...PENILAIAN TUGASAN ASSIGNMENT SUBMISSION AND ASSESSMENT _________________________________________________________________________ BBEK4203 PRINCIPLES OF MACROECONOMICS/PRINSIP MAKROEKONOMI MEI/MAY 2011 _________________________________________________________________________ ARAHAN KEPADA PELAJAR / INSTRUCTIONS TO STUDENTS 1. Tugasan ini mengandungi SATU (1) soalan sahaja yang disediakan dalam bahasa modul bercetak kursus ini. / This assignment contains only ONE (1) question that is set in the language of the printed module for the course. 2. Jawab dalam Bahasa Melayu atau Bahasa Inggeris. / Answer in Malay or English. 3. Muat turunkan templat tugasan versi bahasa yang berkenaan daripada MyVLE untuk penyediaan dan penyerahan tugasan anda. Tugasan anda hendaklah ditaip dengan menggunakan saiz fon 12 Times New Roman dan langkau baris 1.5. / Download the language version of the assignment template concerned from the MyVLE for preparation and submission of your assignment. Your assignment should be typed using 12 point Times New Roman font and 1.5 line spacing. 4. Tugasan anda hendaklah antara 2500 hingga 3000 patah perkataan tidak termasuk rujukan. Bilangan perkataan hendaklah ditunjukkan di hujung tugasan anda. Jangan menyalin soalan dan arahan tugasan dalam jawapan anda. / Your assignment should be between 2500 to 3000 words excluding references. The number of words should be shown at the end of your assignment. Do not copy the assignment question and instructions to your answer. 5. Anda...
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...A-LEVEL ECONOMICS ECON4/Unit 4: Mark scheme 2140 June 2014 Version 1.0 Final The National and International Economy Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant questions, by a panel of subject teachers. This mark scheme includes any amendments made at the standardisation events which all associates participate in and is the scheme which was used by them in this examination. The standardisation process ensures that the mark scheme covers the students’ responses to questions and that every associate understands and applies it in the same correct way. As preparation for standardisation each associate analyses a number of students’ scripts: alternative answers not already covered by the mark scheme are discussed and legislated for. If, after the standardisation process, associates encounter unusual answers which have not been raised they are required to refer these to the Lead Assessment Writer. It must be stressed that a mark scheme is a working document, in many cases further developed and expanded on the basis of students’ reactions to a particular paper. Assumptions about future mark schemes on the basis of one year’s document should be avoided; whilst the guiding principles of assessment remain constant, details will change, depending on the content of a particular examination paper. Further copies of this Mark Scheme are available from aqa.org.uk Copyright © 2014 AQA and its licensors. All...
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...Running Head: Macroeconomics Jaque Mcilwain August 9, 2012 Morales Macroeconomics Class Thursday 6pm Abstract I will be discussing the two types of circular flow diagrams: One that represents the flows in the macro-economy as closed system and one that represents the flow as an open system. Circular Flow Diagrams. Circular flow diagrams are an economic model that illustrates the way a countries money flows or the way a country operates. There are two different kinds of flow charts and they are classified as an open system and a closed system. An open economy is basically a country that is completely reliant on and influenced by other countries and their economies. In other words most of their flow of money is based on what other countries are doing to generate income and operates off how the other countries money flow through the economy. A closed economy is self-reliant and is not influenced by what goes on in other countries or by what goes on outside of their economy. In other words this economy relies on itself when taking into account about the way money flows. An example of an open economy is really the world by default. If any nation trades with another country then they are known as an open economy by default. The United States and Great Britain are great examples of an open economy because they are highly dependent upon importation and exportation of goods and the industry. An example of a closed economy would be North Korea an enemy of the United States...
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...Economic Activities Paper Jose G. Montoya ECO 372 September 9, 2013 Howard Blitz Economic Activities Paper In the study of macroeconomics there are many terms used to describe an economic event. In this paper it will describe terms such as gross domestic product, unemployment rate, interest rate, etc. that apply to these events. The effects of purchasing groceries, massive layoff of employees, and decrease in taxes on government, households, and businesses will also be described. Terms Gross domestic product (GDP) is what the price of a manufactured article or service which was made in a specified time period. Real GDP is the when the market makes adjustments for a variation in value or price, which is done by inflation or deflation. Nominal GDP is when GDP is measured at what the actual market prices are. Unemployment rate is the term that shows the difference of people in a region who are not working compared to the ones that are earning a salary. Inflation rate is the general raise in price of goods and services over a time. It basically shows a devaluation of currency by being able to buy less of a product or service. Interest rate is the amount of money paid to a lender for being able to borrow money, product, or services provided. The interest rate is figured from the principal, paid a certain amount of times over a period of time (Ruby, 2004) .These terms are used to describe various economic events that have happened, happening, or are being studied. Purchase...
