ECON 201 Macroeconomics Test #1 Study Guide CHAPTERS 1 and 2 Introduction and Economic Models 1. Define economics. Differentiate between macro and microeconomics. 2. Explain the concept of scarcity. 3. Explain how marginal costs and marginal benefits influence incentives and choice. 4. Define and explain the difference between efficiency and equity. 5. What is the difference between positive and normative economics? 6. What is ceteris paribus? 7. Explain the concept of opportunity
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1. An unplanned increase in inventories results in A) an increase in planned investment. B) a decrease in planned investment. C) actual investment that is greater than planned investment. D) actual investment that is less than planned investment. 2. The ratio of the increase in ________ to the increase in ________ is called the multiplier. A) equilibrium nominal GDP; autonomous expenditure B) equilibrium real GDP; autonomous expenditure C) autonomous expenditure; equilibrium real GDP
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1. What is the difference between micro and macroeconomics? Economics covers a large area of economic concerns and is divided into two parts: Microeconomics and Macroeconomics. Microeconomics studies the actions of the individual actors within the economy‚ such as buyers‚ sellers‚ and businesses. Additionally‚ microeconomics allows the actors to differentiate the values from one decision to another. While macroeconomics examines a larger picture of the economy by studying the employment‚ incomes
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1. INTRODUCTION: The movement of stock indices is highly sensitive to the changes in fundamentals of the economy and to the changes in expectations about future prospects. Expectations are influenced by the micro and macro fundamentals which may be formed either rationally or adaptively on economic fundamentals‚ as well as by many subjective factors which are unpredictable and also non quantifiable. It is assumed that domestic economic fundamentals play determining role in the performance of stock
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Monetary policy and its effect on macroeconomic factors Michele Fludd MMPBL/501 April 11‚ 2011 Caryn Callahan‚ Ph.D. Monetary policy and its effect on macroeconomic factors The extremely large number of money exchanges that occurs each day all over the world form a highly complex web that is very resistant to analysis. However‚ it must be understood that the basis rules of money creation that govern these exchanges are readily understood and very simple. How money works is a little complex
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Macroeconomic Variables & Its Impact on KSE -100 index MACROECONOMIC VARIABLES & ITS IMPACT ON KSE -100 INDEX BY MUHAMMAD SALMAN KHAN ABSTRACT Stock exchange or secondary market plays pivotal role of an economy. From it one can easily guess the overall economy of the county. From various factors‚ stock market is dependent and the impacts of these factors are clearing i.e. positive or negative. Macroeconomic variables in economy that influence the stock exchange and macroeconomic variables that
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INDIA – MACROECONOMIC INDICATORS 1 Macroeconomics Project INDIA - Macroeconomic Indicators (2006-07 to present) Course Instructor Prof. Leena Mary Eapen Project Team PGP/15/13 Devanand Prasad PGP/15/36 Priyanka ruttala PGP/15/49 Shashikant Bapatla PGP/15/55 Sri K Srinivas PGP/15/61 Vijeta Shrivastava FPM/05/05 Janardan K Yadav FPM/05/04 Chacko Jacob INDIA – MACROECONOMIC INDICATORS 2 EXECUTIVE SUMMARY -------------------------------------------------------------------------------------------------------------------An
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Macroeconomics – the study of economic activity in the whole economy. It includes the study of: Economic growth – a steady rate of increase of national output Employment – a low level of unemployment Price stability – a low and stable rate of inflation External stability – a favorable balance of payments position Income distribution – an equitable distribution of income Circular flow of income model – the movement of spending and income through the economy. In a macroeconomics equilibrium
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Contents Page Executive Summary – Page 1 Main Reports – Page 2 Appendices – Page 6 References – Page 9 Executive Summary page The Current State of the Economy ( Overall: The Swedish economy experienced severe recession from 2008 due to global finance crisis. However‚ thanks to the active fiscal supports from the Swedish government and sound credits from consumers‚ Sweden is recovering relatively quickly from the recession. ( Export and import: Due to the recession‚ both imports
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Year 11 Economics Research Task Fiscal policy: 2007- 2013 The government during the period from 2007- 2013 developed a strong Fiscal policy stance. In the years Prior to the Global Financial Crisis (GFC)‚ the government decided to take a countercyclical approach to the economy through Fiscal policy as they had seen the unstable increase in levels of spending and the levels of saving. This is shown in diagram 1‚ government spending was at low point in the previous decade of 31.5 %. In the year
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