Part 2: Discussion on The Role of Consumer’s Confidence to an Economy Definition of Consumer Confident and Role of Consumer Confidence to Economy Consumers’ confident is important to the economy because consumers are the party whose make decision to purchase goods and services in the market. Consumer confident is an economic indicator which measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. Consumer confidence determines
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Cramer’s Rule Cramer’s rule is a method of solving a system of linear equations through the use of determinants. Matrices and Determinants To use Cramer’s Rule‚ some elementary knowledge of matrix algebra is required. An array of numbers‚ such as 6 5 a11 a12 A = 3 4 a21 a22 is called a matrix. This is a “2 by 2” matrix. However‚ a matrix can be of any size‚ defined by m rows and n columns (thus
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------------------------------------------------- Chapter 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand Multiple Choice 1. Shifts in the aggregate-demand curve can cause fluctuations in a. | neither the level of output nor the level of prices. | b. | the level of output‚ but not in the level of prices. | c. | the level of prices‚ but not in the level of output. | d. | the level of output and in the level of prices. | ANS: D PTS: 1 DIF: 1 REF: 21-0
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These linking factors determine the extent to which value created at one stage transfers or “multiplies” to the next stage. * The three stages of multipliers moderates transfer between the marketing program and the three value stages: the program quality multiplier‚ the marketplace condition multiplier and the investment sentiment multiplier. Step I) Marketing Program Investment Firm invests in a marketing program targeting actual or potential customers. This can be intentional or unintentional
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Assume consumption is represented by the following: C = 200 + .75Y. Also assume that planned investment (I) equals 300. (a) Given the information‚ calculate the equilibrium level of income. Y=AE=C+I=200 + .75Y+300 Y*=2000 (b) Calculate the multiplier Multiplier=1/ (1-MPC)=4 (c) Given the information‚ calculate the level of consumption and saving that occurs at the equilibrium level of income. C*=200+0.75*2000=1700 S*=Y*-C*=300 1 Review Questions for Chapter 23‚ BECO 101‚ Dr. Qiao Zhuo‚ FBA‚ University
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the country. The past government administration applied holiday economics to help boost tourism domestically. The current administration may choose to consider continuing the program. Keywords: Input-output analysis‚ tourism‚ linkages‚ impact multipliers INTRODUCTION The archipelagic nature of the Philippines‚ as well as its colonial heritage‚ offers a wealth of scenic views that invite both locals and foreigners to participate in tourism-related activities. According the Department of Tourism
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Chapter11: Money‚ Banking & the Financial Sector I. Money A. Money is defined as anything people accept for goods and services. In modern economies‚ money is national currency. B. In the absence of money‚ societies use a “barter” system in which goods are exchanged for goods. 1. Barter economies require a “Double Coincidence of Demand” in that the two market participants must each be supplying what the other demands. 2. Barter also implies negotiations over the exchange (a cost modern economies
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under examination is government consumption‚ which is assumed to be of the same size of the stimulus enacted in the US during the years 2009-2010. In case of no monetary accommodation‚ the models display multipliers between 0.7 and 1‚ by enacting the estimation for both US and Europe. The multipliers are very low because the increase in government demand boosts output‚ so the resulting
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Tax Cuts Economics How can tax cuts help revive the economy? Galo Guerrero DeVry University Content Introduction…………………………………………………………………………..page 2 Fiscal Policy…………………………....………………….………………………….page 2 Multiplier Effect……..………………….………………….…………………………page 3 Obstacles Reaching the Goals…………………………………………………….......page 3 Conclusion .……………………………………………………………………….......page 4 References……………………………………………………..………………….......page 5 How can tax cuts help revive the economy?
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Chapter 7 The Circular Flow Model Revisited Factors of production: · Land – rent · Labor – wages · Capital – interest · Entrepreneurship – profit The important principle: In any given time period‚ the value of output produced by an economy is equal to the total income that is generated in producing the output‚ which is equal to the expenditures made to purchase that output Value of output produced = total income generated = expenditure made to purchase Leakages
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