...businesses from cutting expenses as much as they would during a recession. Therefore, an increased federal budget deficit can help stabilize an economy for as households’ disposable income rises they will spend more. Fortunately, mechanisms such as automatic stabilizers are in place to neutralize the ups and downs of the economy without having to change laws (O’Sullivan, Sheffrin & Perez 2010, p. 375). How do adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium? During the short-run, prices and wages do not respond to changes in the economy, short run equilibrium identifies the real Gross Domestic Product that the economy will produce when wages and prices are at a stand still (O’Sullivan, Sheffrin & Perez 2010, p. 358). When the economy is in the long run, is reached...
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...Term Project ON Euro Crisis: Origin, consequences and impact on world and Indian economy Submitted By: Ajay Sharma 2011SMF6623 Nitesh Goyal 2011SMF66 Sajal Agarwal 2011SMF66 Contents Description | Page No. | | | | | | | | | | | | | | | | | | | | | | | Impact on India | | Impact of FDI in India | | Snapshot of impact on India | | Conclusion | | References | | Impact on India Though India is primarily a domestic economy, India’s exports are positively linked to the global economic growth. This is likely to adversely impact India’s export growth in the coming months. However, growth will be only marginally affected by the slowdown in the euro region debt stricken countries as our exposure is low. Software services and other export oriented sectors would benefit from the rupee depreciation. FDI has not been significantly affected by the crisis while the FIIs are showing outflow in the last couple of months. International commodity price moderation is not being translated in domestic prices. Inflationary Concerns: Further, exchange rate depreciation would worsen the inflationary conditions in the economy. Therefore, the RBI would have to continue with its anti-inflationary stance in the near term if domestic conditions do not improve Source: World Bank, Ministry of Commerce, Government of India Interpretation of Graph - Graph 1 show that the share of the euro zone exports...
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...SECTION A: MULTIPLE CHOICE QUESTIONS (35%) Answer ALL questions in this section. Choose the one alternative that best completes the statement or answers the question. Please answer questions by shading the appropriate box on the MCQ form (Multiple Choice answer sheet). 1) hich of the following is not a consequence of hyperinflation? W A) he price level grows in excess of hundreds of percentage points T per year. B) oneyʹs function as a medium of exchange is enhanced. M C) t causes an economy to suffer slow growth. I D) oney loses value so rapidly that firms and individuals stop M holding it. 2) hich of the following would you expect to lead to increases in W domestic interest rates and an appreciation of the domestic currency? A) xpansionary monetary policy e c B) ontractionary monetary policy C) xpansionary fiscal policy e D) oth B and C. B 3) eteris paribus, an unexpected increase in the current or actual rate of C inflation will cause A) he long run Phillips curve to shift leftward. t B) he short run Phillips curve to shift upward. t C) he unemployment rate to decrease (a movement along the short t run Phillips curve). D) xpectations of future inflation rates to be revised downward. e 4) he interest rate on a Treasury bill that you pay $980 for today that T matures in one year and pays $1,000 is A) percent. 2 B) percent. 4 C) percent. 3 D) percent. 1 5) he international trade effect states that ...
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...Term Definition Paper Gross domestic Product GDP is a measure of a country’s economic output. It is the market value of all final goods and services made in the borders of a country within a year. It is often positively correlated with the standard of living, alternative of measures to gross domestic product for that purpose. (Colander, 2008). There are four parts to Gross Domestic Product: consumption, investment, government spending and net exports. Consumption is people spending money on goods or services, investment is different than normal investing it doesn’t mean investing in stocks or bonds; it actually means that businesses are spending money on factories and equipment for production. Government spending is money the government spends on goods and services. Net exports are when foreigner spends money on goods and services that are made in the United States. What does real gross domestic product GDP mean? The market value of final goods and services produced in an economy stated in the prices of a given year, also nominal GDP adjusted for inflation. (Colander, 2008). Unlike nominal GDP, real GDP can account for changes in the price level, and provide a more accurate figure. Inflation is a continual rise in the price level. Often referred to as a “constant-price”, inflation-corrected GDP or constant dollar GDP. (Colander, 2008) Inflation is the change of price levels over time. There are many cause for inflation, one example is when the government prints...
