Macroeconomics concepts include the circular flow of income, GDP, GNP, nominal and real GDP, the human development index, and the business cycle. Aggregate demand is made up of consumption, investment, government spending, and net exports. Supply-side policies aim to shift the long-run aggregate supply curve to increase potential output. Unemployment types include frictional, seasonal, structural, demand-deficient, and real wage unemployment. Inflation can be demand-pull or cost-push, while deflation is a persistent fall in prices. Fiscal and monetary policies can be used to influence aggregate demand.
This document provides an introduction to macroeconomics. It discusses the key components and concerns of macroeconomics including inflation, output growth, unemployment, and income distribution. It also covers aggregate demand and supply, the circular flow model, and the roles of households, firms, government and the international sector in the macroeconomy. Government policies aim to achieve price stability, economic growth, full employment, and an equitable distribution of income.
The document summarizes key concepts related to the business cycle and macroeconomics. It defines phases of the business cycle like peaks, recessions, troughs, and recoveries. It also defines related terms like unemployment, inflation, fiscal and monetary policy tools. Charts are included to illustrate the business cycle and measures like the unemployment rate.
The document discusses fiscal policy and the business cycle. It explains that aggregate demand is the total demand for goods and services in an economy. Fiscal policy uses government spending and taxation to influence aggregate demand and output. The government can implement expansionary fiscal policy through tax cuts and spending increases to boost a recession-plagued economy. It can enact contractionary fiscal policy via tax hikes and spending decreases to curb inflation. Automatic stabilizers and the multiplier effect also impact how fiscal policy affects aggregate demand and the business cycle.
aggregate demand and aggregate supply for 2nd semester for BBAginish9841502661
The document discusses aggregate demand and aggregate supply. It defines aggregate demand as being underpinned by consumers, investors, government and foreigners. Aggregate supply reflects a positive relationship between price level and output in the short run due to price-cost dynamics. In the long run, aggregate supply is vertical as output is determined by fixed resources and technology. Macroeconomic equilibrium occurs where aggregate demand and supply intersect.
1. This chapter discusses fiscal policy as a tool for stabilizing the economy through manipulating government spending and taxes.
2. It explores discretionary and automatic fiscal adjustments using the AD-AS model and covers problems like recognition lags that complicate fiscal policy effectiveness.
3. Evaluating fiscal policy involves examining standardized budgets that adjust for cyclical factors to determine if policy is expansionary or contractionary.
The business cycle refers to the periodic but irregular up and down movements in economic activity, as measured by real GDP. Business cycles involve alternating periods of expansion (boom) and contraction (recession or depression). Recent cycles have become less severe, with expansions lasting longer and contractions shorter on average. The four main phases of the business cycle are recession, depression, recovery, and boom. Leading economic indicators can provide insight into where the economy may be in the business cycle around 12-15 months in the future.
The document discusses macroeconomic policies used by governments to influence aggregate demand and supply. It explains that fiscal policy involves varying public expenditure and taxation to manage demand, while monetary policy changes interest rates and the money supply. Expansionary policies boost demand during recessions by cutting taxes or lowering interest rates. Contractionary policies reduce demand to curb inflation by raising taxes or interest rates. The document also discusses supply-side policies aimed at boosting productivity through incentives, education, deregulation, and other measures.
Macroeconomics concepts include the circular flow of income, GDP, GNP, nominal and real GDP, the human development index, and the business cycle. Aggregate demand is made up of consumption, investment, government spending, and net exports. Supply-side policies aim to shift the long-run aggregate supply curve to increase potential output. Unemployment types include frictional, seasonal, structural, demand-deficient, and real wage unemployment. Inflation can be demand-pull or cost-push, while deflation is a persistent fall in prices. Fiscal and monetary policies can be used to influence aggregate demand.
This document provides an introduction to macroeconomics. It discusses the key components and concerns of macroeconomics including inflation, output growth, unemployment, and income distribution. It also covers aggregate demand and supply, the circular flow model, and the roles of households, firms, government and the international sector in the macroeconomy. Government policies aim to achieve price stability, economic growth, full employment, and an equitable distribution of income.
The document summarizes key concepts related to the business cycle and macroeconomics. It defines phases of the business cycle like peaks, recessions, troughs, and recoveries. It also defines related terms like unemployment, inflation, fiscal and monetary policy tools. Charts are included to illustrate the business cycle and measures like the unemployment rate.
The document discusses fiscal policy and the business cycle. It explains that aggregate demand is the total demand for goods and services in an economy. Fiscal policy uses government spending and taxation to influence aggregate demand and output. The government can implement expansionary fiscal policy through tax cuts and spending increases to boost a recession-plagued economy. It can enact contractionary fiscal policy via tax hikes and spending decreases to curb inflation. Automatic stabilizers and the multiplier effect also impact how fiscal policy affects aggregate demand and the business cycle.
aggregate demand and aggregate supply for 2nd semester for BBAginish9841502661
The document discusses aggregate demand and aggregate supply. It defines aggregate demand as being underpinned by consumers, investors, government and foreigners. Aggregate supply reflects a positive relationship between price level and output in the short run due to price-cost dynamics. In the long run, aggregate supply is vertical as output is determined by fixed resources and technology. Macroeconomic equilibrium occurs where aggregate demand and supply intersect.
