1.3 Micro & Macro Economics for Business Decisions Syllabus of the chapter: (B) Macro Economics (1)Fiscal Policy: Basic Economics Indices (National Income‚ National Production‚ National Employment‚ General prices level). Aggregate Demand (Consumptions‚ Government Expenditure & Business investment). Aggregate Supply. Determination of Income (or production). Taxation & Fiscal policy. A Note for MFA (I semester) Students:-The words underlined above are the portions completed till date in the
Premium Macroeconomics Economics Tax
Reagan’s fiscal policies Many believe that Ronald Reagan is one of the best conservative presidents in United States history. Reagan (February 6‚ 1911-June 5‚ 2004) was the 40th president of the United States from 1981-1989. He originally was a member of the Democratic Party‚ but due to the parties’ shifting platforms during the 1950’s‚ switched to the Republican Party in 1962. Out of the many things Reagan was famous for‚ he was notorious for his implementation of supply-side fiscal policy. Ronald
Premium Ronald Reagan President of the United States Democratic Party
Gross Domestic Product (GDP) Used to Measure the Business Cycle Gross Domestic Product (GDP) is used quarterly as an indicator of economic activity to measure the business cycle. A business cycle is when there are periods of economic growth and periods of economic decline. A business cycle consists of four stages‚ contraction‚ recession‚ expansion‚ and peak. Contraction is when the economy starts to slow down. When a contraction begins to occur the Federal Reserve will lower interest
Premium Monetary policy Macroeconomics
Evaluate the effects of ‘tighter monetary and fiscal policy’ on any two-macreconomic objectives Monetary Policy involves changes in the base rate of interest to influence the rate of growth of aggregate demand‚ the money supply and ultimately price inflation. Fiscal policy involves the use of government spending taxation and borrowing to influence the pattern of economic growth and to affect the level of aggregate demand‚ real output and employment. The four major objectives are full employment
Premium Inflation Tax Macroeconomics
needed inputs. It also depends on the economic environment to sell the finished goods. Naturally‚ the dependence of business on the economic environment is total and is not surprising because‚ as it is rightly said‚ business is one unit of the total economy. Economic environment influences the business to a great extent. It refers to all those economic factors which affect the functioning of a business unit. Dependence of business on economic environment is total — i.e. for input and also to sell the
Premium Economics Monetary policy Macroeconomics
to spend the full amount of its full stimulus in 2010 despite the fact that government has ordered banks to control lending and implemented monetary policy to prevent over investment earlier. Introduction Since the financial tsunami and the bankruptcy of Lehman’s Brother in September 2008‚ the world’s economy took a deep plunge and the Chinese economy is no exception. In the wake of the global financial crisis‚ The Economist (2008) reported that China’s real GDP growth slowed to 9 percent in the
Premium Monetary policy
The Monetary and Fiscal Policies‚ although controlled by two different organizations‚ are the ways that our economy is kept under control. Fiscal Policy is defined as the use of government spending and revenue collection to influence the economy. Monetary policy however is the regulation of the money supply and interest rates by a central bank‚ such as the Federal Reserve Board in the U.S.‚ in order to control inflation and stabilize currency. Although these two policies are meant to help stabilize
Free Monetary policy Federal Reserve System Central bank
Fiscal Policy Learning Team C Fiscal Policy The United States impacts various policies not only at home but abroad. It has been a powerhouse for many years‚ and its strengths and weaknesses impact other countries. The deficit‚ surplus‚ and debt are three major areas influencing these policies. These three factors have a huge impact on many areas we will discuss. These include taxpayers‚ the future of Social Security and Medicare users‚ the unemployed‚ a University of Phoenix student‚ the
Premium
Fiscal Policy vs. Monetary Policy With America in recovery from the attacks on our freedom and our economy‚ many wonder if we will return to phase one (expansion) and how long it will take to reach phase two (recession) again. The Keynesian Theorists of America believe that the government should actively pursue Monetary policies (enacted by the Federal Reserve Bank) and Fiscal policies (enacted by Congress) to reach adjustments to price‚ employment‚ and growth levels. In our full market economy
Premium
Research Question: How appropriate is the recently announced fiscal policy in terms of the state of the economy since 2007‚ the outcomes of ASGISA and the economic growth path envisaged by government? In measuring the appropriateness of the South African fiscal policy stipulated in the general budget for the 2011/2012 period‚ one must look not only at South Africa’s current economic position but rather the state of the economy over the last five years as well as the context of the ASGISA outcomes
Premium Macroeconomics Monetary policy FIFA World Cup