Complete first part of slideshow Aggregate Expenditure (AE); AE = C + I + G + X – IM I‚ G and X: autonomous expenditures Do not change with change in national income (Y) C and IM: induced expenditures Change with changes in national income (Y) Simple case: Only at C and I No government No foreign sector AE = C + I [C] Keynesian consumption function: Relationship between C and variables that influence it In simple case: C is influenced by disposable income Desired Consumption Expenditure
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Week 3 Homework 1. Some Classical and Monetarist economists claim that inflation is always a "monetary phenomenon." What do they mean by this claim and are they correct? They use the equation MV=PQ to show that any change in the amount of money in a system will change the price level. I believe that history shows they are correct‚ if the Fed reserve started printing a bunch of money without taking any out of circulation‚ then prices would go up for everything. 2. How can a higher price of oil create
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1. What are your chosen company’s marketing principles? Is this company trying to provide superior quality/value products‚ to have excellent services‚ to be innovative‚ to have a valuable brand name‚ or to understand competitors / consumers through market research capabilities... etc? How and where do you find this information*? You can find this from company’s mission statement‚ advertising slogans‚ and other places (e.g.‚ company’s website‚ information for investors‚ leaflets). *This is where
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today’s global economy‚ firms rely on the analysis of macroeconomic and industry data to develop performance improving strategies and increase their profitability. With this in mind‚ the following report consists of an analysis of the U. ... macro environment‚ the airline industry‚ and Delta Air Lines. It covers both a historic period from 1996 to 2000 and a current period from 2001 to the present. ... Even though there has been current significant improvement in GDP‚ there are new concerns regarding
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it has become an important tool for analyzing an organizations industry structure in strategic processes. Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially‚ competitive strategy should base on and understanding of industry structures and the way they change. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of
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Chapter 3 Consumption and Investment Consumption (C) and investment (I) Since we are more concerned with two sector model in our course‚ we will discuss about consumption and investment. In a two sector model‚ a simple but an imaginary assumption of no government and no foreign trade is made. Here Yd =C+S or Yd =AD (aggregate demand) This also implies that C+S=C+I Consumption Introducing you with: (Think yourself in advance) What is consumption? What is consumption function
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Feb. 15‚ 2015 Pepsi Blue Yanran YAN Pepsi Blue Case Analysis I. Strategic Situation In 1995‚ Pepsi-‐Cola International (PCI) headquarter planned to carry out a $500 million global brand identity and logo plan‚ also known as Project Blue. The plan failed to get support from regional executives. The better way to carry out a
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PEPSI WANTS TO GLOBALIZECASE STUDY OF INDIABYCHAUDHRY SHAHID MEHMOOD GUILDHALL COLLEGE Q.1 Why do companies like Pepsi to globalize? What are the various ways in whichforeign companies can enter a foreign market? What hurdles and problems didPepsi face when it tried to enter India during the 1980?Answer. Globalization is a term that refers to the acceleration and intensificationof mechanisms‚ processes‚ and activities that are allegedly promoting globalinterdependence.Pepsi like other big
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Coke Vs. Pepsi Interpret the results of your EVA calculation. If you had to choose between Coca Cola Co. and Pepsi Co‚ which one would you choose? Why? Both Firms EVAs are increasing from 2001 to 2003 _EVAs of Coca Cola is significantly higher than those of PepsiCo._ _EVAs insures that management perspective and objective is to maximize shareholders wealth‚ as such we would choose Coca Cola. The reason is because EVA is a measure of added value‚ and since Coca Colas EVA is
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(soon-to-get) MBA degree a form of Capital? The (soon-to-get) MBA degree is a form of capital from the perspective of knowledge and skills that is has allowed us to harness. While simultaneously being employed allows us to practice our learning in office environment from Business communication to CSR our (soon-to-get) MBA degree has covered it all. Amount of investment (fees for MBA) is the quantifiable basis that we would Capitalize and accrue dividends (benefits in our work life) in the form of accelerated
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