Discuss 4 reasons‚ why using percentage change in Nominal GDP is an inadequate measure of Economic Growth? Nominal GDP (Gross Domestic Product) measures the total value of goods and services produced by an economy over a period of time‚ which is normally one annum‚ and is not adjusted. There are factors which means that the fact the Nominal GDP is not adjusted makes it an inadequate measure of economic growth. Economic growth is the increase in the amount of the goods and services produced by an economy over
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Reflection-Economic Forecasting ECO/372 June 3‚ 2013 Historical and forecast economic data can be obtained from various locations. The Internet grants access to several sites that provide tools for the individual to collect the data. One must choose which site provides the required information needed to support the facts. In the following paragraphs‚ team B has supplied various resources where historical and forecast economic data can be obtained and a summary explaining
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are the objects that people value and produce to satisfy wants. Goods are physical objects. Services are actions performed. What? – What we produce changes over time. How? – Goods and services get produced by using productive resources that economists call factors of production. Factors of production are grouped into four categories: - Land: The “gifts of nature” that we use to produce goods and services are called land. In economics‚ land is what in everyday language we call natural resources
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I. The Quantity Theory of Money This theory‚ developed by the classical economists over 100 years ago‚ related the amount of money in the economy to nominal income. Economist Irving Fisher is given credit for the development of this theory. It begins with an identity known as the equation of exchange: MV = PY Where M is the quantity of money‚ P is the price level‚ and Y is aggregate output (and aggregate income). V is velocity‚ which serves as the link between money and output. Velocity is the
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maximize profit? This question has been under debate since the 1940s and 1950s‚ when a wide number of mainstream neoclassical economists defended the assumption against a group of institutional economists that questioned the assumption as the norm in the industry. On the side of the neoclassical economists were Fritz Machlup and Milton Friedman‚ with institutional economists Richard A. Lester and Garnder C. Means opposing them. While the debate remains largely unsettled‚ the fact remains that in practically
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unemployment‚ inflation‚ say employers‚ economists Group: JBM1123u Group Members: Muhammad Asyraff bin Ab Hamid 2010357469 : Mohamad Lukman bin Abd. Manaf 2010114997 : Muhammad Faiz bin Mustafa 2010504183 Lecturer: Miss Diana binti Mazan Executive Summary Minimum wage policy will lead to surging unemployment‚ “black market” labour and inflationary pressure‚ employers and economists have warned. Datuk Seri Najib Razak
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Macroeconomists seek to understand the determinants of aggregate trends in an economy with particular focus on national income‚ unemployment‚ inflation‚ investment‚ and international trade. Milton Friedman and John Maynard Keynes‚ who was both great economists‚ embraced the different challenges of the world by imposing their own philosophies. Although both Friedman and Keynes have some similarities‚ strong disagreements about the monetary arena set them apart. These two gentlemen traveled different paths
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ECONOMIC GROWTH AND DEVELOPMENT Introduction Economies grow and develop‚ they expand and advance‚ and they progress and prosper. There are phases when they decline too‚ and there are economies that experience continuous decay. If one considers long stretches of human history‚ one knows that economies (civilizations) disappeared altogether. We will not take into account such long stretches of time. We shall not consider too distant a past either. We will leave them to historians‚ may be‚ economic
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January 25‚ 2012 Summary # 1 Summary “INTO THE UNKNOWN” “INTO THE UNKNOWN” published by the Economist is a magazine article about the fear that American workers have about future jobs and the replacing of jobs through outsourcing and computers. According to this article‚ white-collar workers around the world are losing their jobs as machines and foreign workers take over. The author’s purpose of this article is to alert the readers that although there are some changes in technology
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This belief of existence of full employment based on say’s Law. Say’s law given by French economist J.B.Say. According to say’s Law “ Supply creates its own Demand” This implies that every increase in production made possible by the increase in the productive capacity or the stock of fixed capital will be sold in the market and there will be no problem of lack of demand. Therefore‚ Classical economists rule out the possibility of over production‚ and there is no problem in selling the output
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