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...Gee Case Memo 3: The Greek default is not a current issue, as it has been in the making Summary: In the wake of events that followed the Global Financial Crisis, the EU was facing its toughest time since its inception, and a major catalyst to these problems was Greece. There were major speculations about a possible default on behalf of Greece, which would create a domino effect and take down a number EU members along with it and the EU could in no way let that happen. But Greece’s problems were not current. A series of events that had been occurring ever since the 1980’s eventually lead to the position Greece is in today and major bailout plan was needed, immediately. Economic events that lead to Greece’s current state: Beginning in the 1980’s, the situation of Greece had already started deteriorating, economically. Many of these occurring’s are what can be attributed to, as being one of the few primary reasons for the current state of Greece. * With the trade balance increasing from -6.7% between the years 1975-79 to -7.9% in 1985-89 and finally touching -10% in 1990-94 and then averaging to -9.5% from 2001 through 2009, things had already started looking bleak for Greece. (Exhibit 4) * In addition to that, the Real GDP growth reduced from 8.5% in 1960-69 to -0.2% in 1980-84 and then averaging to a 2.45 % up till 2009, never to touch its golden ear of the 1960’s * Between the 1980’s and 1990’s the public debt as a percent of GDP almost tripled from a 28%...
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...THE EAST ASIAN CRISIS Introduction: The East Asian crisis was a period of financial crisis that gripped much of Asia which beginning in July 1997 and raised fears of worldwide economic meltdown due to financial contagion.1 Several countries such as Malaysia, Thailand, Indonesia, the republic of Korea and the Philippines were hit directly while others such as Taiwan province of China, Singapore and especially Hong Kong, China were badly affected. What began as a speculative attack on the Thai baht in July 1997 quickly spread as ‘contagion’ to the other countries. Over a three-month period between July and October 1997, the baht fell nearly 40 per cent, the Malaysian ringgit and Philippine peso by about 27 per cent, the Indonesian rupiah by about 40 per cent and the Korean won approximately 35 per cent against the United States dollar. For countries that had been dubbed “miracle economies” this was a serious blow with wide-ranging economic, social and political ramifications.2 In this paper we would try to undertake an empirical analysis of the factors leading to the crisis by analysing on two major points: 1) How have these countries performed in the years leading to the crisis? 2) What was the policy response to the currency crisis and what similarities/differences were there in policy responses across countries? We try to do this by analysing the macroeconomic data of three countries, Malaysia, Thailand and the Republic of Korea, over a 13-year period, from 1990 to 2002. The...
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...DOES ECONOMIC GROWTH MAKE PEOPLE HAPPY Theoretically economic growth is an increasing the economy of a country, an area to satisfy the wants of the members of society, and enable to produce goods and services, which use lower of inputs (capital, labour, raw material, etc) for a given amount of output, to compare from one period of time to another. Economic Growth is a growth in a level of National Income and Gross Domestic Product, which is abbreviated as GDP, is a measuring stick for Economic Growth. In effect of every aspect of economics such as agriculture, manufacturing, structure, energy, services and government department, if GDP decreases then the Economy is shrinking, that means job cutting, falling price, and etc. Behind, if GDP increases therefore the economy is expanding better and more new jobs for civilisation. GDP per capita (GpC) is often considered an indicator of a country’s standard living and is measured in term of dollars. Economic Growth is generally speaking higher incomes mean higher living standards. However, the question is that “does economic growth make people happy?” and we are going to discover to see does everybody be happy when economic growth. First of all, could you distinguish between happy and satisfy and do they always go together? Happy is defined as both a state of mind and an emotion, and “satisfy” on the other hand is the state wherein your desires are met. On the table1 shows that at average of GDP, GpC ($7972.3) and Population the...
