PURPOSE The purpose of the assignment is to enhance learners’ understanding of how fiscal policy can be used to achieve economic goals. REQUIREMENT Discuss and evaluate how fiscal policy tools can assist in improving economic growth‚ employment and mitigate inflation. Answer Fiscal policy is a policy concerned with Government Revenues and Government Expenditures. The tools are government expenditures (G)‚ taxes (T)‚ both direct and indirect‚ deficit financing‚ i.e.‚ government
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1.Measurement of national income: GDP and three methods of its calculation. GDP – is the value of output produces within the country over a 1-year period. 1. The first method of measuring GDP is to add up the value of all the goods and services produced in the country‚ industry by industry. In other words‚ we focus on firms and add up all their production. This first method is known as the product method. GVA over a year. Exclude taxes on products VAT‚ includes subsidies. (intermediate consumption)
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economy’s marginal propensity to consume is .75. By how much is output likely to expand if the economy is operating in the horizontal range of its aggregate supply curve and there are no complications to this fiscal policy? How does this discretionary fiscal policy differ from a discretionary increase in government spending of $40 billion? 5. Explain the effect of a discretionary increase in government spending of $50 billion on the economy when the economy’s marginal propensity to consume is .75.
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Table of content Explain the function of the choosen International Company..................................................p.3 The global business environment the company operates in. Consider the industry main......p.3 competitions‚ and the biggest challenge The organizational structure of the company..........................................................................p.4 The impact of culture of the chosen business activities around the world..............................p.5 The key
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Utility Analysis and the Consumption Function: An Rutgers University Press‚ New Brunswick (1954) Duesenberry‚ J.S.: Income‚ Saving and the Theory of Consumer Behaviour University Press‚ Princeton (1949) Haavelmo‚ T.: Methods of Measuring the Marginal Propensity to Consume Assoc.42‚ 105–122 (1947) 15 | P a g e
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Explain the concept of potential output and why actual output can differ from potential output? (2 marks) Potential output is the amount of output that an economy can produce when using its resources such as capital and labour‚ at normal rates. Potential output is not a fixed number but grows over time‚ reflecting increases in both the amounts of available capital and labour and their productivity. As capital and labour can be utilised at greater than normal rates‚ at least for a time‚
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Introduction to Managerial Economics Managerial economics (sometimes referred to as business economics) is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such‚ it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis and correlation‚ Lagrangian calculus (linear). If there is a unifying theme that runs through most of managerial economics it is the attempt
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Economic Environment Management PROJECT Impact of the “Right to work programme” in India SUBMITTED BY – Yash Jhaveri IIM Kozhikode Batch: EPGP04: Date of Submission: 27th January 2013 Contents INTRODUCTION : Right to Work In INDIA .......................................................................................... 3 What is NREGA / MGNREGA .............................................................................................................. 3 WHAT ARE THE GENERAL BENEFITS
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Department of Economics University of Toronto Prof. Gustavo Indart February 18‚ 2011 SOLUTIONS ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 3 LAST NAME FIRST NAME STUDENT NUMBER INSTRUCTIONS: 1. 2. 3. The total time for this test is 1 hour and 50 minutes. Aids allowed: a simple calculator. Write with pen instead of pencil. DO NOT WRITE IN THIS SPACE Part I 1. /10 2. /10 3. /15 4. /15 Part II /30 TOTAL /80 Page 1 of 12 PART I (50 marks) Instructions: Answer all four
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Unit-1 Q1. Define micro and macro economics‚ Distinguish between them‚ and explain the scope‚ importance and its limitations Ans. modern economy analysis has been divided into two major branches that is micro and macro economics. Micro economics means the economics system which deals individual economics unit on the other hand macro economics means the economics unit which deals aggregate as a whole that is national income‚ general employment‚ and total out –put‚ general price level etc. These two
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