COURSE TITLE : PRINCIPLES OF MACRO-ECONOMICS COURSE CODE : ECON1020 INSTRUCTOR : DAVID W. NERUBUCHA TASK: Analysis of the effects of monetary policy on Macroeconomics, GDP, Unemployment Inflation and Interest Rates. SUBMITTED BY: EMILY MOKEIRA ID. 641076 Introduction The root word of economics is economy. Economy comes from the Greek oikos - home and nomos - managing. (Dkosopedia, 2006) Economy can be described as the current soundness of financial indicators
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19225594 02 March 2012 Fiscal Policy and Monetary Policy Fiscal Policy Government's revenue (taxation) and spending policy designed to: (1) counter economic cycles in order to achieve lower unemployment, (2) achieve low or no inflation, and (3) achieve sustained but controllable economic growth. In a recession, governments stimulate the economy with deficit spending (expenditure exceeds revenue). During period of expansion, they restrain a fast growing economy with higher taxes
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credit unions, insurance companies, mutual funds, pension funds, and finance companies. 8. Answers will vary. 9. In the period from 2007 to 2011, both inflation and interest rates have generally trended downward compared to before that period. 10. The data in Figures 3, 5, and 6 suggest that real output, the inflation rate, and interest rates would all fall. 11. Businesses would increase investment spending because the cost of financing this spending is now lower, and
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In this paper, I will be analyzing 3 different business/economic cycles – a total of 6 economic aggregates – which will include a recession period and an expansion period. I will choose the current economic cycle as the basis to compare the performance of the economy since December 2007 to that of the other 2 business cycles on the basis of the 6 Economic Variables. As a data consistency analysis measure, I will make use of data from Federal Reserve Economic Data (FRED) and National Bureau of Economic
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1. What is the inflation rate? Is inflation a worry or are we in a period of stable prices? Inflation is the overall increase of price for goods and services. Inflation rate is the percentage in which the prices increases on goods and services. This rate is typically determined by the Consumer Price Index (CPI) and the Producer Price Index (PPI). The Bureau of Labor Statistics generates data monthly on the changes of prices. To calculate the inflation rate, you would take the difference in price
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MACROECONOMIC FACTORS AND THE ECONOMY 2 Abstract This paper discusses about how a monetary policy causes specific macroeconomic factors such as GDP, interest rates, inflation, and unemployment. It contains how monetary policies differ in managing an economy. It includes the proposed circumstances why or what would have happened if the monopoly was successful. MICROECONOMIC FACTORS
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First Draft of Fundamentals of Macroeconomics Paper There are numerousissues that actually affect our economy, such acts as gross domestic product (GDP), nominal GDP, real GDP, inflation rate, unemployment rate, and as well as interest rates. All of these area actually has massive influences over how we purchase groceries, weather there will be a large amounts of layoffs to employees, and decrease in taxes. What Gross Domestic Products is, is basically the market value of services and goods
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INFLUENCE OVER ECONOMIC GROWTH. The connection among unemployment inflation grabs the attention of many economist. According to okuris law, there is a visible clear connection among country’s outcome that is declined in unemployment lead to higher nation output. However, other popular economist William Philips said that there is inverse relation between unemployment inflation because Philips argued that when high reaction of workers causes increase in nations output which abo lead to high wage, customers
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Business Economics GM545 Project Part 2 Fall Session A 2011 Mohamed Bah t.bahafsl@yahoo.com _______________________________ DeVry University Keller Graduate School of Management New Jersey North Brunswick An economic system should provide two social needs for the people it serves first an adequate production of goods and second an equitable distribution of those goods. National Income is the science of how to measure an economy’s overall economic
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The introduction of playing cards as a currency in New France is simply due to a lack of a consistent currency within the colony. These playing cards issued by the Intendent of New France were used as currency in New France and is often referred to as “card money”. French coins being used a currency within the colony failed because of a shortage within of the coins with the colony (Heaton, 1928, pp.650-651). This failure of French coins to suffice as a currency within the colony and the commercial
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