more than one word responses but some evidence‚ in your own words‚ that you understand what these concepts mean. Your completed document should be uploaded to D2L – BUSA 2720 – Economics Assignment. Students will be called at random to answer and explain your responses in next week’s lab. Please include your source (URL) and the date of the information. Each two-person group uploads one copy to the D2L dropbox for this assignment. Paper copies‚ late submissions or uploading to the wrong dropbox
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horses” at the same time. A rising inflation rate coupled with a currency appreciating at a fast rate‚ is destabilizing the economy. With inflation rising at a rate of 6.3%‚ soon it will rise above the Central banks maximum target of 6.5%. Alongside‚ the Real has appreciated to 1.58 reais to a US dollar which is one of the highest rates since the Real has been allowed to float from 1991. The problem is such that the “economic cost of bringing down inflation is too high”‚ as this will harm the
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Macroeconomics Problem Set 1 1. Explain why an economy´s income must equal its expenditure 2. List the four components of GDP. Give an example of each 3. Why do Economists use real GDP rather than nominal GDP to gauge economic well-being 4. What component of GDP (if any) would each of the following transactions affect? Explain a. A family bus a new refrigerator b. Jane buys a new house c. For sells a Thunderbird from its inventory d. You buy a pizza
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to increase‚ decrease or remain unchanged? Explain why. (2 marks each) a Price falls and demand is elastic; b Price rises and demand is elastic; c Price falls and demand is unitary elastic; d Price rises and demand is unitary elastic; e Price falls and demand is inelastic. Question 2: a Define‚ describe and illustrate with a diagram‚ one opportunity cost for a person starting up their own business (2 marks) b Explain the difference between
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The four most fundamental factors that affect the cost of money are: production opportunities‚ time of consumption‚ risk and inflation. The interest rate given to savers is based on: the rate of return on invested capital‚ savers time preferences for current versus future consumption‚ the riskiness of the loan‚ the expected future rate of inflation. High inflation and high risk will result in high interest rates. b. What is the real risk-free rate of interest (r*) and the nominal risk-free
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Midterm Intermediate Macroeconomics 1. How are presidential election outcomes related to the performance of the economy? Presidential elections and the economy have a very close relationship and they go together hand and hand. Usually when the economy is good and opinion of the government is positive‚ the incumbent or the party of the last president wins the election. People tend the lean towards why change a good thing. A couple of theories exist in the relationship of the economy and presidents
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ECON - 1042 MACROECONOMICS 2 COURSE GUIDE SEMESTER 1 - 2013 COURSE CODE ECON-1042 COURSE NAME Macroeconomics 2 DURATION One Semester CREDIT POINTS 12 points WEEKLY CONTACT HOURS 3 hours per week for 12 weeks WEEKLY NON-CONTACT HOURS 9 hours PREREQUISITES ECON-1010/EF110 /MEF110 Macroeconomics 1‚ or equivalent ASSESSMENT Two tests worth 20% each One two-hour final examination worth 60%
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concepts that you are unfamiliar with‚ refer to the Student Guide for that particular week. The Student Guide provides a breakdown of the readings that align to the Final Examination questions. Week One: Principles of Economics Objective: Explain how the principles of economics relate to decision-making‚ interaction‚ and the workings of the economy as a whole. 1. Economists make use of assumptions‚ some of which are unrealistic‚ for the purpose of a. teaching economics to people who have
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policies‚ exchange rates‚ inflation‚ money supply‚ interest rate‚ foreign direct investment‚ law & order situation‚ political instability‚ security problems (terrorist attacks) Gross domestic product growth rate‚ judiciary crises. Foreign AID is also incredibly vital for the economy of Pakistan and stock market. For this purpose to find out the impact of macroeconomic variables on stock exchange‚ four unlike variables are supposed to study i.e. exchange rates‚ interest rates‚ inflation and GDP (Gross domestic
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PRINCIPLE OF MACROECONOMICS 1.0 Content No. Topic Page 1.0 Content 2 2.0 Introduction 3 3.0 Discuss the cost of inflation and the dangers of deflation. 4 4.0 Discuss the nature and the roles of money. 8 5.0 Explain how banks can add to the money supply by making loans of money they are not required to hold in reserve. 10 6.0 How hyperinflations are caused by governments resorting to seignorage. 13 7.0 Conclusion 16 8.0 Reference 17 9.0 Coursework
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