1. This chapter discusses fiscal policy as a tool for stabilizing the economy through manipulating government spending and taxes.
2. It explores discretionary and automatic fiscal adjustments using the AD-AS model and covers problems like recognition lags that complicate fiscal policy effectiveness.
3. Evaluating fiscal policy involves examining standardized budgets that adjust for cyclical factors to determine if policy is expansionary or contractionary.
The business cycle refers to the periodic but irregular up and down movements in economic activity, as measured by real GDP. Business cycles involve alternating periods of expansion (boom) and contraction (recession or depression). Recent cycles have become less severe, with expansions lasting longer and contractions shorter on average. The four main phases of the business cycle are recession, depression, recovery, and boom. Leading economic indicators can provide insight into where the economy may be in the business cycle around 12-15 months in the future.
The document discusses macroeconomic policies used by governments to influence aggregate demand and supply. It explains that fiscal policy involves varying public expenditure and taxation to manage demand, while monetary policy changes interest rates and the money supply. Expansionary policies boost demand during recessions by cutting taxes or lowering interest rates. Contractionary policies reduce demand to curb inflation by raising taxes or interest rates. The document also discusses supply-side policies aimed at boosting productivity through incentives, education, deregulation, and other measures.
The document discusses inflation and deflation. It defines inflation as a general rise in prices over time which reduces purchasing power. The document outlines different types of inflation including wage, cost-push, pricing power, and sectoral inflation. It also discusses causes of inflation from both demand and supply sides. Deflation is defined as a general decline in prices over time. The document notes deflation can be caused by a reduction in the money supply, increased demand for money, increased supply of goods, or reduced demand for goods. Measures to control inflation include increasing production and controlling money supply, while deflation generally occurs when the supply of goods rises faster than the supply of money.
An Individual project given in order to complete the module named Macro Economics which expresses analysis of the trends of inflation rates of Sri Lanka during recent years.
Inflation in Sri Lanka has been volatile over the past decade. It peaked at 22.6% in 2008 due to high commodity prices and money supply growth, but declined to 3.56% in 2009 as monetary policy tightened and prices fell. Inflation then gradually increased until 2012, and decreased to 6.94% in 2013. Maintaining price stability is a key objective of Sri Lanka's central bank, as high and unpredictable inflation can negatively impact the economy by redistributing wealth, lowering real incomes, and increasing borrowing costs. The document discusses inflation measurement, trends, and causes in Sri Lanka from 2008 to the present.
Sri Lanka has been severely impacted by COVID-19 both economically and socially. The pandemic has caused the economy to contract significantly in 2020 as key industries like tourism, exports and construction were brought to a standstill. It has also weakened the government's already fragile fiscal position. Socially, COVID-19 has created widespread fear and psychosis, disrupted education and social interaction, and generated new social problems like increased domestic violence during lockdowns. The long term impacts on poverty levels and inequality are still uncertain.
The document discusses the relationship between inflation and unemployment as depicted by the Phillips curve. It explains that demand-pull inflation is caused by increases in aggregate demand, while cost-push inflation stems from increases in costs of production. The Phillips curve shows an inverse relationship between inflation and unemployment in the short run, but this relationship breaks down in the long run as inflation expectations rise. The natural rate of unemployment is the rate at which inflation remains stable in the long run.
Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve stability without inflation or deflation. The budget estimates revenues and expenditures and is an anti-inflation tool to sustain growth. Revenues come from taxes, fees, loans, etc. and are spent on productive items like infrastructure or non-productive like defense. Fiscal policy can be neutral, expansionary, or contractionary depending on if spending equals, exceeds, or is less than revenues. The objectives are equal wealth distribution, savings, price stability, and economic stability. Limitations include inflexibility, statistics, and decision delays. Islam advocates equal distribution, zakat, and limiting spending imbalances.
Deflation refers to a sustained reduction in the overall price level, where the inflation rate falls below zero percent and prices continue to decrease. This occurs when aggregate demand in the economy declines significantly. While a one-time price decrease is not a problem, sustained deflation can lead to a deflationary spiral as consumers delay purchases in expectation of even lower prices, further reducing demand and economic activity. Central banks aim to prevent deflation through monetary policies that increase the money supply, such as lowering interest rates, in order to stimulate demand. According to the passage, India's current low inflation rate is considered disinflation rather than deflation, as prices have not started falling continuously and the economy remains robust with around 6.5%
The document provides an overview of macroeconomic policies and concepts including:
1) It discusses the business cycle and macroeconomic equilibrium and how disturbances can cause instability.
2) Keynes argued that government intervention is necessary to address inherent instability in free markets. Fiscal and monetary policies can be used to stimulate aggregate demand.
3) Supply-side policies aim to shift aggregate supply curves by incentivizing production. Both demand and supply factors influence macroeconomic outcomes like growth, unemployment and inflation.
This document discusses inflation in India, including its causes and effects. It provides definitions of inflation and deflation, and shows India's inflation rates from 1950-2011. Inflation is problematic as it redistributes wealth and income in unequal ways. The main causes of inflation in India are an increase in the money supply, higher disposable income, deficit financing, agricultural price policies, and inadequate industrial growth. Controlling inflation requires focusing on its underlying drivers, such as reducing demand if demand-pull inflation is the issue. Recommended measures include fiscal consolidation, prioritizing infrastructure to support growth, and ensuring food supply stability.
