Intermediate Macroeconomics Spring 2015 No aids allowed and choose 4 out of 6 questions to answer in the bluebook Study topics: 1. Time horizons in macroeconomics (short-run vs. long-run) 2. Why are prices sticky in the short-run 3. AD curve 4. Short-run AS curve 5. Long-run AS curve 6. Short-run to long-run adjustments in the AD-AS framework (through prices) 7. Economic shocks 8. The goods market and the IS curve (Keynesian cross, equilibrium equation, derivation
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The Fiscal Policy In Macroeconomics, the term Fiscal Policy refers to a tool used by the government to regulate the different levels of economic activity of a country. This policy drives the budget by controlling government spending as well as the collection of revenues in order to directly influence the country's economy. The government implements this policy through various programs in order to produce expected results on the nation’s income, stabilize economic growth, and maintain high levels
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Macroeconomics BE-202 Exchange Rate Determination and Open Economy Macroeconomics Recall fiscal policy mainly works through consumption spending (C) and government spending (G). Monetary policy has a major impact on investment spending (I). Question: What is the major factor influencing net export? 1. Exchange Rates An exchange rate is the # of units of one currency trading for one unit of another currency. Example: Assume that 4 Euros (€) trade for 1 U.S. Dollar (USD). The exchange
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of 10 policies that the US treasury, the IMF and the World Bank believed were necessary elements of “first stage policy reform” that all countries should adopt to increase economic growth. At its heart is an emphasis on the importance of macroeconomic stability and integration into the international economy - in other words a neo-liberal view of globalization. The framework included: * Fiscal discipline - strict criteria for limiting budget deficits * Public expenditure priorities
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Macroeconomic Policies Affecting the Auto Industry In most countries, the level of automotive production is closely correlated to domestic or regional automotive sales. Also the level of automotive sales and production is closely related to disposable income levels, interest rates and finance availability, consumer confidence and other factors influenced by macroeconomic policies. Production in particular often has long lead times, so consistent and predictable economic progress is important. Therefore
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Eastvaco’s strengths and weaknesses? Eastvaco Corporation is a leader in manufacturing paper, packaging, and chemicals. The company has three business segments based on their product categories. The company has been affected by different micro and macroeconomic conditions. Based on the financial statements and supplemental information provided by the 10-K submission, the strengths and weaknesses of Eastvaco are: Strengths: 1. Strong brand recognition being the largest manufacturer of paper, packaging
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analysis: • Involves assessing the short-, medium- and long-range prospects of different industries and companies. • It involves studying everything, other than the trading on the securities markets, which can have an effect on a security’s value: macroeconomic factors, industry conditions, individual company financial conditions, and qualitative factors such as management performance. • Most important factor: the actual or expected profitability of the issuer, thus fundamental analysis pays attention
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Chapter 31: Open Economy Macroeconomics: Basic Concepts Principles of Economics, 7th Edition N. Gregory Mankiw Page 1 1. Introduction a. This another important chapter because its conclusions differ from those that you often read in the newspapers. b. We are shifting from a closed to an open economy. c. Closed economy is an economy that does not interact with other economies in the world. P. 660. d. Open economy is an economy that interacts freely with other economies around the world. P. 660.
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BRANDEIS UNIVERSITY International Business School Case Write-Up The Fiscal Mismanagement and Fixed Exchange rate were the cause of Argentina 2001 Crisis Summary: Argentina’s economy verge to a state of collapse in the year of 2001, but the economy started to struggle with an economic recession in 1997. The fiscal mismanagement paired with the fixed exchange rate policy conducted the country to a financial crisis. IMF policies in lending to a country with struggling economy made people
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INTRODUCTION The early establishment of ancient empires marked the beginning of the history of economics. As early as man learnt how to socialize with the advancement in reasoning and writing, a clear formation of economic structures started. The discipline of economics, as we understand it today, emerged in the 17th and 18th centuries as the western world began its transformation from an agrarian to an industrial society. The word “economics” is derived from the Greek word “okionomia”, which means
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