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...the productivity gap; that we cannot put too much weight on any one factor but must see productivity as part of a wider picture; the extent to which productivity improvements are cancelled out by a rising rate of inflation and/or an appreciating exchange rate; productivity improvements become meaningless if we cannot sell any extra output in world markets for whatever reason, eg recession or poor quality. A maximum of 21 marks should be awarded if there is no explicit reference to the data. Issues and areas for discussion: • definition of macroeconomic performance • components of the macroeconomy • economic growth • price level • employment/unemployment • the balance of payments on current account assuming improved productivity benefits unit costs • labour productivity and how it might affect one or more of the above components • the productivity gap • the UK experience • the significance of the rate of inflation • the significance of exchange rate trends • the significance of macroeconomic conditions in the UK’s overseas markets • the significance of the rate of growth of AD • better productivity being unable to disguise the deindustrialisation that has taken place in the UK • the importance of considering in which sectors of the economy the greatest improvements in productivity are taking place • the extent of any improvement in labour productivity • the dangers of isolating, and putting significant weight upon, just one factor such as labour productivity ...
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...Fundamentals of Macroeconomics The following terms will be define, gross domestic product (GDP), real GDP, unemployment rate, inflation rate, and interest rate. The circular flow diagram will be introduced to describe the representation and interactions with households, government, and businesses. The current economic conditions of the world affects individuals. The most valuable economic indicators will be recognized as affecting the organization along with reasoning of the effect. Part One: * Gross Domestic Product (GPD)- The GDP has two approaches, income and expenditure. The income approach is measured by the income earned by national household during the year. The expenditure approach is the total at amount spent on goods and services produced in a nation by households, company's, the government as well as foreigners. * Real GDP- Real GDP is the change that shows the value of goods and services produced during a given year but is expressed in base year prices. To calculate real GDP, the nominal GDP is divided by a price index then multiplied by 100 (Colander, 2008) * Nominal GDP- Nominal is the opposite of real GDP. This is a figure that has not been updated for inflation or changes during a specific year. * Unemployment rate- This is the rate of the total work force, who are able to work, is unemployed. These people are seeking jobs and are willing and able to work. Depending on the economic situation of the country, the...
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...year period 1989-2009 is bounded by two major fiscal crises in Greece: the 1989-1993 crisis, and the ongoing crisis. In both crises deficits exceeded 15,0% of GDP. In between, Greece entered the Economic and Monetary Union and adopted the Euro To facilitate discussion the 20 year period will be divided into two parts: the 1989-1999 period, and the 2000-2009 period. 2 1989-1999: securing EMU membership The 1989-1993 sub-period: Macroeconomic developments Weak economic activity (1.2% average growth) Very high inflation (16.8% annual average) Very high real and nominal interest rates Low fixed investment (1.5% annual average) Fiscal developments Very high general government deficits (13.6% of GDP average) The 1990 deficit reached 15.9% of GDP Primary deficit averaged 4.3% of GDP Fast accumulation of debt Debt ratio increased from 69.0% of GDP in 1989 to 110.1% of GDP in 1993 Other reasons for debt accumulation Very high interest payments From 6.8% of GDP in 1989 to 11.4% of GDP in 1993 3 TABLE 1 Selected Macroeconomic Indicators (annual average rate) 1989-1993 Real GDP growth Fixed investment growth Inflation (CPI) General Government deficit (% of GDP) Primary Deficit (-) or Surplus (+) (% of GDP) Total general government expenditure (% of GDP) Total general government revenue (% of GDP) General Government debt (% of GDP) Current Account deficit (% of GDP) 1,2 1,5 16,8 -13,6 -4,3 48,7 35,1 73,7 -2,6 1994-1999 2,8 6,1 6,8 -7,0 4,0 48,7 41,5 109,0 -3,0...