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...MAPPING BOROPLUS AGAINST VASELINE IN GLOBAL MARKET SUMMER INTERNSHIP REPORT 2012 INTERNSHIP REPORT AT EMAMI LTD. KOLKATA UNDER GUIDANCE OF MR. BRAJESH KUMAR PREPARED BY: SHAUNAK MILIND SARDESSAI PGPM 20110335 21ST SEPTEMBER 2012 1 ACKNOWLEDGEMENT It has been rightly said that we are built on the shoulders of others but the satisfaction that accompanies the successful completion of any project would be incomplete without the mention of the people who made it possible. I would first of all like to thank Emami Limited for giving me this opportunity to learn, share my ideas, views, and thoughts on various subjects through this project, undertaken as a part of curriculum requirements. I am highly indebted to my project guide Mr. Brajesh Kumar – General Manager Marketing (SAARC, SEA & EUROPE), for giving me an opportunity to work with him. Without his adroit guidance, constant support and inspiration this project would have not been possible. The value addition that I derived under his guidance by means of various side activities such as sharing learning’s by presentations, facilitating surveys etc. has culminated in a life-long valuable experience. I would like to acknowledge the contribution of Mr. Devanshu Seth, International Brand Manager, for his valuable inputs in completing the project. The ideas shared by Mr. Mridul Greenwold, Asst. Brand Manager, have also helped me tremendously in driving my project through its journey. I would also like to express my gratitude...
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...Current Macroeconomic Conditions Evaluating current macroeconomic indicators are essential for managers to monitor on an ongoing economic environmental scan of their organizations. There are many indicators and depending on the industry some are better than others. The primary measure of the economy’s performance is its annual total output of goods and services known as its aggregate output (McConnell, 2009). Gross domestic product (GDP) defines aggregate output as the monetary values of all final goods and services that are produced within the borders of a given country during a specified time frame which is usually a year (McConnell, 2009). To measure this accurately, all of the goods and services produced during the year of measure must be counted only once. This takes into consideration those products that go through a series of production stages before they actually reach the market for sale. One must realize that some of these components are bought and sold many times before becoming a part of the final good(s). GDP includes only the market value of final goods and ignores intermediate goods which are those goods and services that are purchased for resale or for further processing. Final goods references the consumption goods, capital goods, and services that are purchased by their final users. GDP was never meant to be the measure of our well-being but a measure of our production. Literally, the total value of the goods and services produced within the national...
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...ROLL- No 57 [COUNTRIES JAPAN & Hong Kong] GDP The gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and output for a given country's economy. GDP can be defined in three ways, all of which are conceptually identical. First, it is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time (usually a 365-day year). Second, it is equal to the sum of the value added at every stage of production (the intermediate stages) by all the industries within a country, plus taxes less subsidies on products, in the period. Third, it is equal to the sum of the income generated by production in the country in the period—that is, compensation of employees, taxes on production and imports less subsidies, and gross operating surplus (or profits) .Japan GDP Analysis The Gross Domestic Product (GDP) in Japan was worth 5867.15 billion US dollars in 2011, according to a report published by the World Bank. The GDP value of Japan is roughly equivalent to 9.46 percent of the world economy. Historically, from 1960 until 2011, Japan GDP averaged 2335.35 Billion USD reaching an all time high of 5867.15 Billion USD in December of 2011 and a record low of 44.31 Billion USD in December of 1960. The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods...
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...Term Paper .Economics is used in almost all aspects of life. It is about the choices and decisions we make. An understanding of economics will show how to live and exist in the world today and help us understand how the business world works. As the concept of economics is discussed, many terms are used to describe how economics works in the world. There terms will be defined so that they are better understood throughout the discussion of the economy and market demand. The terms Gross Domestic Product (GDP), Real Gross Domestic Product, Nominal Gross Domestic Product, Unemployment rate, Inflation rate, and Interest rate, help to break down the analysis of economics and give a better understanding of the direction our economy is headed. Part One: Terms and Definitions Gross domestic Product (GDP) is the market value of all recognized final goods and service produced within a country. It is measured by household consumption spending, business investment spending, and government purchases to equal net exports. It is important to the economy because it shows the growing economical rates. Real GDP is an adjustment for inflation. It is based on the prices of a good or service in a year with inflation or deflation accountability. It accounts for changes in the pricing level and then provides a more accurate figure. Economist rely on this to get a constant pricing. Nominal GDP does not adjust for inflation. It is based on the prices of goods or services in a year without inflation...
