...The current macroeconomic situation in the U.S. right now is troublesome to many. The U.S. recently came out of a recession which many are arguing could have been a lot worse without government intervention, and we could be facing a double dip recession where we might be heading into a worse recession than we experienced during the last one. This is a macroeconomic problem since it is the entire economy that was affected. “As fears over recession mount, house prices slide, unemployment rises and millions fret over the cost of their mortgage (Besley, 2008).” The U.S. has been trying to overcome unemployment, and inflation, while fighting to stay out of another recession. In order to combat these government, and the Federal Reserve or the “feds” for short have different tools and policies to try and beat inflation, and recession. The “feds” get together every six weeks in a private meeting, and determine what to do with the economy. They try and keep a balance as to not have too much inflation, but also not head into a recession. Usually Congress is good at keeping the recession in check while the “feds” worry about inflation. The tools for fiscal policy are raising taxes, lowering taxes, and on whom. They can increase spending on the military, infrastructure, or decrease spending such as on public services or military bases. Another set of tools is on monetary policy such as reserve requirements, discount rates, open market operations, and printing money. The government...
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...ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 To purchase this tutorial visit here: http://mindsblow.us/question_des/ALLASSIGNMENTSWEEK3PLUSWEEK6/1887 contact us at: help@mindblows.us ECON 312 ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 To purchase this tutorial visit here: http://mindsblow.us/question_des/ALLASSIGNMENTSWEEK3PLUSWEEK6/1887 contact us at: help@mindblows.us ECON 312 ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 To purchase this tutorial visit here: http://mindsblow.us/question_des/ALLASSIGNMENTSWEEK3PLUSWEEK6/1887 contact us at: help@mindblows.us ECON 312 ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 To purchase this tutorial visit here: http://mindsblow.us/question_des/ALLASSIGNMENTSWEEK3PLUSWEEK6/1887 contact us at: help@mindblows.us ECON 312 ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 To purchase this tutorial visit here: http://mindsblow...
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... April 14, 2010 Week 6 Assignment Introduction The current macroeconomic situation has been an issue of many talks in the United States and worldwide. Everyone is trying to change the situation, but no definite answer has been found. 1] What is the “current macroeconomic situation” (e.g worrying about inflation and/or recession) in the U.S.? The macroeconomic situation in the United States is not stable due to the financial instability, especially in the macroeconomic arena, because imports and exports are really down. The case for macroeconomic policy stimulus has been stronger in the United States than in Europe or Japan and both US monetary and fiscal policy have already acted forcefully. Going forward, the scope for policy support to decelerating activity depends on inflation developments. Soaring oil, food and other commodity prices have led to a sustained pickup in headline inflation rates and increases in producer price inflation suggest further impending cost pressures. In these circumstances, a ratcheting up of inflation expectations remains a potent threat. Another contributing factor is the devaluation of the dollar and other currency, such as the Euro or yen. Inflation has eroded the prices of commodities and goods, and the threat of possible recession has also contributed to the problem. This can be avoided by issuing anti inflationary measure to protect further damage in the macroeconomic world. 2] What...
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...Current Macroeconomic Situation, Fiscal and Monetary Policies Current Macroeconomic Situation, Fiscal and Monetary Policies Introduction As the leading world economy, the United States and has been in a recession since 2008 and the leading outcome of this recession has been no other than unemployment. The newsflash among media and television about this recession has resulted in unemployment, and how to remedy this “current macroeconomic situation”. No one seems to have an immediate solution on how the economy will get better. The news and media do a lot of finger pointing and giving various unpleasant names to the situation such as calling it “the decade of depression”. Our inflation rate is about 2.3%, which is currently lower than the past rate that was 3.4%. As of July 2012, unemployment rate has been around 9.3%, compared to the prior average years back of about 5.6%. Research We all know that if there is unemployment, consumers do not spend as much money and businesses suffer, from that but honestly speaking, not many of us know what these unemployment figures mean or represent for sure. We can assume or estimating what it means without understanding since we were not aware of what it was before or one is not personally affected by the unemployment saga. So it gets to be a bit mind-boggling when some industries throw these percentages out there and expect us all to know what they mean and as a way to get...
