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University Degree: Macroeconomics
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By macroeconomic perspective it?s governments? job to set a balance between unemployment and inflation level which will be analysed in this essay. Unemployment level represents the actual and potential ?labour force? in the economy independent from the whole population. Governments aim to keep unemployment and inflation in a level within certain limits. The trade-off-debate between two concepts will be analysed by Phillips Curve Theory throughout the essay. (Economics.Help, 2013) Phillips Curve explains the inverse relation between unemployment and inflation. The reason governments desire to have a low level of inflation level is to avoid the negative outcomes of it on the economy.
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To what extent have economists provided a satisfactory theoretical and empirical explanation of the global patterns of trade?
This means that, when countries traded, one country got rich at the expense of the other one. Nations resorted to waging war between each other in order to gain the other?s resource and exploit them for wealth. It was not until Smith, 1766, that the idea of international trade being crucial in raising global living standards was introduced. The belief that countries may have an absolute advantage, meaning that a nation is more productive in the manufacture of a good than another country, marks the basis for international trade.
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In perfectly competitive markets, producers take prices as given. Let?s start with the behaviour of producers in perfectly competitive markets; remember, they take the price as given. Imagine that, for some reason, the aggregate price level falls, which means that the price received by the typical producer of a final good or service falls. Because many production costs are fixed in the short run, production cost per unit of output doesn?t fall by the same proportion as the fall in the price of output.
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The Impact of Domestic Policies on UK Investments & Exports During the Financial Crisis (1970 - 2011)
The impact of inflation on UK exports revealed that higher domestic prices not only discouraged foreign buyers from purchasing domestic goods, but domestic consumers were also discouraged from purchasing domestic goods. Increasing imports were therefore explained by this and so declines in UK exports were also explained by this conclusion. Further to this, the impact of inflation on consumption, imports and government expenditure is outlined. Lastly, the UK?s economic growth is also assessed using real GDP growth as a form of measurement, where it is found that consumption is the largest contributor to the growth of GDP.
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Q1B When looking into the effect of a significant decrease in the construction activity would have upon the level of National Income there are various theories that can be looked into and how this changes the outlook of National income. When looking at the background of National Income determination we can look upon the views of two economists: Say and Keynes. The Say Law view states ?Supply creates its own demand? (1936) and The Keynes view which stated ?Demand determines Supply? (1931)
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Explain the concept of the consumer price index (CPI) and explain how it is measured. What is the latest CPI figures in Australia (Sept 2012)?
Instructions The written answer is to be in the form of a typed report and should include referencing. The written answer is to be a maximum of 500-800 words. This excludes diagrams and references. Information on correct referencing can be found in the under the General information Icon on Blackboard. You must record your name and student number in the Header of the report. If you fail to submit your submission questions by the due date it will be given a mark of zero.
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So important today is to examine the problems of Russian inflation and anti-inflationary measures taken by public authorities to reduce its rates. The purpose of this course is to study the characteristics of inflation in the Russian economy on the basis of the analysis of inflation. The objectives of the course work are: - The study of essence of inflation and identify its causes; - Socio-economic effects of inflation; - Identification of the problems of reducing the rate of Russian inflation; - Consideration of the main methods of regulation of the Russian inflation; - The study of the inflation forecast in Russia.
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"Can financial markets ever be considered to be truly efficient; given that insider trading is prohibited in a number of jurisdictions? Further, what might have been the pitfalls and the benefits of relaxing insider trading prohibitions?
Examples of financial markets include the New York stock exchange (NYSE) and the forex markets. Insider trading defines the buying and selling of securities by someone who has access to material, non public information about the security. A controversial example of this was the Kenneth Lay Enron scandal in which Mr. Lay used his inside knowledge as a company director to sell his shares in the company just prior to the company filing for bankrupt . At present, there are three main types of market efficiency; Allocative efficiency (production and distribution), Operational efficiency (market micro structure)
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Finally, it will present the author's own ideas on this issue and give some probable suggestions. The concept of middle-income trap and some evidence Although the term has greatly attracted people's attention, little evidence confirms the existence. Here, we will discuss the definition of "middle-income trap" and the different income groups classified by the World Bank through reviewing the recent research. Then there will be some details of each group such as the threshold, the increasing rate and the possible threshold years. Debates on whether these countries will fall into the middle-income trap The rapid development of "BRIC" becomes a hot topic and inspires debate among scholars on whether these countries will stop and fall into the middle-income trap.
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Commentary. The article proposed a dilemma that State Bank of Pakistan (SBP) is facing at current. Form the last couple of years SBP has been tightening its monetary policy in order to control inflation which posed a serious problem to the health of the e
The decrease in the interest rate would restore the health of the economy by supporting sustainable growth, promoting investment spending and creating job opportunities. But the condition has been changed as the future bright outlook of the economy has proved to be futile and it is said to be a difficult thing for the SBP to cut the interest rate any further mainly due to adverse economic conditions. Cut in the interest rate on the other hand is also a need of the era and business community around the country is demanding it.
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GDP per capita $1371(nominal) 4. GDP per capita $3408(ppp) GDP by sector Service- 55.2% Industry- 26.3% Agriculture- 18.5% Consumer price Index In an economy, it is not possible that price of all goods and services will always be the same. It keeps changing and it badly affects a country?s purchasing power. The CPI is used to measure Inflation is our country. Food inflation in India has always been an issue to take care of. It seems it?s too difficult for the government to bring food inflation under control.
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Clearly explain and discuss the theory of comparative advantage. Given the economic benefits of trade (according to the above theory) why do some countries (give examples) attempt to restrict trade?
It is said that the country has an advantage over another country at producing that good. So a country should produce and export the product in which they have a smaller absolute disadvantage, and import the other product which they have a greater absolute disadvantage over. To illustrate this I will be referring to an example originally used by David Ricardo regarding the production of cloth and wine from England and Portugal. In Portugal it is easy to produce both wine and cloth, whereas in England it is difficult to produce wine but relatively easy to produce cloth.
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