Inflation refers to a general rise in prices and fall in the purchasing value of money. There are different types of inflation including demand-pull inflation, cost-push inflation, and pricing power inflation. Demand-pull inflation occurs when demand grows faster than supply, cost-push inflation is caused by increases in the costs of important goods, and pricing power inflation results from businesses increasing prices to boost profits. High inflation hurts consumers and businesses, and poses a threat to the Indian economy by slowing growth and worsening poverty. While India has experienced high food inflation in recent years, the government and RBI are taking steps to bring inflation back down to acceptable levels.
"Keynesians in the White House" Economics Case studyNikhil Gupta
This case study is a part of cirriculum of Macro economics. This Presentation will give the idea of John Maynard Keynes General Theory which is to use the Fiscal Policy to control the Aggregate Demand of the Economy. The case deals about President Kennedy's proposal of Tax Cuts.
The document outlines several key objectives of macroeconomic policies: to maximize national income and economic growth to raise living standards, achieve sustainability through growth without undue burdens, maintain full employment so those willing and able to work can find jobs, ensure price stability through low-moderate inflation rather than zero inflation, balance international payments through equivalent exports and imports, and increase productivity through greater output per unit of labor or inputs.
This document discusses inflation, defining it as a persistent increase in the general price level or decline in the real value of money. It categorizes inflation as either price inflation or money inflation and discusses various causes of inflation including increases in money supply, deficit financing, agricultural issues, and inadequate supply growth. It also covers measuring inflation using indexes like WPI and CPI, as well as the effects of inflation on different groups such as consumers, producers, debtors, creditors, wage earners and fixed income groups.
This document summarizes the history and approaches to fiscal policy, including:
- 1850s-1950s emphasized 'sound finance' and balanced budgets
- 1950s-1970s saw the rise of Keynesian demand management using deficits
- 1980s-2008 returned to balanced budgets and using fiscal policy for supply incentives
- 2008 crisis led to increased spending and deficits before austerity reduced deficits
It discusses arguments around automatic stabilizers, supply-side vs demand-side tools, and trade-offs between equity and efficiency.
Aggregate Demand, Aggregate Supply, and InflationNoel Buensuceso
This document discusses aggregate demand, aggregate supply, and inflation. It defines aggregate demand and supply as the total demand and supply in the economy. The aggregate demand curve shows a negative relationship between output and price level, while the aggregate supply curve shows the relationship between output and price level. The equilibrium price level is where the aggregate demand and supply curves intersect. Inflation is defined as a sustained increase in the overall price level over time and is caused by an expansion of the money supply. There are two types of inflation: demand-pull inflation initiated by increased aggregate demand and cost-push inflation caused by increased costs. Cost shocks can lead to stagflation, where output falls as prices rise. Inflationary expectations
This document discusses macroeconomic concepts including GDP, business cycles, economic growth, and technological progress. It explains that GDP measures the value of final goods and services produced, and economists use GDP and real GDP per capita to analyze economic performance and standards of living. The business cycle consists of expansion, peak, contraction and trough phases influenced by investment, interest rates, expectations and external shocks. Economic growth results from capital deepening, savings, population changes, government policies, and technological advances driven by factors like research, innovation, and education.
The document discusses inflation and deflation. It defines inflation as a general rise in prices over time which reduces purchasing power. The document outlines different types of inflation including wage, cost-push, pricing power, and sectoral inflation. It also discusses causes of inflation from both demand and supply sides. Deflation is defined as a general decline in prices over time. The document notes deflation can be caused by a reduction in the money supply, increased demand for money, increased supply of goods, or reduced demand for goods. Measures to control inflation include increasing production and controlling money supply, while deflation generally occurs when the supply of goods rises faster than the supply of money.
An Individual project given in order to complete the module named Macro Economics which expresses analysis of the trends of inflation rates of Sri Lanka during recent years.
Inflation in Sri Lanka has been volatile over the past decade. It peaked at 22.6% in 2008 due to high commodity prices and money supply growth, but declined to 3.56% in 2009 as monetary policy tightened and prices fell. Inflation then gradually increased until 2012, and decreased to 6.94% in 2013. Maintaining price stability is a key objective of Sri Lanka's central bank, as high and unpredictable inflation can negatively impact the economy by redistributing wealth, lowering real incomes, and increasing borrowing costs. The document discusses inflation measurement, trends, and causes in Sri Lanka from 2008 to the present.
Sri Lanka has been severely impacted by COVID-19 both economically and socially. The pandemic has caused the economy to contract significantly in 2020 as key industries like tourism, exports and construction were brought to a standstill. It has also weakened the government's already fragile fiscal position. Socially, COVID-19 has created widespread fear and psychosis, disrupted education and social interaction, and generated new social problems like increased domestic violence during lockdowns. The long term impacts on poverty levels and inequality are still uncertain.
The document discusses the relationship between inflation and unemployment as depicted by the Phillips curve. It explains that demand-pull inflation is caused by increases in aggregate demand, while cost-push inflation stems from increases in costs of production. The Phillips curve shows an inverse relationship between inflation and unemployment in the short run, but this relationship breaks down in the long run as inflation expectations rise. The natural rate of unemployment is the rate at which inflation remains stable in the long run.
Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve stability without inflation or deflation. The budget estimates revenues and expenditures and is an anti-inflation tool to sustain growth. Revenues come from taxes, fees, loans, etc. and are spent on productive items like infrastructure or non-productive like defense. Fiscal policy can be neutral, expansionary, or contractionary depending on if spending equals, exceeds, or is less than revenues. The objectives are equal wealth distribution, savings, price stability, and economic stability. Limitations include inflexibility, statistics, and decision delays. Islam advocates equal distribution, zakat, and limiting spending imbalances.
Deflation refers to a sustained reduction in the overall price level, where the inflation rate falls below zero percent and prices continue to decrease. This occurs when aggregate demand in the economy declines significantly. While a one-time price decrease is not a problem, sustained deflation can lead to a deflationary spiral as consumers delay purchases in expectation of even lower prices, further reducing demand and economic activity. Central banks aim to prevent deflation through monetary policies that increase the money supply, such as lowering interest rates, in order to stimulate demand. According to the passage, India's current low inflation rate is considered disinflation rather than deflation, as prices have not started falling continuously and the economy remains robust with around 6.5%
The document provides an overview of macroeconomic policies and concepts including:
1) It discusses the business cycle and macroeconomic equilibrium and how disturbances can cause instability.
2) Keynes argued that government intervention is necessary to address inherent instability in free markets. Fiscal and monetary policies can be used to stimulate aggregate demand.
3) Supply-side policies aim to shift aggregate supply curves by incentivizing production. Both demand and supply factors influence macroeconomic outcomes like growth, unemployment and inflation.
This document discusses inflation in India, including its causes and effects. It provides definitions of inflation and deflation, and shows India's inflation rates from 1950-2011. Inflation is problematic as it redistributes wealth and income in unequal ways. The main causes of inflation in India are an increase in the money supply, higher disposable income, deficit financing, agricultural price policies, and inadequate industrial growth. Controlling inflation requires focusing on its underlying drivers, such as reducing demand if demand-pull inflation is the issue. Recommended measures include fiscal consolidation, prioritizing infrastructure to support growth, and ensuring food supply stability.
Inflation refers to a general rise in prices and fall in the purchasing value of money. There are different types of inflation including demand-pull inflation, cost-push inflation, and pricing power inflation. Demand-pull inflation occurs when demand grows faster than supply, cost-push inflation is caused by increases in the costs of important goods, and pricing power inflation results from businesses increasing prices to boost profits. High inflation hurts consumers and businesses, and poses a threat to the Indian economy by slowing growth and worsening poverty. While India has experienced high food inflation in recent years, the government and RBI are taking steps to bring inflation back down to acceptable levels.
"Keynesians in the White House" Economics Case studyNikhil Gupta
This case study is a part of cirriculum of Macro economics. This Presentation will give the idea of John Maynard Keynes General Theory which is to use the Fiscal Policy to control the Aggregate Demand of the Economy. The case deals about President Kennedy's proposal of Tax Cuts.
The document outlines several key objectives of macroeconomic policies: to maximize national income and economic growth to raise living standards, achieve sustainability through growth without undue burdens, maintain full employment so those willing and able to work can find jobs, ensure price stability through low-moderate inflation rather than zero inflation, balance international payments through equivalent exports and imports, and increase productivity through greater output per unit of labor or inputs.
This document discusses inflation, defining it as a persistent increase in the general price level or decline in the real value of money. It categorizes inflation as either price inflation or money inflation and discusses various causes of inflation including increases in money supply, deficit financing, agricultural issues, and inadequate supply growth. It also covers measuring inflation using indexes like WPI and CPI, as well as the effects of inflation on different groups such as consumers, producers, debtors, creditors, wage earners and fixed income groups.
This document summarizes the history and approaches to fiscal policy, including:
- 1850s-1950s emphasized 'sound finance' and balanced budgets
- 1950s-1970s saw the rise of Keynesian demand management using deficits
- 1980s-2008 returned to balanced budgets and using fiscal policy for supply incentives
- 2008 crisis led to increased spending and deficits before austerity reduced deficits
It discusses arguments around automatic stabilizers, supply-side vs demand-side tools, and trade-offs between equity and efficiency.
Aggregate Demand, Aggregate Supply, and InflationNoel Buensuceso
This document discusses aggregate demand, aggregate supply, and inflation. It defines aggregate demand and supply as the total demand and supply in the economy. The aggregate demand curve shows a negative relationship between output and price level, while the aggregate supply curve shows the relationship between output and price level. The equilibrium price level is where the aggregate demand and supply curves intersect. Inflation is defined as a sustained increase in the overall price level over time and is caused by an expansion of the money supply. There are two types of inflation: demand-pull inflation initiated by increased aggregate demand and cost-push inflation caused by increased costs. Cost shocks can lead to stagflation, where output falls as prices rise. Inflationary expectations
This document discusses macroeconomic concepts including GDP, business cycles, economic growth, and technological progress. It explains that GDP measures the value of final goods and services produced, and economists use GDP and real GDP per capita to analyze economic performance and standards of living. The business cycle consists of expansion, peak, contraction and trough phases influenced by investment, interest rates, expectations and external shocks. Economic growth results from capital deepening, savings, population changes, government policies, and technological advances driven by factors like research, innovation, and education.
