Running head: ENVIRONMENTAL SCAN Environmental Scan The current economy has become known as the Great Recession, since it is the deepest and longest since the depression of the 1930s. There are high rates of unemployment and underemployment. Technically the recession is over; however world events and dependent economies of other countries could reverse this progress. The purpose of environmental scanning is to anticipate and strategize for the opportunities and challenges that could be
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aggregate demand and aggregate supply. (Riley 2006) Fiscal policy is used to achieve macroeconomic objectives such as full employment, price level stability and sustained economic growth. Expansionary fiscal policy is an increase in government expenditures or transfer payments, or a decrease in tax revenue. A tax cut will increase AD because it increases households’ disposable income. The greater the disposable income the greater is the quantity of goods and services demanded and therefore the greater
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yearly budget on the month July. For example, only certain types of revenue may be imposed and collected. Property tax is frequently the basis for municipal and county revenues, while sales tax and/or income tax are the basis for state revenues, and income tax and corporate tax are the basis for national revenues. The two basic elements of any budget are the revenues and expenses. In the case of the government, revenues are derived primarily from taxes. Government expenses include spending on current
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R The Science of Macroeconomics The whole of science is nothing more than the refinement of everyday thinking. — Albert Einstein 1 O N E 1-1 What Macroeconomists Study Why have some countries experienced rapid growth in incomes over the past century while others stay mired in poverty? Why do some countries have high rates of inflation while others maintain stable prices? Why do all countries experience recessions and depressions—recurrent periods of falling incomes and rising unemployment—and
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performance of the Rehn-Meidner model in Sweden. Although never consistently applied, it is possible to distinguish a golden age for the model from the late 1950s to the early 1970s. In the 1970s and the 1980s, governments abandoned the restrictive macroeconomic means of the model and were thus unable to combine low rates of unemployment with low inflation and high economic growth. Since the early 1990s, Sweden has not met the requirement of full employment in the Rehn-Meidner model. Recent declarations
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state regulation to impose protective tariffs on foreign manufactured goods and prohibit manufacturing in the colonies. Physiocrats, a group of 18th century French thinkers and writers, developed the idea of the economy as a circular flow of income and output. Physiocrats believed that only agricultural production generated a clear surplus over cost, so that agriculture was the basis of all wealth.
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60 billion dollars down to 1,023 billion dollars in 2009, a 5.85% reduction in expenditures (“Table 1.1.6”, 2015). 2. What was GNP for 2009? According to Table 1.7.5. (Relation of Gross Domestic Product, Gross National Product, Net National Product, National Income, and Personal Income) the GNP in 2009 was 14,569 billion dollars (“Table 1.7.5”, 2015). a. What is the difference between GDP and GNP?GNP was used as the primary measure of production in the United States until it was replaced by the
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AID AND THE DUTCH-DISEASE IN ETHIOPIA Monetary Policy and Economic Research Directorate National Bank of Ethiopia Teferi Mequaninte tefmeq@yahoo.com May, 2005 SECTION ONE Introduction Following the introduction of the Structural adjustment program (SAP) in 1992 to the Ethiopian economy, there was a massive inflow of foreign aid in the form of grants, concessional loans and technical assistance. Net aid1 inflows to Ethiopia during the Derg period were around 7
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proposals and fiscal incentives that could boost capital investments, mostly in infrastructure, to achieve growth rates of 5% per year. During his first term Lula reduced poverty and income inequality. Lula´s cash-transfer programs reduced the number of poor people significantly and brought down the Gini coefficient of income inequality to its lowest level in recent history. Lula maintained a policy of price and exchange rate stability, increased government savings, paid off the balance owed to the IMF
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Key term | Definition | Accelerator | A change in the level of investment in new capital goods is induced by a change in the rate of growth of national income or AD. | Actual output | Level or real output produced in the economy in a particular year, not to be confused with the trend level of output. The trend level of output is what the economy is capable of producing when working at full capacity. Actual output differs from the trend level of output when there are output gaps. | Aggregate
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