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...Pranav Vikram Shriram 1264456 Introduction to Economics BS1547 Introduction to Economics Macroeconomics Assignment- 1 Neo-Classical and Keynesian “The study of how society, and those in society allocate scarce and hence valuable resources between competing uses can be defined as Economics”(Jones, 2013) which was founded by Adam Smith in 1776. “The field of Economics that deals with the aggregate economy and changes in its level of unemployment, national income, growth rate, GDP, inflation and price level is called Macroeconomics.”(www.investopedia.com) As economics developed two distinct approaches were seen to immerge the Neo Classical which stated that Macroeconomics = ∑Microeconomics and the Keynesian which stated the opposite. Both these approaches are still followed in the managing of the present world Economies. Figure 1. As seen above, Neo classical approach lasted several years before the Great Depression, but was revived once again after the period of stagflation when the Keynesian approach failed to improve the economic condition. The Neo Classists approach influenced by Adam Smith and others with reference to the ‘invisible hand theory’ (Jones, 2013) stated that the “market is best left alone and that it will adjust and clear itself and hence finding its own macro-equilibrium.” (Jones, 2013) Keynes suggested that this is not realistic approach and that “government intervention is needed for the market to reach its macro-equilibrium.” (Jones, 2013) The Neo Classical...
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...markets: demand and supply SL/HL core topics Part (a) questions 2.3 (a) Answers may include: • Definitions of demand and quantity demanded. • Theory of demand: law of demand with reference to changes in demand and factors that can cause changes in demand. • Demand and supply diagram showing initial equilibrium price and quantity, and a leftward shift in the demand curve, resulting in a lower equilibrium price and quantity and showing that there is no contradiction. • Examples of demand curve shifts and movements along a demand curve. Answers may include: • Definitions of supply and quantity supplied. • Theory of supply: the law of supply with reference to changes in supply and factors that can cause changes in supply. • Demand and supply diagram showing initial equilibrium price and quantity, and a rightward shift in the supply curve, resulting in a lower equilibrium price and greater equilibrium quantity. • Examples of supply curve shifts and movements along a supply curve. Answers may include: • Definitions of normal good, excess demand, reallocation of resources. • Theory of demand and supply with reference to excess demand, the factors that can cause shifts in the demand curve and the role of price as a signal and incentive. • Demand and supply diagram showing initial and final equilibrium price and quantity following a rightward shift in the demand curve leading to excess demand. • Examples of demand curve shifts. 2.5 (a) ...
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...It is hard to imagine that the sustained economic prosperity of the Roaring Twenties was soon followed by a severe worldwide economic depression. In 1929, the Great Depression began in the United States. By the time the economy hit rock bottom in 1933, real GDP plunged nearly 30%. Real per capita disposable income sank nearly 40%. More than 12 million people were thrown out of work; the unemployment rate soared from 3% in 1929 to 25% in 1933. Some 85,000 businesses failed. Hundreds of thousands of families lost their homes (Wheelock 2008). The money supply had fallen 35%, prices plummeted by about 33%, and more than one-third of banks in the United States were either closed or taken over by other banks (Parker 2010) . Milton Friedman and Anna Schwartz, in their 1963 book A Monetary History of the United States, 1867–1960, call this massive drop in the supply of money “The Great Contraction.” Monetarists, including Friedman, argue that the Great Depression was mainly caused by this monetary contraction, poor policy-making by the American Federal System, and continued crisis in the banking system. While there are many credited theories that provide an explanation for the Depression, this essay will focus on Monetarism and John Maynard Keynes’s argument for government stimulus in order to combat the economic downturn. Causes For The Great Depression In their book A Monetary History of the United States, 1867–1960, Friedman and Anna Schwartz stated that the Depression began with...
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...M14/3/ECONO/SP2/ENG/TZ0/XX 22145113 ECONOMICS STANDARD LEVEL PAPER 2 Tuesday 6 May 2014 (morning) 1 hour 30 minutes INSTRUCTIONS TO CANDIDATES not open this examination paper until instructed to do so. Do are not permitted access to any calculator for this paper. You Section A: answer one question. Section B: answer one question. fully labelled diagrams and references to the text/data where appropriate. Use maximum mark for this examination paper is [40 marks]. The 2214-5113 9 pages © International Baccalaureate Organization 2014 M14/3/ECONO/SP2/ENG/TZ0/XX –2– SECTION A Answer one question from this section. 1. Study the extract below and answer the questions that follow. Japan in first trade gap since 1963 Japan’s current account surplus fell 85.5 in November 2011 from a year earlier to % 138.5 billion Japanese yen (Japan’s currency) ($1.80 billion), the Ministry of Finance said. In 2011, Japan recorded its first deficit in its balance of trade in goods since 1963. The appreciation of the Japanese yen against the dollar has reduced Japan’s current account surplus. The Japanese yen gained 8.5 % against the dollar in the 12 months since January 2011. The currency has acquired a new and unusual status as a safe haven, reinforced by the eurozone debt crisis since international investors are concerned about the single European currency. It is estimated that a 1 % gain in the Japanese yen could reduce...