This document discusses the future of traditional marketing and how it will change with increased internet and social media usage. Key points include:
- Traditional marketing will need to adapt to changing consumer behaviors and the rise of internet/social media channels.
- Internet usage and online commerce are growing rapidly worldwide and will continue to do so, becoming a central part of people's lives.
- Brands need to establish an online presence through websites, social media pages, blogs, and video channels to effectively engage with customers online.
- Social networks like Facebook provide opportunities for brands to interact directly with customers, gather feedback, and build brand loyalty in new ways.
The document discusses the impact of class size on student achievement. It notes that recent budget cuts have led to increased class sizes. Research shows that smaller class sizes (under 20 students) are associated with higher test scores and student achievement. Smaller classes can reduce noise and behavior problems while allowing teachers to give each student more individual attention. While budgets are tight, alternatives like reallocating staff may allow schools to maintain the benefits of smaller class sizes.
Copy Responsible: copyright relevance for South African teachers and librariansKerryn Mckay
A presentation, licensed under Creative Commons BY-SA 2.5 South Africa which provides a context for the IDRC-funded ACA2K project, its findings and relevance for South African librarians and teachers. The presentation is compiled by Caroline Ncube, senior lecturer within the University of Cape Town's IP Law & Policy Research Unit
Galaksi terdiri dari bintang, gas, dan debu yang terikat oleh gravitasi. Galaksi terbagi menjadi inti, piringan, dan lengan spiral. Tata Surya terdiri dari Matahari dan objek lain yang terikat oleh gravitasinya seperti delapan planet dan lima planet kerdil. Planet-planet terbagi menjadi empat planet dalam dan empat planet luar berdasarkan jaraknya dari Matahari.
Rendicion de Cuentas Municipalidad Distrital de Chancay 2007-2010MuniChancay
Este documento presenta un resumen de los proyectos de inversión realizados por la Municipalidad Distrital de Chancay entre 2007 y 2010. Los proyectos incluyeron la construcción y mejora de sistemas de agua potable, alcantarillado, electrificación, campos deportivos, aulas escolares y vías en varias zonas y centros poblados del distrito como Torre Blanca, Quepepampa, Pampa el Inca, Aldea Campesina, 04 de Junio, Chancayllo, Peralvillo, Puerto Chancay, Juan Velasco,
Our minds develop through an intricate process beginning at conception. As the fetus develops in the womb, neural connections form that will determine how our brains are wired. After birth, experiences and environments further shape how our minds work through neural plasticity well into adulthood.
Advance et proofofconceptpresentation-2OliviaHenley
This document outlines a presentation for a new e-training platform called Artes181. It discusses the vision to transform sales training from physical classrooms to an online multidimensional experience. This will provide benefits like cost savings, flexibility and global access. The platform will use multimedia like video and social features to replicate the classroom experience. It will also include tools for mentoring, assessments and building an online community around sales skills. A phased rollout of modules is planned starting in 2011 to cover all aspects of sales and eventually include accredited programs.
Ms. Ayala teaches Spanish 2, 3, 4, and 5 at John Jay High School. Her contact information and tutoring hours are provided. She teaches Spanish classes during periods 1 through 4 and 6, has lunch during period 5, holds conferences in period 7, and teaches Spanish 4 AP/5AP in period 8. Her goals for the year are high student achievement, increasing student involvement, and preparing students for life after graduation.
This document provides discussion questions and topics about changes in American history over the last 150 years. It asks students to consider how aspects of government, economy, technology, democracy, work, family, beliefs, and environment have changed or remained the same. Students are prompted to think about what causes change, including the roles of technology, ideas, and individuals versus societal forces. The closing question asks students to define culture and identify how cultures change.
The document discusses the concept of "Super Apps" for BlackBerry that provide seamless integration with the device's core functionality and services. Some key aspects of Super Apps highlighted include always-on experiences, proactive notifications, background processing, and contextual integration with features like the inbox, calendar, contacts and location services. Several examples are provided of potential Super Apps for activities like social media, ecommerce, collaboration, law enforcement, and healthcare. The overall vision presented is for apps that transform how users work and live by empowering greater connectivity and engagement.
The document contains architectural plans, elevations, and section drawings for single, triplex, and sixplex housing unit configurations of an "all-south-facing" design. The drawings show dimensions and details for the floor plans, elevations, wall and roof sections, and include notes on the building materials used like engineered wood siding, fiberglass shingles, plywood, insulation, and mdf panels.
This document defines key economic terms and concepts related to market failure, macroeconomics, unemployment, inflation, and the Phillips curve. It provides real world examples to illustrate positive and negative externalities, different types of GDP, aggregate demand and supply components, unemployment rates, and causes of inflation. Diagrams are included to explain the inflationary and deflationary gaps, multiplier effect, accelerator, and short-run versus long-run Phillips curve. In summary, the document outlines essential microeconomics and macroeconomics terminology.
