africa has experienced
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Inflation goes Down to Three Years Low to 6.62 percent in January 2013 Published on: 15-FEB-2013 Data released by the Commerce and Industry Ministry reported that Inflation went down to its three year low of 6.62 percent in January 2013. SEBI ordered freezing of accounts and attachment of properties of two companies of Sahara Published on: 14-FEB-2013 Seizure of Bank Accounts of two companies of Sahara and attachment of its properties ordered by SEBI‚ the market regulator on 13 February 2013
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al Written Assignment) “Governments should play active roles in managing short-run instability in the economy caused by unemployment and inflation problems.” Do you agree with the above statement? Please explain your view. Governments should play active roles in managing short-run instability in the economy caused by unemployment and inflation problems. Unemployment Unemployment is the state where people are unemployed. This happens when there are new or re-entrant in the workforce or people
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How do you explain the rise and fall of the Bretton Woods system? How far the emergence of the Euro can be seen against the background of the need for exchange rate stability and the creation of an optimal currency area? 1) The rise and fall of the Bretton Woods system: The origins of the Bretton Woods system are to be found in the convergence of several key conditions: the shared experiences of the Great Depression‚ the concentration of power in a small number of states‚ and the presence of a
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Governments sometimes often encounter problems such as inflation and unemployment. Some respond the changes in taxation and government spending (fiscal policy)‚ others with changes in money supply and interest rates (monetary policy) what are the advantages and disadvantages of these two approaches? In this essay I will be looking at both of these fiscal and monetary policies and discuss the advantages and disadvantages of both of these policies. There are two main types of economic policies fiscal
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In 2009 the United States Government spent $950 billion in a fiscal stimulus package. Discuss the extent to which this stimulus will affect output‚ unemployment and inflation. (18 marks) Before we look into how the United States Government investment in a fiscal stimulus package effects output‚ employment and inflation‚ we must ensure we understand what is meant by a fiscal stimulus or policy. It is defined by economists as a package of economic measures put together by the government to stimulate
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In our mixed economy‚ there is a need for regulation and intervention on interest rates and the general level of economic activity. Australia’s current healthy economy has been developed partly through the functions of the Reserve Bank of Australia (RBA). Their functions include; conducting monetary policy‚ acting as a banker to the government‚ settling transactions between banks‚ and ensuring financial stability. The priority function of the RBA is conducting monetary policy. It is an action designed
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and their productivity can be seen. Or perhaps in the short term through a boost in demand side policies‚ such as a decrease in interest rates to encourage consumer spending‚ however such demand side policies are short-lived due to the accompanied inflation and therefore are unlikely to be the sole
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Explain how the International Gold Standard that emerged in the half-century before 1914 can be interpreted as a system of ‘fixed exchange rates’. Hence discuss the advantages and disadvantages of the Gold Standard as a policy regime. The International Gold Standard that emerged during the late nineteenth century and continued through to the early twentieth century‚ also know as the classical Gold Standard‚ was of paramount importance in an era where international trade grew exponentially. Most
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