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...Economic Situation. Current Macroeconomic Situation. Ibrahim Vohra 12/1/2010 Lotti_Charming@hotmail.com Current Macroeconomic situation. Introduction. As far as I know, recession is what's on everyone's mind and what probably should be on Mr. Bernanke's mind. Inflation has been pretty high though (e.g. the price of commodities) but the tools available to them to fight recession and inflation are usu. contrary to each other, so inflation should take a back seat for now. Of course we could be in for stagflation in the near future. A stable recovery. The general concern (shrinking, but still present) is that the U.S. economy could sink into another recession creating a double bottom recovery pattern (as opposed to a V shaped recovery)(Spencer 2009). The U.S. Congress has done a good job at not spooking the markets. If the markets believed that the Fed would be raising the interest rates, the economy could slip into another recession. Ben Bernanke has promised to keep interest rates "exceptionally low for an extended period of time." As we move past the point where recession is a concern, inflation and security bubbles become the next concern. We know the Fed is going to raise rates, but when and by how much? No one’s knows that at all.(Spencer 2009) The Main macroeconomics theory...
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...What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? The information that’s being reported on the news by the news, web, and paper states the U.S. economy is current conditions greatly concerned about unemployment, which is due to the present recession. The current macroeconomic situation is instilling fear in many, because of the unstable and uncertainties of how we’ll recover and things remission from such state of being. The grime view and predictions the media is reporting it as the “decade’s depression”. Unemployment Rate in the United States decreased to 7.40 percent in July of 2013 from 7.60 percent in June of 2013. Unemployment Rate in the United States is reported by the Bureau of Labor Statistics. The United States Unemployment Rate averaged 5.82 Percent from 1948 until 2013, reaching an all-time high of 10.80 Percent in December of 1982 and a record low of 2.50 Percent in May of 1953. To be frank, there many people that do not understand these figures; and most will be assuming or estimating what it could possible mean for them without a real reason. According, to the Trading Economics, “The Gross Domestic Product (GDP) in the United States expanded 1.70 percent in the second quarter of 2013 over the previous quarter. GDP Growth Rate in the United States is reported by the Bureau...
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...Fundamentals of Macroeconomics Curtis L Wilson III ECO/372 October 29, 2012 Joe Timmerman Fundamentals of Macroeconomics There are many fundamentals of Macroeconomics that are extremely important to the U.S. economy. In this paper I will explain the Gross domestic product (GDP), the Real GDP, the Nominal GDP, the Unemployment rate, Inflation rate, as well as the interest rate. Going forward I also will explain the following economic activities; purchasing of groceries, massive layoff of employees, decrease in taxes and how these activities affect the government, households and businesses. I also will describe the flow of resources from one entity to another for each of these activities. The Gross domestic product is basically the current market value of all goods and services that were produced within a country. The Real GDP is the gross domestic product that has been adjusted for the impact of inflation. The Nominal GDP is considered the GDP evaluated at current market prices. It includes all the changes in market prices due to inflation or deflation in the current year. The Unemployment rate is the percentage of the total workforce who is currently unemployed and is looking for an income paying job. The Unemployment rate is heavily analyzed because a rising rate is a sure sign of a struggling economy, which will call for a cut in the interest rate. If the unemployment rate were to fall that would indicated a rise in the economy followed by higher inflation...
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...EC 301 Intermediate economics | The American Economy | Keynesian and Monetary Theories, Budget Deficits, Trade Deficits, and Supply-side Economics | | Nathan Johnson | 5/5/2013 | | The past twenty years has seen a great shift in economics of this country. In the early 1990’s the U.S. economy was struggling and was a major topic of the previous presidential election. Fast forward twenty years and an economic boom and bust later, the presidential election again was based on a struggling economy. By taking a closer look at the policies and practices that took place in that span we might be able to find a better understanding of how our government can influence our economy. In the field of economics there are several varying sets of ideals of how policies should be implemented. Two of those groups are the Keynesian theorists and the monetary theorists. These two groups offer different perspectives of what is “right” in the world of economics. Each option provides its positives and negatives, but it is up to each economist to determine which negatives are worth giving up. The Keynesian theorists believe in correcting economic downturns with fiscal policy actions. Actions that would please Keynesian theorists would include changes in government spending, changes in the amount of taxes, and changes made to investments in long term productive growth. During the most recent fiscal crisis, these theorists were happy with the stimulus package that was created by the...