In these slides we discuss about Economic Growth & Business Cycle like GDP, Real GDP, Ways of measuring GDP, GNP, Aggregate Demand and Supply, Stages and Shape of Business Cycle, Growth / Expansion, Peak / Boom, Recession, Depression
1) Macroeconomics concepts include GDP components like consumption (C), investment (I), government spending (G), and net exports (X-M) that determine the business cycle of expansion and recession.
2) The macroeconomic goals of governments are growth, income distribution, employment, external stability, and price stability. Inflation and deflation impact prices, while unemployment types include cyclical and underemployment.
3) Fiscal policy tools like direct and indirect taxation, and government spending, influence aggregate demand and the macroeconomy. Cost-push and demand-pull factors can cause inflation by shifting the aggregate supply or demand curves.
This document discusses fiscal policy and how it is used in Malaysia to control inflation. It explains that fiscal policy involves adjusting government spending and tax rates to influence the economy. The government of Malaysia implements contractionary fiscal policy to reduce inflation by decreasing government purchases, increasing taxes, and decreasing transfer payments. This lowers aggregate demand and production in the economy, reducing inflationary pressures.
This document provides an overview of key concepts in macroeconomics. It defines macroeconomics as dealing with the performance and structure of an economy as a whole, rather than individual markets. It discusses important macroeconomic variables like output, income, unemployment, inflation, aggregate demand and supply. It also covers concepts like the consumption function, national income, GDP, GNP, economic growth, and the limitations of macroeconomic analysis.
Economic growth involves an increase in the volume of goods and services produced over time, measured by the annual rate of change in real GDP. Unemployment refers to individuals who want to work but cannot find a job, and is affected by factors like the level of economic growth, structural changes in the economy, and technological advances. Governments aim to sustain high economic growth through fiscal and monetary policies to increase aggregate demand, as well as microeconomic reforms to boost productivity and aggregate supply.
Fiscal policy uses government spending, taxes, and borrowing to influence macroeconomic variables. Expansionary fiscal policy, such as tax cuts or increased spending, increases aggregate demand to boost a recession-plagued economy. Contractionary fiscal policy, like tax increases or spending cuts, decreases aggregate demand to curb inflation. Automatic stabilizers like unemployment insurance and the progressive tax system counter cyclical changes automatically. Discretionary policy actively manipulates fiscal tools but faces time lags and crowding out effects.
Taxes, Deficit Spending, And The GovernmentJessica Clark
The document discusses several topics related to taxes, government spending, deficits, and macroeconomics. It defines key terms like the payroll tax system, tax brackets, government spending priorities, deficit spending, and how deficits can redistribute wealth. It also explains aggregate supply and demand curves and how fiscal and monetary policy can be used to address economic instability.
This document provides an overview of key economic concepts related to measuring total production, GDP, economic growth, inflation, unemployment, and the sources of short-run economic growth. It defines GDP as the market value of all final goods and services produced in a country in a year. The components of GDP are outlined as personal consumption, private investment, government spending, and net exports. Methods for measuring GDP, real GDP, inflation, and unemployment are also summarized. The sources of short-run economic growth are described as aggregate expenditure, the components of which are consumption, investment, government purchases, and net exports.
The major function of fiscal policy is to stabilize the economy through government manipulation of taxation and expenditure levels. Fiscal policy aims to achieve long-term economic growth, full employment, and low inflation. The government utilizes taxes and spending as tools to influence aggregate demand and achieve social and economic policy objectives. The success of fiscal policy relies on timely and effective use of these tools.
Class Lecture Notes Measuring the MacroeconomyProfessor Shari Lyman,.docxmccormicknadine86
Class Lecture Notes Measuring the MacroeconomyProfessor Shari Lyman, Ph.D.
GDP Measures
GDP is Gross Domestic Product
GDP is the value of all final goods and services produced within a country’s borders by its own citizens or foreign citizens in a given time period.
GNP is Gross National Product
GNP is the value of all final goods and services produced by a country’s citizens within the country’s borders or in foreign lands in a given time period. http://www.diffen.com/difference/GDP_vs_GNP
Intermediate goods are used to produce other goods. For example, when Pizza Hut buys cheese to produce pizzas, the cheese is an intermediate good.
Final goods are purchased by the end user. When the Lyman household purchases cheese, the cheese is a final good.
GDP is represented by the variable Y in macroeconomic calculations.
The formula for GDP is:
Y=Consumption(C)+Investment(I)+Government Expenditures(G)+Net Exports(X-M).
Consumption (durable and non-durable goods and services for individual household consumption)
Investment (Consumption of new physical capital and new housing such as factories, machines, tools, transportation systems, new houses, etc.) Investment is purchased using financial capital instruments.
Government expenditures (all Federal, State, and Local government purchases from paper clips to aircraft carriers).
Net Exports (Trade Balance=Exports-Imports)
Macroeconomic Measures introduces the student to 3 different methods of measuring GDP:
1.the incomes approach (simplified circular flow model-resource flow approach)
2.the expenditures approach (simplified circular flow model (D) money flow approach)
3.the output approach (simplified circular flow model (S) product flow approach).
Incomes Approach (Input/resource approach)
GDP (also known as national income which is indicated by Y) is equal to the inputs used in the production process. The inputs include:
land in the form of rent
labor in the form of wages
capital in the form of interest
entrepreneurship in the form of profit.
