Sample Macroeconomics Questions for Class Test II (Prepare all questions for 20 marks each) 1. What are factor prices? How are factor prices determined according to Classical theory of income and output? 2. Explain the effects of the followings on economy according to Classical Theory of Income and Output: a) The new government in Nepal has taken initiatives with the assumption that there is no alternative to reconstruct the once demolished infrastructures to rebuild Nepal into a more prosperous
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be taught? In this lecture I will consider only those bits of pre-crash orthodoxy relevant to policy making‚ with main emphasis being on UK developments. Theories of expectation formation played an overwhelming part in shaping the theory of macroeconomic policy; with changes in the way economists modelled expectations marking the different phases of theory. I will treat these in roughly chronological order‚ starting with the Keynesian theory. II.UNCERTAIN EXPECTATIONS Keynesian macro theory dominated
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Balance‚ Inflation And Interest Rate: How Do They Impact The Malaysian Economy? By Siva Kumar Kandiah (Matric No: 89306) ___________________________________________________________ Abstract This article seeks to find which of the macroeconomic variables among FDI inflow‚ current account balance‚ inflation and interest rate play a significant role in economic growth in Malaysia using the SPSS Regression method for a time period of 14 years from 1995 to 2008 (Oct). The results of the research
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consumer spending. A broader look at the state of the economy reveals that the economy is headed for a recovery. Most core sections of the economy have begun to register growth meaning that soon the economy will bounce back (United Nations‚ 2010). Macroeconomic Snapshots and Forecast Several surveys have been conducted to determine the financial situation of United States. Executives ’ sanguinity about the budget has continued to propagate over the past months‚ rendering to the outcomes of a McKinsey
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usually occurs. People do not have enough food to eat and often violence breaks out as people desperately try to feed their families. Definition of Macroeconomics Definitions of Macroeconomics "Macroeconomics is that part of economics which studies the overall averages and aggregates of the system." (Kenneth Boulding) "Macroeconomics Macroeconomics is the study of economics in terms of whole systems especially Explanation of economic stability A term used to describe the financial system
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Capital Flows to Sub-Saharan Africa: What’s the Real Story? Paper presented at Seminar‚ A New Paradigm of Financing Development and Development Cooperation‚ March 1997‚ Stockholm. Kasekende L.‚ D. Kitabire and M. Martin (1998). “Capital Inflows and Macroeconomic Policy in Sub-Saharan Africa”‚ in G.K.Hellier (1998). Capital Accounts Regimes and Developing Countries (London: Macmillan Press) Kasekende L UNCTAD (1999)‚ “Foreign Direct Investment in Africa: Performance and Potential”‚ (New York and Geneva
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countries. How the recession affects an economy depends‚ among other things‚ on the state of the economic fundamentals of the country when the recession sets in. Economies with sound macroeconomic indicators will be able to face the recession with expansionary policies. However‚ countries with poor macroeconomic indicators at the onset of the recession can follow the expansionary policies only at the cost triggering a crisis of greater proportion. The global recession has posed policymakers
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of study: microeconomics and macroeconomics. Microeconomics looks at the smaller picture and focuses more on basic theories of supply and demand and how individual businesses decide how much of something to produce and how much to charge for it. Macroeconomics‚ on the other hand‚ looks at the big picture (hence "macro"). It focuses on the national economy as a whole and provides a basic knowledge of how things work in the business world. Microeconomics/ Macroeconomics and Managerial Economics have
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the aggregate demand changes‚ depends on the multiplier. If the multiplier is big the government spending will magnify by more. Therefore it’s hard to estimate how much AD will increase‚ it’s hard for the government to fine-tune to meet its macroeconomic objectives. A third disadvantage would be that it affects government budgets. This is because fiscal policy refers to any uses of the government budget to affect the economy. Which include levied taxes and government
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government expenditure and revenue in order to influence the economy and fund public goods and services. Fiscal policy is the main instrument government uses in order to try and create economic growth. However its actual effectiveness at meeting this objective is arguably not that good for a number of reasons which will be discussed in this essay. The main part of fiscal policy in order to increase growth is expansionary fiscal policy. This is where the government is spending more or cutting taxes in
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