QUESTION 1 Explain why the study of macroeconomics is important in making business decisions. Macroeconomics is the study of the economy as a whole. It is the study of the aggregate demand and aggregate supply which reflect the demand and supply of everybody in the whole country. It examines the activities and trends in economy’s wide phenomena, such as unemployment, inflation, economic growth, money supply, budget deficits, and exchange rates. The knowledge from this study will indicate the
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while signs of overheating are becoming increasingly apparent in many emerging and developing economies. Strong adjustments—credible and balanced fiscal consolidation and financial sector repair and reform in many advanced economies, and prompter macroeconomic policy tightening and demand rebalancing in many emerging and developing economies—are critical for securing growth and job creation over the medium term. The global economy has continued to expand Despite some negative surprises, global growth
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The role of government in the U.S economy extends far beyond its activities as a regulator of specific industries or gatekeeping. The government is also responsible for managing the overall pace of economic activity, with its objective of maintaining high levels of employment and controlling price stability (inflation). It has two main tools for achieving these goals: fiscal policies, which is done through taxes and spending and monetary policies, through which it manages the supply of money. In
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India Tel: -91-120-2344324 E-mail: odahiya@gmail.com Manju Dahiya Manju Dahiya, Research Associate, Institute of Development Studies, M.D. University Rohtak (124001), Haryana, India E-mail: manju11jan@gmail.com Abstract Due to global financial crisis, issues relating to the growth of Indian economy have been the subject matter of debate and discussion at home as well as abroad. Global financial crisis affeced the growth rate of every sector of the economy but not as much as high, slogans annonced by the
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Economic and financial analysis of an ever-changing system A. Economics is about how society decides what gets produced, how it gets produced and who gets what. B. Microeconomics studies about individual decision making units. Macroeconomics deals with aggregate or total behavior of all households and firms. C. Finance is about how the financial system coordinates the flow of funds from lenders to borrowers and how new funds are created by financial intermediaries in the borrowing
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Fundamentals of Macroeconomics It is much easier to think to yourselves, “That has nothing to do with me,” or “Why should I care,” isn’t it? Many people go through life oblivious and not concerned about the situations around them. That especially holds true when in regards to the economy. Some believe the economy is a governmental issue and it is the government’s responsibility to maintain it. What many people do not realize is the fact that their actions also have an affect on how the rest
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foreign investment. The investment decision factors where the investors base their decisions are Macroeconomic, political, export market, openness, incentives, transparency, legal system, law and order, cheap labor, skilled labor, access to land, communications, transport, utilities and quality of life. The factors that hinders foreign investment and public investment in the Philippines are the main issues to be studied in this research BACKGROUND OF THE STUDY The GDP, a measure of the country’s
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President and Congress, usually relating to taxation and government spending, with the goals of full employment, price stability, and economic growth” (“Fiscal policy“, 2010). Keynesian economic theory states that governments should influence macroeconomic productivity by adjusting tax levels and public spending to curb inflation, increase employment and maintain a healthy value of money. During these trying economic times, dubbed “The Great Recession,” there are differing opinions on how to mitigate
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Introduction South Africa is a country which has had a difficult past and even though it has moved forward from the apartheid era into a democracy, the scars from the past still effect the growth of this country. In order to move forward so that South Africa may prosper a number of programmes have been implemented through the years in the hopes of creating social equality, improving the standard of living for all South Africans and growing our economy so that it can be strong enough to be a part
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Aggregate Demand and Supply Models Option 1: Economic Advisement Paper * Unemployment - Analysis and Recommendations A review of the current state of ‘unemployment’ shows that as of March 16, 2013, unemployment insurance initial claims are 336,000, with a current unemployment rate of 7.7% (dol.gov). Additionally, the consumer price index is up .7% (dol.gov). The most updated statistics for payroll employment shows that more than 236,000(p) as of February 2013, with average earnings up
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