Y = rent + wages + interest + profit.
Expenditures Approach (Demand side approach)
GDP (also known as aggregate demand (AD) which is indicated by Y) is equal to the total output demanded in the economy. The outputs include:
consumption
investment
government expenditures
net exports
Y=Consumption(C)+Investment(I)+Government Expenditures(G)+Net Exports(X-M)
Output Approach (Supply side approach)
GDP (also known as national output which is indicated by Y) is equal to the outputs supplied to the economy. The outputs include:
household goods (durable and nondurable goods and services)
investment goods (new housing and capital)
government (durable and nondurable goods and services)
net exports (goods for export minus goods imported)
Y = Household (C) + Firm and HH (I) + (G) + Net Exports (X-M)
The Keynesian Consumption (Spending) Multiplier
The Keynesian Consumption Multiplier is based on the assumption that for each additional dollar a household receives some ...
This PPT Aims to Provide knowledge and Understanding about the Concept of Inflation, Causes of Inflation, How to reduce inflation, Types of Inflation and So on.
Fiscal policy refers to a government's spending and tax policies. It aims to stabilize economic growth and avoid booms and busts. Fiscal policy tools include government spending, taxation, and borrowing. Governments use these tools to influence aggregate demand and influence goals like economic growth, inflation, and unemployment. Fiscal policy plays a crucial role in mobilizing resources, boosting employment and development, and stabilizing an economy.
Fiscal policy involves manipulating government spending and taxation to influence the level of aggregate demand and economic activity. It can be used to achieve macroeconomic objectives like reducing unemployment and influencing inflation, as well as non-economic goals. Key tools of fiscal policy include altering tax rates, changing government spending, and borrowing to finance deficits. Maintaining prudent fiscal deficits and public debt levels is important for macroeconomic and financial stability.
The document provides information about the federal budget process and fiscal policy in the United States. It discusses budget deficits and debt, the main sources of government revenue and expenditures, different types of taxes, and key economic indicators.
The document provides information about the federal budget process and fiscal policy in the United States. It discusses key topics such as government spending, revenues, taxes, deficits, and debt. It also covers economic indicators and concepts including GDP, unemployment, inflation, and the business cycle.
The document discusses various macroeconomic concepts related to fiscal and monetary policy such as:
- Supply side policies can shift the LRAS curve to increase potential output without raising inflation.
- Fiscal policy tools like government spending, taxation, and transfers can be used for demand management.
- Monetary policy tools like interest rates can influence money supply and demand to impact output and inflation.
- Crowding out refers to how increased government spending and borrowing can reduce private investment by raising interest rates.
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7 Economic Policy Challenging Incrementalism
Incremental and Nonincremental Policymaking
Traditionally, fiscal and monetary policies were made incrementally; that is, decision makers concentrated their attention on modest changes—increases or decreases—in existing taxing, spending, and deficit levels, as well as the money supply and interest rates. Incrementalism was especially pervasive in annual federal budget making. The president and Congress did not reconsider the value of all existing programs each year, or pay much attention to previously established expenditure levels. Rather last year’s expenditures were considered as a base of spending for each program, attractive consideration of the budget proposals focused on new items or increases over last year’s base.
But crises often force policymakers to abandon incrementalism and reach out in non-incremental directions. In economic policy, the president and Congress and the Fed are pressured to “do something” in the face of a perceived economic crisis, even if there is little consensus on what should be done, or even whether there is anything the federal government can do to resolve the crisis. As we shall see later in this chapter, the recession that began in 2008 caused policymakers to search for new policies and make dramatic changes in spending and deficit levels and to undertake unprecedented measures to prevent the collapse of financial markets and avoid a deep recession.
Fiscal and Monetary Policy
Economic policy is exercised primarily through the federal government’s fiscal policies—decisions about taxing, spending, and deficit levels—and its monetary policies—decisions about the money supply and interest rates.
Fiscal policy is made in the annual preparation of the federal budget by the president and the Office of Management and Budget, and subsequently considered by Congress in its annual appropriations bills and revisions of the tax laws. These decisions determine overall federal spending levels, as well as spending priorities among federal programs. Together with tax policy decisions (see Chapter 8), these spending decisions determine the size of the federal government’s annual deficits or surpluses.
Monetary policy is the principal responsibility of the powerful and independent Federal Reserve Board—“the Fed”—which can expand or contract the money supply through its oversight of the nation’s banking system (see “The Fed at Work” later in this chapter). Congress established the Federal Reserve System and its governing Board in 1913 and Congress could, if it wished, reduce its power or even abolish the Fed altogether. But no serious effort has ever been undertaken to do so.
Economic Theories As Policy Guides
The goals of economic policy are widely shared: growth in economic output and standards of living, full and productive employment of the nation’s work force, and stable prices with low inflation. But a variety of economic theories compete for preeminence as ways of achiev.
The document discusses various economic measurements and factors that are used to evaluate the strength of a nation's economy, including Gross Domestic Product (GDP), standard of living, inflation rate, unemployment rate, productivity, and others. It provides examples and charts to illustrate trends in these measurements in the United States over recent decades, finding generally stable inflation, low unemployment, and increasing productivity and GDP.
