will enlighten more about how the current account of the US can affect its economy. 1 Feenstra, Robert C., and Alan M. Taylor. "National and International Account." International Macroeconomics. New York: Worth, 2012. 172-77. Print. A current account deficit (CAD) occurs when a country has an excess of one or more of the four factors (goods, services, income and unilateral transfers) making up the account. When a current transaction enters the account, it is recorded as a credit and when
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Running Head: MACROECONOMICS TERM PAPER 1 Macroeconomics Term Paper MACROECONOMICS TERM PAPER 2 Abstract Using the required United States economic indicators the federal government uses to guide the economy, I researched and analyzed each indicator by comparing the data from 2010 to that of 2011. Even though a large number of economists are
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recession in 2009. An Government spending is an injection into the circular flow of income, while taxation is a leakage. Accordingly, government borrowing results in a net injection of aggregate demand to the economy, helping to generate business for firms and support output. This can be boosted by multiplier effects as the injection creates incomes for firms and workers, allowing them to spend and create income for others. Jobs are also created because the demand for labour is derived from the demand
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Mankiw, Macroeconomics 8e Chapter 3 1. The returns to scale in the production function Y = K0.5L0.5 are: A. decreasing. B. constant. C. increasing. D. subject to wide fluctuations. 2. If a production function has two inputs and exhibits constant returns to scale, then doubling both inputs will cause the output to: A. reduce by half. B. stay the same. C. double. D. quadruple. 3. If the supplies of capital and labor are fixed and technology is unchanging, then real
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SIX DEBATES over MACROECONOMIC POLICY SIX DEBATES over MACROECONOMIC POLICY ISSUES | YES | NO | 1. Whether or not monetary and fiscal policymakers should try to stabilize the economy | Advocates of active monetary and fiscal policy view the economy as inherently unstable and believe that policy can manage aggregate demand, and thereby, production and employment, to offset the inherent instability. When aggregate demand is inadequate to ensure full employment, policymakers should boost
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a free market economy, especially after more fundamental reforms since 1991 and their renewals in the succeeding years. The liberalized regime has paved the way for increasing direct and indirect investments in different sectors pushing level of income and employment in the
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Vietnam National University, Hanoi UNIVERSITY OF ECONOMICS AND BUSINESS Macroeconomics Home work 1. Measuring a Nation’s Income Section 1: Multiple choice questions 1. In producing a sweater, a man who shears sheep pays a farmer $4 for a sheep. The shearing shop sells the wool to a knitting mill for $7. The knitting mill buys the wool and makes it into a fine fabric and sells it to a sweater-making firm for $13. The sweater-making firm sells the sweater to a clothing store for
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individuals with a method of compensation based on the amount of labor is Socialist Fixed Capital is Equipment and machinery Working capital is not Equipment and machinery “Wealth is a value created in production due to labor and non labor income” is belonged to Smith Value which can bring additional value –Surplus value is belonged to Marx “ Capital reflects
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eriod. Answer: B Topic: GDP Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 3) Gross domestic product is a measure of the total value of all A) sales in an economy over a period of time. B) consumer income in an economy over a period of time. C) capital accumulation in an economy over a period of time. D) final goods and services produced in an economy over a period of time. Answer: D Topic: GDP Skill: Recognition Question history: Previous edition
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joined University of Illinois, then Carnegie University (1950-1960), and North-Eastern University (1960-1962) afterwards. Since 1962, as a professor of Massachusetts Institute of Technology, he continued he continued his researches in the field of Macroeconomics that he started before, especially Theory of Cash cylces. During these years, he begins study international financial and billing systems, consequences and methods of fighting with inflation, stabilization policy in open economies. Most widely
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