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...would be that the reduction in the cash rate would increase the export opportunities for the country and would act as fertilizers. The housing sector for the country has shown a good growth and this rate cut would also help in the easing of unemployment. The consecutive steps have been taken by Reserve Bank keeping in mind the fact that a lower exchange rate is needed for a balanced growth of the Australian Economy. Cash rate graph (source: www.global-rates.com) The Australian economy has constantly been altering cash rates as their monetary policy in the earlier years as inflation was never a big concern for the economy. We can further understand how the altering of cash rates will influence macroeconomic aggregates: Aggregate Demand and Aggregate supply curve From the shown diagram we can see that the demand AD1 is intersecting the supply AS1 in a flat area of aggregate supply. This situation is mostly seen when there is an excess economic capacity in the economy and minimal inflationary pressure. However, in the scenario of stagnated aggregate demand growth, there are high chances the economy might face a recession with a rising level of unemployment. In this situation to increase the aggregate demand the reserve bank of an economy lowers the interest rate to shift the aggregate demand...
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...study of macroeconomics and microeconomics provides the fundamental tools to assists business owners and finance managers in the decision making process. These tools also assist us in understanding how organizations and the economy operate as a whole. Many factors affect supply and demand. Price is the main factor that affects the supply and demand levels, this change can be reflected by a movement along the supply or demand curve. Factors that are not related to price, will shift the entire supply or demand curves. Before a firm decides to make changes in the price of their goods, it must determine the price elasticity of demand for that good. In this reflection paper, each team member will evaluate and discuss important economic concepts covered during week one. Discussions will also include any topics that members are having difficulty understanding. The portion I am having difficulty understanding is the production possibilities curve. I understand that in order to produce more of one item, you must give up some level of the production of another item. My problem is that I am not able to interpret all of the points in the production possibilities curve graph. (Maritza) Macroeconomics is the study of economies based on a national, regional and global scale. It measures the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. In order to accurately measure those categories macroeconomics looks at...
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...21 Shift in Demand 25 Shift in Supply 26 3. Elasticity of Demand and Supply 29 Price Elasticity of Demand 30 Types of Elasticity of Demand 31 Determinants of Price Elasticity of Demand 34 Price Elasticity of Supply 38 Types of Elasticity of Supply 39 Determinants of Price Elasticity of Supply 41 4. International Trade 44 Introduction to International Trade 45 International Trade Restrictions 48 Arguments in Favour of Restricting Trade 53 Non-economic Arguments for Restricting Trade 56 Problems with Trade Protection 58 5. Market Structures 62 Introduction to Market Structure 63 Perfect Competition 65 Monopoly 68 Monopolistic Competition 72 6. Macroeconomics – GDP, Unemployment, Money and Central Bank 77 Introduction to Macroeconomics 78 GDP 81 Unemployment 84 Inflation 89 [pic] |Principles of Economics | |BM2 | A WORD OF WELCOME | | |As a distinct discipline, economics has been studied for a few hundred years, yet civilisation have confronted the economic problem| |of scarce resource but unlimited wants for many years. Economics...
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...Economic Assessment: Outcome 2 &3 [Pick the date] 1a).What is Gross Domestic Product? GDP stands for Gross Domestic Product. GDP is the monetary value of all goods and services produced in a country within a given time period. Any goods or services produced outside the specified country is not included the country’s GDP. GDP is usually used as an indicator of an economy’s health and it also measure a country’s standard of living. GDP is often calculated quarterly and yearly and is used as a comparison to the previous quarter or year. GDP is composed of overall consumption of the country, government spending, investments and net exports (exports – imports). The formula for calculating is GDP = C + I+ G + (X-M). b).Distinguish between real gross domestic product and nominal gross domestic product. Nominal Gross Domestic Product is a monetary measure of the value of finished goods and services produced for a period of time (quarterly or annually). Nominal GDP does take inflation into consideration. Real Gross Domestic Product calculates the value of economic productivity in a given year accustomed for changes in price. It takes into consideration inflation before giving results. Real GDP is very different from Nominal GDP. This is proven below: 1. Nominal GDP does take inflation or deflation into consideration in its calculation whereas Real GDP is obtained only after including the effect of inflation or deflation. 2. Nominal GDP is calculated at current...
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