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A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
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A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
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2. Circular Flow of Income Circular Flow of Income is a simplified model of the economy that shows the flow of money through the economy
3. GDP Gross Domestic Policy is the totally money value of all final goods and services produced in an economy in one year
4. GNP Gross National Product is the total money value of all final goods and services produced in an economy in one year, plus net property income from abroad (interest, rent, dividends and profit)
5. Nominal/Real GDP Nominal Gross Domestic Product is GDP, is not adjusted for inflation Real Gross Domestic Product GDP, adjusted for inflation
6. HDI, Business Cycle Human Development Indexis a composite index that brings together measurements of life expectance at birth, literacy rate, school enrollment rate, and GDP per capita to measure relative development Business Cycle shows fluctuations in the level of economic activity in an economy over time and suggests that the changes are cyclical. There are four stages: depression, recovery, boom, and recession
7. AD Aggregate Demand is the totally spending in an economy consisting of consumption, investment, government expenditures and net exports Consumption is spending by households on consumer goods and services over a period of time Investment is the addition to the capital stock of the economy in the form of factories, offices, machinery and equipment which is used to produce goods and services
8. Gaps Inflationary Gap is the situation here total spending (AD) is greater than the full employment level of output, thus causing inflation Deflationary Gap is the situation where total spending (AD) is less than the full employment level of output, thus causing unemployment
9. Demand-Side Policies Demand – Side Policies are any government policies designed to influence AD in the economy, thus affecting the average price level and real national output Fiscal Policy is a policy using changes in government spending and/or direct taxation to achieve economic objectives Monetary Policy is a policy using changes in the money supply or interest rates to achieve economic objectives
10. AS Aggregate supply is the totally amount of domestic goods and services supplied by businesses and the government, including both consumer goods and capital goods Short – Run Aggregate Supply is AS that varies with the level of demand for good and services and that is shifted by changes on the costs of factors of production Long – Run Aggregate Supply is AS that is dependent on the resources in the economy and that can only be increased by improvements in the quantity and/or quality of factors of production
11. Supply-Side Policies Supply-side Policies are government policies designed to shift the LRAS curve to the right, thus increasing potential output in the economy The Multiplier is the ratio of change in the level of national income to an initial change in one or more of the injections into the circular flow of income The Accelerator is the relationship between the level of induced investment and the rate of change of national income
12. Crowding Out Crowding Out is the situation where the government spends more (government expenditure) that it receives in revenue (mainly taxation), and needs to borrow money, forcing up interest rates and “crowding out” private investment and private consumption.
13. Unemployment Pt.1 Unemployment is a situation that exists when people who are willing and able to work cannot get a job Full unemployment exists when the number of jobs available in a economy is equal to or greater than the number of people actively seeking work. Underemployment exists when workers are carrying out jobs for which they are over- qualified, that is they are not using their full skills and abilities or when workers are employed part-time, even though they are available for full-time employment or when workers in a planned economy are undertaking jobs that would not exists in a free market
14. Unemployment Pt. 2 The Unemployment Rate is the number of unemployed workers expressed as a percentage for the totally workforce Structural Unemployment is unemployment that exists when in the long term the pattern of demand and productions methods change and there is a permanent fall in the demand for a particular type of labor. There is a mismatch between skills and the jobs available
15. Unemployment Pt. 3 Frictional (Search) Unemployment is the unemployment that exists when people have left a job and are in process of searching for another job Seasonal Unemployment is unemployment that exists when people are out of work because their usual job is out of season Demand Deficient or Cyclical Unemployment is unemployment that exists when there is insufficient AD in the economy and real wages do not fall to compensate for this
16. Unemployment Pt. 4 Real Wage Unemployment is unemployment that exists when real wages (wages adjusted for inflation) in the economy get pushed up above their equilibrium, either by the government or by trade unions
17. Inflation Inflation is a sustained increase in the general (or average) level of prices and a fall in value of the money Demand- Pull Inflation is inflations that is caused by increasing AD in an economy that shifts the AD curve to the right Cost- Push Inflation is inflation that is caused by an increase in the costs of production in an economy that shifts SRAS curve to the left
19. Tax Direct Taxation is taxation imposed on people’s income or wealth, and on firms and profits Indirect taxation is a tax on expenditure. It is added to the selling price of a good or service Proportional Tax is when as income rises, the average proportion pain in tax stays constant Progressive Tax is when as income rises, the average rate of tax increases Regressive Tax is when as income rises, the average rate of income tax falls
20. Budget Position Budget Deficit is when the central government is spending more than it receives in tax revenue Budget Surplus is when the central government spending is less than its tax revenue
21. Economic Goals Economic Growth is increasing production of goods and services High Employment (Low Employment) are the resources being used in production Price Stability (low inflation) is when prices are stable and not rising rapidly or decreasing
22. Traps Unemployment Trap occurs when people are worse off by working than they are when they are receiving benefits. Because they lose benefits when they start work and are taxed on their income, their total income falls when they start work. This created an incentive not to work Poverty Trap occurs when people are worse off when they earn more. This is because some benefits are withdrawn
23. Fiscal in-depth Reflationary Fiscal Policies include lower taxes and more Government spending. These increase AD Deflationary Fiscal Policies include higher taxes and less Government spending. These reduce AD