Why do Keynesian economists believe market forces do not automatically adjust for unemployment and inflation? What is their solution for stabilizing economic fluctuations? Why do they believe changes in government spending affect the economy differently than changes in income taxes? Keynes theorized that when unemployment raises the amount of goods that are in demand by countries citizens decreases and as these demands decrease the amount of output by the countries manufactures also decreases. As the demand for one product decreases it can cause a chain reaction lowering the demand for products needed to produce the first product.
Although the broker option is a viable investment with positive returns, as shown on Table 2, the NPV is not as favorable compared to option 1. The profit index for the broker option calculates to 2.84 compared to 3.34 for the high-tech option. This means that for every dollar invested Guillermo returns this percentage based on the initial investment and the current cash inflows per
Consumer price and producer price in 2009 to 2012 continue to drop and raise the price for consumers was not steady. The direction and magnitude of price change in the Producer Price Index for finished goods anticipates a similar change in the Consumer Price Index for all items. When this assumed relationship is contradicted by the actual movements of the two series. The answer is that conceptual and definitional differences between the PPI and CPI—differences which are consistent with the uses of the two measures—contribute to the differences in their price movements. A primary use of the PPI is to deflate revenue streams in order to measure real growth in output.
When Ross Perot ran for president as a third party candidate in 1992, he argued that free trade with Mexico would result in massive job losses in the United States because Mexican wages were so low. Which of the following is the best explanation for why few economists agreed with Perot? 15. If MR < MC, a monopolist should: 16. Refer to the graph shown.
Project You Decide The unemployment rate is going to reach 20% if nothing is done. What advise can we give the president of the United States to avoid this high unemployment rate? My advisor Mr. Burke would recommend that the President lowers interest rates further to help businesses and consumers get back on their feet. This addresses to the Federal Reserve Bank to stimulate the economy by making the barrowing easy. Miss Lee is suggesting tax increase and government spending reduction.
This shows Targets improvement over time to pay its current liabilities based on available cash, short term investments, and receivables. Some items that may have impacted the quick ratio were a major increase in cash & equivalents as well as a generous increase in receivables from 2007 to 2008. Target’s quick ratio was higher than Wal-Mart’s quick ratio. This is an important comparison as Target’s ratio was higher than Wal-Mart’s regardless of the fact that Wal-Mart is a larger company that has traditionally outperformed
Voodoo Anyone? Christopher Warden breaks down economics into a fool proof explanation, and uses terms references which a dummy could understand. As I read this informative book I gathered an understanding for the way in which our economy works, as well as the unseen ways in which our government handles the issues that affect our everyday life. In the first chapter, the author discusses what prices are the difference between the price of things, and the cost of things. He breaks down what the stores charge us in order to sell the product at a price we will pay, so the store can still make a profit on the item.
International Trade ECO 372 University of Phoenix There are many contributing factors to the stabilization and prosperity of our global market. We, the United States, are living in a time of severe trade deficit, meaning that we are importing many more goods than we are exporting. While it is nice to be able to buy foreign products at a lower price, there is risk in doing so. When we purchase foreign goods over domestic at lower prices it forces our domestic companies to sell their goods at lower prices to remain competitive. These lower prices may lend to making enough profit to sustain the current workforce.
Evidently there is an unequal relationship between the north and south, which could be mainly due to the fact many of the southern countries were owned by the north in the past. The level of consumption differs greatly between the north and south. The northern countries tend to be more developed, with larger and more stable economies, which result in most of the population sustaining a higher standard of living and having more money to spend on goods and services. The north also has an excess of Transnational Corporations which encourage the high consumption levels. Whereas in the south; large percentages of the population cannot afford to buy goods which are not absolutely necessary, as they live in poverty.
Income Inequality, Is It a Problem? Rachael Johnson ECO100: Survey of Contemporary Economic Issues Lisa Turner July 26, 2010 Income Inequality, Is It a Problem? There is a in depth literature on the issue of income inequality, summed up by Milanovic (2006).“Since it is only through contact that recognition and tension are created, one could argue that the reduction of physical misery associated with low income and consumption levels permit an increase rather than a diminution of political tensions the political misery of the poor, the tension created by the observation of the much greater wealth of other communities may have only increased." In spite of the later damage of the reputation of his representation of income inequality