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...ECO/372 Principles of Macroeconomics Individual: Fundamentals of Macroeconomics Paper Part 1 Gross Domestic Product (GDP): Market value of all goods that are produced in a given time period. Real GDP: The measurement of GDP at constant prices. Nominal GDP: The measurement of GDP at current prices. Unemployment Rate: The measurement of knowing how many people are unemployed in the country versus employed people. Inflation Rate: The measurement of increase in prices over a period of time. Interest Rate: The dollar amount that is paid yearly on a loan by the borrower. Part 2 The three activities affect each entity different, looking at how purchasing groceries would affect the government only if there was some sort of inflation going on. Then the government would raise taxes on goods in which will raise the prices of goods. As for households it can affect them in a negative way or a positive way. If we look at buying groceries in today’s economy it rather difficult because the price of goods are going up, but wages are staying the same. So, when it comes to a household of maybe 6 or 7 it would difficult to feed them because the take home pay is so low. The business aspect of buying groceries, the business will always succeed because people need and have to eat. So, if the economy is bad the grocery industry will not see a decline because people have to eat. Even when wages are low and the prices of goods are high people still have to buy groceries to survive. Massive...
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...Deloitte International Tax and Business Guides, provides information on Denmark regarding the investment climate, operating conditions and its tax system. If a company’s objective is to expand internationally, and is properly structured, a Denmark holding company can act as a legally tax-exempt conduit for dividends received from subsidiaries around the world (1). A Denmark holding company is legally exempt from dividends tax received from a foreign subsidiary (1). Denmark levies no withholding tax on dividends paid to the foreign parent. Additionally, a holding company is not required to pay capital gains tax on shares held for more than three years (1). A Denmark company has access to a network of double taxation treaties Denmark has signed with major trading nations around the world. A minimum of one shareholder and one director is required for Denmark company formation. The shareholder and director can be the same person, and need not be resident in Denmark (1). Denmark’s ranked as the world's 11th freest economy in the Heritage Foundation's 2012 Index of Economic Freedom, which measures freedom as it relates in business, trade, monetary, financial, investment and labor markets (Appendix 3). Denmark’s GDP per capita (PPP) for 2011 was estimated at $40,200 USD. Denmark's fiscal position remains among the strongest in the EU at 46.5% of GDP in 2011 (Appendix 4). In its 2012 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks...
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...Group Assignment – Macro-Economics | Assignment Cover Sheet Details | Name(s) | Saumil PabariSurbhi SardanaSonali Rawal | Roll No.(s) | GDEC12IBWM062GDEC12IBWM065GDEC12CMM30 | Email Address(s) | saumil.gdec12@spjain.orgsurbhi.gdec12@spjain.org sonali.gdec12@spjain.org | Course | MacroEconomics | Faculty | Prof. Dave Barrows | Assignment | Group Assignment | Due Date | 26 March 2013 | Date Submitted | 26 March 2013 | Submitted by | Surbhi Sardana | | | Executive Summary Brazil is the 5th largest country in the world, with an area of 8.515 km2, and a population of over 200 million. Brazil is a country with large natural resources and a large labor pool. It has managed to exploit these to become South America's leading economic power and regional leader, and one of the first in the area to begin an economic recovery. Highly unequal income distribution and crime remain pressing problems. Over 25% of population is still below the poverty limit. Brazil has its work cut out for itself where it has to be all set to host both the 2014 World Soccer Cup and the 2016 Olympic Games (Focus2move website). We begin this report by providing a summary of the economic activities taking place in Brazil that are likely to affect the future. Then, the report is divided into three parts; the first highlighting the macro-economic factors that will help forecast the future demand for passenger automobiles in the local market, the second highlighting the macro-economic factors...
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...1Developed Economy Developed economy is an economy enjoying sustained economic growth and security. Some of the common characteristics of a developed economy are low birth rate and higher life expectancy, high level of literacy and a well trained workforce and the export of high value added goods. High gross domestic product is also a common measure of a developed economy. (Business dictionary 2011) However a developed economy is an economy that has a high level of economic development in a classified state, according to some criteria. Countries classified We could also argue that in times of low unemployment, workers have more power to demand higher wages because they know they cannot be easily replaced. Conversely, during high unemployment businesses have more bargaining power because both they and their workers are aware of the competition and that replacing workers is easier. Also the need to lower spending on welfare where more people working means fewer people claiming welfare. With lower welfare spending, governments can put more money into new schools or hospitals. Increased spending on health care and policing, which suggests that areas with high unemployment rates tend to have higher crime rates, too, coupled with the local population's poor health. The social and psychological effect of low unemployment rate cannot be totally ignored; high unemployment has been linked to psychological and physical disorders, divorce, suicide and crime. (Baumol...
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