economy. c. (4 marks) As a policy adviser to the government would you suggest the use of Fiscal policy or Monetary policy if the aim were to increase aggregate demand without reducing net exports. Use appropriate diagrams to illustrate your answer. Question 2 (a) (10 marks) Describe the demand and supply model of foreign exchange and use the model to explain how the exchange rate is determined under a fixed and under a floating exchange rates. Use appropriate diagram to illustrate you answer.
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PRODUCTION MANAGEMENT 1. Define production: According to Elwood Butta “production is a process by which goods or services are created”. Production involves the step by step convertion of one form of material into another through chemical or mechanical process with a view to enhance the utility of the product or services. 2. Characteristics features of production system? 1. Production is an organized activity. 2. The system transforms the various inputs into useful outputs. 3. Production system does
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rate has an effect on the aggregate supply and demand. Unemployment means that fewer people have disposable income to spend on goods and services (zhang, 2014). Lack of spending from the consumers makes it difficult for business to thrive and expand, which reduces economic growth (Zhang, 2014). Consumers are no longer spending money leading to a decreases in demand for goods and services. When there e is a decrease in demand the businesses and supplier lower their supply of goods and services. This
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and economic models such as Amazon.com or Netflix. Anderson later extended it into the book The Long Tail: Why the Future of Business is Selling Less of More (2006). Businesses with distribution power can sell a greater volume of otherwise hard-to-find items at small volumes than of popular items at large volumes. (The original term is a military one, describing the logistic chain of support an army required: it has been said there is a "long tail" leading from rear-area supply centres up
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Economic Forecasting Paper Two historical economic data where information can be found are Bureau of Economic Analysis, U.S. Department of Commerce and FRED, Economic Time-Series Database. The FRED database comprises the national economic and financial statistics as well as interest rates, consumer price indexes, employment and population and trade data. This database is a valuable source because this consents populaces to see how the country's financial state is. The Bureau of Economic Analysis
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Ruben Alvarez Professor Salmon Namala Macroeconomics 201 16 May 2015 Outline Main Points 1) America the Relatively Beautiful The bow-tie-wearing president of Estonia, Toomas Hendrik Ilves, told a story in Davos about a young Estonian inventor he invited to tea in the summer of 2011 who told him he was moving to the U.S. in two weeks to make his fortune. His name is Hardi Meybaum, and he co-founded a computer-aided-design company called GrabCAD. Last fall the now-Boston-based company
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is in a recession. You feel that a policy of exchange rate depreciation will stimulate aggregate demand and bring the country out of the recession. This essay examines the effectiveness of using exchange rate depreciation to stimulate aggregate demand in order to bring a fictional country, Australand, out of recession. It will explain how a policy of exchange rate depreciation can increase aggregate demand and how this will stimulate economic activity and bring Australand out of recession. The
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ECONOMICS 201: PRINCIPLES OF MACROECONOMICS Fall Term 2015 2:00-3:15 PM Mondays and Wednesdays Room 1090 CASL CRN # 11014 Section 004 Carol Hogan Office Hours: 10:00-10:45 AM 2190 Social Sciences Building Mondays and Wednesdays, 1:00- 313-436-9181 1:45 PM Mondays and Wednesdays, clhogan@umich.edu 5:00-5:45 PM Mondays, and by appointment |ECON 201 - Prin: Macroeconomics
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the Keynesian and monetarist theories, ranging between demand-pull, cost-push, built-in inflation, and the quantity model. With demand-pull, inflation is caused by aggregate demand being more than supply. With cost-push, inflation is caused when manufacturers and businesses raise prices due to shortages in order to balance increases in production costs. With built-in inflation, inflation occurs due to prior increases in prices caused by demand-push or cost-pull. And with quantity, inflation is caused
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the welfare changes for the mobile factor are ambiguous. Measuring gains vs. losses would be difficult as welfare is inherently subjective. A better way is to see if those who benefit can compensate others who lose and still be better off. Aggregate gains from trade can be shown as followed: In a country that cannot trade, the output of a good must equal its consumption. If DC is consumption of cloth and DF consumption of food, then in a closed economy, Dc=Qc and Df=Qf With trade the value
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