spending and tax policy affect real GDP. We’ll also see how ® What fiscal policy is and why it is an important tool in managing economic fluctuations ® Which policies constitute an expansionary fiscal policy and which constitute a contractionary fiscal policy ® Why fiscal policy has a multiplier effect and how this effect is influenced by automatic stabilizers ® How to measure the government budget balance and how it is affected by economic fluctuations ® Why a large
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Term Definition Paper Term Definition Paper Economics, similar to any part of analysis, has its’ own vocabulary. It's important to know the vocabulary, the philosophy behind it, as well as the effect or importance it has to our daily lives. For instance, some economical principles to concentrate on which can provide details to the state of the economy are: gross domestic product, real gross domestic product, joblessness rate, inflation rate, and rate of interest. Knowing the present economical
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3. For example, "the widget market" is referring to all the people who will buy widgets. 7. Macroeconomics - Nominal vs. Real GDP, and the GDP Deflator The main difference between nominal and real values is that real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP. Nominal values of GDP (or other income measures) from different time periods can differ due to changes in quantities of goods and services and/or changes
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Paul Henri Spaak of Belgium, Christian Pineau of France, Joseph Luns of the Netherlands, Antonion Segni from Italy, Joseph Bech from Luxemburg, and Konrad Adenauer from the Republic of Germany signed the Treaty of Rome in 1957 creating the European Economic Community(EEC), their long-term objective was the creation of a union bound by political integration with a market between members free from traditional barriers to trade. It was not until the late 1970’s the formal movement towards the monetary
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The current macroeconomic situation in the US is that there has been the mortgage crisis, crash of the stock market and we are heading towards a deeper recession. The US economy is currently concerned with unemployment but not inflation or a recession. The US economy is current concerned with unemployment because the unemployment rate has not been this high since 1981 (Amadeo, 2012). The current unemployment rate is 8.3 percent. There may be a lot of unemployed people but it does not include the
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INTRODUCTION * Economics is divided into two branches: Microeconomics and macroeconomics. 1. Microeconomics is the study of how individual Households and firms make decisions and how they interact with one Another in markets. 2. Macroeconomics is the study of the economy as a whole. The Goal of macroeconomics is to explain the economic changes that affect many Households, firms, and markets at once. * Macroeconomists address diverse questions: * Why is average income high
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is with this in mind that we explore the classic or naive discounted cash flow modelling techniques. 1 Introduction The essential steps for a DCF are: 1. Gather information: Use historic Income, Balance Sheet & Cash Flow Statements to calculate ‘earnings’, ‘cash flows’ or any other variable you’re trying to obtain data for, 2. Generate Forecast Assumptions: based on our historical observations generate a starting cash flow range, growth rate and discount rate assumptions . . . 3. Actually
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[pic] Professional Higher Education Bachelor's Programme “European Business Studies” Course Paper in Economics TITLE Author: _______________ Group D1AX Supervisor:_______________ Riga, Month 2013 TABLE OF CONTENTS 1. Introduction 3 2. Literature survey 4 2.1 The nature of inflation 4 2.2 Methods of measuring inflation 6 2.3 Reasons and consequences of inflation 9 3. Practical rationale for analysing
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will be analysed in this report by using multiple stage valuation model with fluctuated growth rate in the 10-year explicit forecast period and stable growth in terminal period. The reasons to choose 10 year forecast period are as follow: The economic environment of Australia is relatively stable now. There is no large change such as war, or no revelatory industry technology improvement. Company will be able to reach a stable state after 10 years; Moreover, since the government regulation for
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the most recent recession. Macroeconomic factors such as economic output, unemployment, inflation, savings, and investment are key indicators of economic performance. Sivy, M. (2013) states “Economic growth has averaged less than 2.25% since the recovery began and is estimated to have slowed to less than 1% in the most recent quarter” (para . 1). A current credit market report states that Treasury prices remain high based on uncertain economic data and the looming debate in Congress on spending cuts
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