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...The Current Macroeconomic Situation in the United States Name: Institution: Abstract The policy makers in every economy play an imperative role in regulating the macroeconomic activities with the intention of maintaining the economic stability. In essence, economic stability is vital for improving the social welfare of citizens, as well as the economic growth. The current United States economic outlook is not good. The average American is not doing well though there has been an improvement in market performance. The 2009 financial crisis continues to affect the United States economy. High unemployment level is the major economic issues that the country is still experiencing. The unemployment rate is still high although there has been a small improvement in job creation. As a result of unemployment, the consumer confidence as well as business sentiment continues suffering. At present, inflation is not a critical threat to the United States. The Gross Domestic Product is flat. In fact, the growth of real GDP has been excessively slow. The monetary and fiscal policies can help the policy makers in solving the present unemployment problem facing the country. In particular, the policymakers ought to consider implementing both expansionary monetary and fiscal policies since the current level of unemployment is essentially cyclical. With regards to the expansionary fiscal policy, the policy makers should implement it through taxation...
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...edu. ii Contents 1 Global Imbalances 1.1 Balance-of-Payments Accounting . . . . . . . . . . . . . . . . 1.2 The Current Account . . . . . . . . . . . . . . . . . . . . . . 1 1 5 1.3 The Current Account and the Net International Investment Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.4 Valuation Changes and the Net International Investment Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1.5 The Negative-NIIP-Positive-NII Paradox: Dark Matter? 1.5.1 1.5.2 . . 20 Dark Matter . . . . . . . . . . . . . . . . . . . . . . . 22 Return Differentials . . . . . . . . . . . . . . . . . . . 23 1.6 Who Lends and Who Borrows Around the World? . . . . . . 26 1.7 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 35 2 Current Account Sustainability 2.1 Can a Country Run a Perpetual Trade Balance Deficit? . . . 35 2.2 Can a Country Run a Perpetual Current Account Deficit? . 39 2.3 Savings, Investment, and the Current Account . . . . . . . . 41 iii iv 2.3.1 CONTENTS Current Account Deficits As Declines in the Net International Investment Position . . . . . . . . . . . . . 2.3.2 2.3.3 41 Current Account Deficits As Reflections of Trade Deficits 42 The Current Account As The Gap Between Savings and Investment . . . . . . . . . . . . . . . . . . . . . . 42 2.3.4 The Current Account As the Gap Between National Income and Domestic Absorption . . . . . . . . . . . . 44 2.4...
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...School of Business ------------------------------------------------- Syllabus ECO/372 Version 4 Principles of Macroeconomics Whenever there is any question including about what assignments are due, please remember this syllabus is considered the ruling document. Group Number: GA11BSB08 Course Start Date: 07/17/2012 Course End Date: 08/14/20112 Course Schedule: Workshop 1 – July 17, 2012 Workshop 2 – July 24, 2012 Workshop 3 – July 31, 2012 Workshop 4 – Aug. 7, 2012 Workshop 5 – Aug. 14, 2012 FACILITATOR: Farooq A. Khan COURSE LOCATION, DAY AND TIME: Gardena Learning Center, Tuesday @ 6PM REQUIRED READING: Students are required to read all materials available at the Course Materials site for this course on https://ecampus.phoenix.edu/portal/portal/public/login.aspx | Course Syllabus School of Business ECO/372 Version 4 Principles of Macroeconomics | Copyright © 2012, 2008, 2007, 2006 by University of Phoenix. All rights reserved. Course Description This course provides students with the basic theories, concepts, terminology, and uses of macroeconomics. Students learn practical applications for macroeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies:...
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...Current Macroeconomic Situation in US and Prospects for Automotive Sector The U.S. automobile industry is large and dynamic sector contributing significantly to the nation’s output and employment. Auto industry provides the basis for a mass of related service and support industries. The industry is highly volatile and sensitive to global and domestic economic changes. During the 1960’s & 1970’s the big three accounted for 90% of automobiles purchased in U.S. However, since 1980’s foreign manufacturers entered the U.S market. So, the industry faced intensive competition from Japan, Germany & other countries. During 1998’s availability of foreign substitutes flooded the U.S automotive industry. Foreign producers, particularly Japanese, provided solitary competition to The U.S. oligopoly. Besides, the demand for automotives are highly found to be fickle and sensitive to macroeconomic conditions like, income, unemployment, interest rate etc. Regarding cost of production, The U.S automotive firms are characterized by huge fixed and variable costs. The variable cost in terms of wages and other benefits are, because most of the automobile firms like GM, Ford, and Chrysler have long been unionized. The United Auto Workers (UAW) ensures higher wages and generous benefits in the form of health insurance and Medicare for automotive industry workers than in any other non unionized firm. Eventually, UAW contracts with the auto firms lead to mounting variable and fixed cost...
