▪ Frictional unemployment ▪ Structural unemployment ▪ Full unemployment ▪ Cyclical unemployment 2. Globalization that allows governments to pursue expansionary policies can be dangerous because it can lead to: ▪ A reduction in the debt ceiling ▪ Goods price inflation ▪ Asset price inflation ▪ Goods price deflation Complete Answers here ECO 372 Final Exam 3. Macroeconomics is: ▪ The
The four fundamental factors that affect the cost of money are production opportunities, time preferences for consumption, risk, and expected inflation. k. What are some economic conditions (including international aspects) that affect the cost of money? Some economic conditions are budgets deficits, federal reserve policies, budget surpluses, level of business activity and international trade deficits or surpluses. The international aspects are country risk and exchange rate
MyEconlab…for test MAE102 Week 2: TOPIC 1 Economics is a social science because it studies the actions of individuals. The context in which we analyse the economy is always changing: Always movements along the market/central planning scale (Centrally Planned economy, Mixed economy, Market economy) Other political and social trends The level of openness the national economy is to the international markets (both goods/services as well as financial markets) Globalisation: Refers to the increasing interconnectivity of individuals and entities across national borders. In the context of –Economics- globalisation manifests instellf in increased capital flows, goods and services trading and information flows between economies.
A primary use of the PPI is to deflate revenue streams in order to measure real growth in output. A primary use of the CPI is to adjust income and expenditure streams for changes in the cost of living. The different uses because definitional differences that can be categorized into two critical areas: the composition of the set of commodities and services they include and the types of prices collected for these
Many economists believe “that a rapid stock of the nation’s money causes inflation” (pg.169). The rate of inflation can affect borrowing power for a new business owner as, “the rate of inflation expected by the borrower and the lender will be influence by various interest rates” (pg. 169). When inflation is high, many lenders interest rate increase to compensate for the impact inflation has on their business and the decrease in purchasing power of money that has to be paid back in the future. Since, the FED set the interest rate in which the banks borrow from, Edgars’ ability to borrow enough money or establish a line of credit to start his business will be affected by inflation, interest rate and financial policies.
When the demand for U.S. dollars increases, the value of the dollar will increase or appreciate (Stone 2008, pp. 685). As a result, U.S. products become more expensive for foriegners causing a reduction in exports and increasing imports. This not only effects the U.S. economy, but also affects the economies in other countries. Monetary policies influence and are influenced by international developments, including exchange rates, and based on these market conditions the U.S. government can make strategic changes to these policies to maintain the country’s economic stability (full employment, stable growth and price stability).
Proponents of the notion of a "political business cycle" suggest that: A. The standardized budget is a better indicator of the state of the economy than the actual budget B. Cyclical swings in the economy are produced by the inherent instability found in capitalist economies C. A possible cause of economic fluctuations is due to the use of fiscal policy for political purposes D. There is a tradeoff among goals that tends to make the economic policies of state and local governments procyclical 19. One of the timing problems with fiscal policy is an "operational lag" that occurs between the: A. Beginning of a recession and the time that it is recognized that the event is occurring B.
Week 1 Individual Analysis Week 1 Individual Article Analysis Rebecca Mouser ECO/365 Principles of Microeconomics May 13, 2013 Instructor Peggy Douglas Week 1 Individual Article Analysis “Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society” (Colander, What Economics Is, 2010). “In the study of economics, coordination refers to how the three central problems facing any economy are solved. The Three central coordination problems any economy must solve are what to produce, how to produce it, and for whom to produce it” (Colander, What Economics Is, 2010). “Economic theory is divided
Apple operates in an industry where the latest and greatest is old news by mid next month. There are constant changes which lead to huge dollars being spent to stay ahead of the competition. Apple has been successful as of late developing and introducing products that are wanted in the market place. They are extremely successful in creating a buzz around their products and a demand for the products which allows them to keep the prices high. One of the biggest challenges that Apple is facing is the compatibility to other computers and devices.
Introduction The Federal Reserve makes many decisions which can alter the course an economy takes. The Reserve has quite a bit of influence on how an economy recovers from both recessions and rising inflation due to extreme growth. A closer look will be made at the importance and function of money and how the central bank manages a nation’s monetary system. An explanation will be made to show what effects the Federal Reserve’s monetary policy has on the economy’s production and employment. Finally, a look inside the most recent Chairman’s Report will explain what direction the Reserve has decided to move in regards to monetary policy.