BU204-01: Macroeconomics Unit 5 June 17‚ 2013 Unit 5 Assignment There are 2 parts to this Assignment: PART 1: Comparing Growth Rates First‚ prepare yourself for the Assignment by reading the following three articles or webpages: Professor Dave Alber’s Lecture can be found in the Doc Sharing area of the course. Abler‚ D. (n.d.) Notes for a Lecture on Economic conditions in developing countries. Copyright permission granted September
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ECOS2002 – Intermediate Macroeconomics Tutorial Questions Topic: ‘Fiscal Policy and the Open Income-Expenditure Model’ Tutorial 2: Week 4 (19-23 August) NB: The readings for this tutorial are indicated in Topic 2 of the reading guide. 1. In the Keynesian theory of output what is mechanism that brings about the equilibrium level of output determined by aggregate demand? 2. ‘The stance of fiscal policy cannot be measured by the size of the actual budget deficit.’ Why
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Chapter 36: Six Debates over Macroeconomic Policy 1. Should monetary and fiscal policymakers try to stabilize the economy? 2. Should the government fight recessions with spending hikes or tax cuts? 3. Should monetary policy be made by rule rather than by discretion? 4. Should the central bank aim for zero inflation? 5. Should the government balance its budget? 6. Should the tax laws be reformed to encourage saving? Debate #1 1. Should monetary and fiscal policymakers try to stabilize the economy
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Macroeconomics textbook notes Chapter 2: A Tour of the Book 2.1 Aggregate Output Aggregate: means “total” The measure of aggregate output in the national income accounts is gross domestic product (GDP) 3 ways of thinking about an economy’s GDP GDP is the value of the final goods and services produced in the economy during a given period Intermediate good is a good used in the production of the final goods and is not counted toward GDP GDP is the sum of value added in the Economy during a given
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is not the correct combination for a U.S. president and an important economic issue of his administration? Answer Selected Answer: President Clinton‚ inflation Correct Answer: President Clinton‚ inflation . Question 3 . Macroeconomic models are used to explain how ______ variables influence ______ variables. Answer Selected Answer: exogenous; endogenous Correct Answer: exogenous; endogenous . Question 4 . The total income of everyone in the economy
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Macroeconomic Conditions and Selected Trends Gross Domestic Product (GDP) is an economic indicator used to measure a country’s total output. It includes everything produced by all the people and companies in the country. In order to compare GDP from one year to the next it is important to use what is known as Real GDP. Real GDP makes a distinction by forgoing income from U.S. companies and people outside the country‚ which would contribute to GNI‚ removing the effects of inflation and only counting
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Assume that initially the economy is at the equilibrium level of output where aggregate demand equal to aggregate supply and this is shown diagrammatically below. Aggregate demand is the quantity of total output demanded at a given price level and comprises total of all the consumption and investment goods and services as well as the required goods and services of the government and net exports. A sustained appreciation of the local currency would bring about negative effects to the economy in the
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Discuss how far recent UK economic policy has been successful in achieving the macroeconomic objectives. The four main macroeconomic objectives are: full employment‚ price stability (low and stable inflation)‚ sustainable economic growth‚ and a healthy Balance of Payments. A diagram showing unemployment and jobseekers allowance in the UK: On the diagram shown above‚ unemployment within recent years (2008-2013) is seen to be increasing. In 2011 unemployment peaked at 2.6 million which around
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1) Use the AS/AD framework to show the separate effects on GDP‚ inflation and public sector borrowing on any single national economy of: a) cut in public spending b) an increase in the rate of VAT (sales tax) c) a slowdown in the GDP growth of less developed economies. (Make sure that you include clear and appropriate diagrams for this question) According to Begg and Ward (2009) fiscal policy is the government’s decisions regarding taxation and spending to influence level
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EXECUTIVE SUMMARY The following paper will start by examining the macroeconomic state of Germany by citing real changes in fiscal and monetary policies‚ exchange rates and international trade. It will then analyze their influences and consequences on the economy and will finally conclude with a general comparison to the US economy and a future outlook for Germany itself. In the beginning of the millennium‚ Tax Reform 2000 was implemented‚ the largest tax relief act in Germany’s post-war history
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