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...and Finance Speech ECO/372 International Trade and Finance Speech Macroeconomics consists of the large scale economic factors such as interest rates and national productivity. International trade, finance and exchange rates are a large part of this study. Today, we will dive into the basic definitions and descriptions of simple terms and concepts as they relate to macroeconomics. “The trade balance is the difference between a country’s exports and imports” (Colander, 2010). When a country is exporting more than they are importing a surplus is created, so there is more production than consumption. The opposite is true for a trade deficit. A country that imports more than it exports is running in a deficit; consumption is more than production. An example of a product in the United States with a surplus is oil. Seven years ago the U.S. imported about two-thirds of their oil consumption. By 2014 it is expected that the U.S. will only import 6 billion barrels of crude oil per day; this is about one-third of what the country uses and by 2020 U.S. oil production will exceed Saudi Arabia’s (Phillips, 2010). The problem is that the oil produced in the U.S. is high-quality crude and the oil imported is heavy, sour oil. Since the refineries are currently equipped to refine the heavier oil the U.S. has a surplus of the high-quality crude. One would expect lower oil prices with the surplus, but as the current gas prices reflect this is not the case. While the process and the politics...
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...The U.S. Economy Today Content Introduction…………………………………………………………………………Page 2 Data Trends………………………………………………………………………….Page 2 Fiscal & Monetary Policies….…..…………………………………….…………………………………Page 2 &3 Conclusion…………………………………………………………………………..Page 3 References…………………………………………………………………………..Page 3 Introduction We will take a look at today’s economy in the 2014. Discuss current trends such unemployment, inflation and the GDP. How do fluctuations in these trends affect the U.S. economy? What fiscal & monetary policies should be used to assist or improve our current economic situation? Lastly, what phase is our economy in today a depression, recession or expansion phase? Data Trends According to the Bureau of Labor Statistics (BLS) our current unemployment rate as of September 2014 is 5.9%, which is showing a slow steady decrease over this last year. The current GDP is 4.6%, which is showing a increase from the first quarter that was at -2.1%. The current inflation rate is at 1.7%, which has fluctuated from 1.6% in January, then had an increase in June up to 2.1%. All these factors play a role in the economical well being. For Example if the unemployment rate continues to decline and the economy reaches full employment. This will promote consumers to purchase more goods and services, because their disposable income will increase. The aggregate supply and demand will both increase, which in turn will increase the GDP. Unemployment or employment...
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...ECON 515 MACROECONOMIC POLICY FALL 2012 Monday & Wednesday 8:00AM-9:30AM 9:50PM-11:20PM 1:10PM-2:40PM Rawls 3082 INSTRUCTOR: DR. GERALD J. LYNCH Office: Rawls 4039 Phone 494-4388 lynch@purdue.edu Secretary: Sherry Fisher 496-7227 Office Hours: Monday and Wednesday 3:00-4:00 and by appointment Introduction to the topic: As recent turmoil in the financial markets has demonstrated, macroeconomic fluctuations in the economy can create a difficult operating environment for the firm. This situation is further complicated by the fact that it is an environment over which the firm has little control. Even though the firm cannot control the environment, it can still react to economic conditions in ways that minimize its uncertainty as long as it understands the constraints it is facing. The purpose of this course is to help in an understanding of the macroeconomy. Macroeconomics is that branch of economics that seeks to understand and explain changes in output, general prices, employment, interest rates, foreign exchange rates, the balance of payments, and other related phenomena. Emphasis is given in this course to analyzing financial markets where interest rates are determined. We will spend more time than usual on the financial markets this year in response to the uncertainty in that environment today. Also, since the macroeconomic environment in this country is increasingly influenced by international conditions, the factors underlying trade and exchange...
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