do you think would be the correct macroeconomic policy response? Government can reduce the corporate tax. This will encourage private spending to continue and keep the unemployment in check. While since the government spending will reduce due to reduced revenue from corporate tax, the real GDP will reduce to potential GDP and the unemployment rate will be kept at check. c. How would the economy return to equilibrium in the absence of any change in macroeconomic policy? The economy will return
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secondary data. Literature review: Gay and Robert (2008) investigated the impact of macroeconomic factors on the returns of four emerging markets. The emerging stock markets included were India, Brazil, China and Russia. Their multifactor model comprised of exchange rate and oil prices. By employing ARIMA model on monthly data of March 1999 to July 2006, they concluded that these two macroeconomic variables had no significant relationship with the returns of emerging markets. Hassan and
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| Investment Climate in Pakistan | The investment climate of any country can be better estimated by analyzing three broad indicators that include macroeconomic (fiscal, monetary, exchange rate and political policies etc), governance (bureaucratic, financial and legal systems etc) and lastly infrastructural support (transportation, electricity supply and communication etc). The two major strengths and shortcomings of investment climate of Pakistan based upon above criterion are as follows
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which I used data, ideas, or words either quoted or paraphrased. Date : __________________________ Signature: Abstract As dictated in fundamental Macroeconomic theory, there are four main components that are involved in calculating a nation’s GDP: personal consumption, business investment, net exports and government spending. The formula, therefore, Y= C+I+E+G, provides a mathematical framework that shows
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phasha c m, 201101770 World Bank Indicators - south Africa - Balance of payments | Previous | Last | Changes in net reserves (BoP; US dollar) in South Africa | -5737274937.1 | -2225389979.1 | Communications; computer; etc. (% of service exports; BoP) in South Africa | 15.6 | 17.5 | Communications; computer; etc. (% of service imports; BoP) in South Africa | | | Current account balance (BoP; US dollar) in South Africa | -20018338880.5 | -20083348347.4 | Current account balance (%
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Anglais (TCB) Contraction croisée: Ces étrangers qui investissent en France. The article « Ces étrangers qui investissent en France » published in the French financial newspaper Les Echos on October 22nd 2012 highlights that more and more foreign companies invest in France. Only during 2011, 700 FDI, which represent 28000 jobs, were done. At once, it seems that France presents more drawbacks than advantages for foreign investors. In a crisis situation; we could have thought that the workforce cost
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Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster) Chapter 9 The Government and Fiscal Policy 9.1 Government in the Economy 1 Multiple Choice 1) Fiscal policy refers to A) the techniques used by a business firm to reduce its tax liability. B) the behavior of the nation's central bank, the Federal Reserve, regarding the nation's money supply. C) the spending and taxing policies used by the government to influence the economy. D) the government's
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The evolution of internationalization There have been a variety of different approaches to explain the internationalization of business activities. They normally concentrate on distinct aspects of the reasons for and results of, enterprises operating in more than one environment and have changed dramatically throughout the last decade. Whereas traditional theories have focused their attention on the internationalization of production and foreign direct investment (FDI) where the multinational
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What is the relationship between social policy and economic policy? (Your answer must refer to Keynesian and Monetarist economic ideas in relation to welfare Trying to explain the relationship between social and economic policy can be seen as quite a complex task. But, if you look at the wider picture it can be said to become quite easy to see if the two go well together and how they intertwine with eachother to benefit the welfare state. In order to go further and try to explain the relationship
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Economic Growth- GDP Economic Growth… …An increase in an economy’s ability to produce goods and services Gross Domestic Product- represents the value of a country’s national income in one year. An increase in real GDP means that the standard of living within a country is increasing. It is therefore used as a way of measuring a country’s economic growth. The Business Cycle- there are discernable patterns in these levels over time, there will be periods of time when economic activity is rising
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