Developing A Specialized Not For Profit Advocacy Group

Developing A Specialized Not For Profit Advocacy Group
Our solution is to develop a specialized not–for profit advocacy group, which focuses on policy
change and bridging the gap between local government, non–profits, and the federal government.
Furthermore, we will fill the void within these entities with additional resources. Our group will be
composed of a full–time paid staff, a board of specialized individuals (ex. Lawyers, professors,
government officials), and a network of community volunteers. Our staff will handle the day–to–day
operations necessary for an efficiently run business, while our board of specialized individuals will
donate their time/services for tasks outside the capabilities of staff members (on an as needed basis).
The group of community volunteers will be a tremendous asset to the advocacy group, by providing
services to those facing hardship from unemployment. Regardless of a person's position, paid or
unpaid, each member of our advocacy group will work as partners of the organization. It will
function as a democratic body, as opposed to the bureaucratic structure mostly seen in government
and nonprofit agencies. Our advocacy group focuses on 3 aspects to aid in reducing unemployment–
1) Implantation of resources for the general unemployment population; 2) Acting as "the
middleman" between government and the private sector services; 3) Policy Reform. Newark has
many nonprofits that assist with career services, job matching, and training, however they are
specialized for particular groups of people. The
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Macroeconomic Policies And Regulate The Healthy Operation...
The government plays an important role in the national economy. Through the formulation of
macroeconomic policies and regulate the healthy operation of the national economy.
There are four main economic theory tells us government to achieve macroeconomic objectives:
price stability, full employment, sustainable and balanced economic growth and balance of
international payments. In addition, inflation, unemployment and economic growth are the big
macroeconomic issues of our time. In this essay we focus on inflation and unemployment.
Unemployment occurs when a person who is actively searching for employment is unable to find
work. Unemployment is often used as a measure of the health of the economy. The most frequently
cited measure of unemployment is the unemployment rate. This is the number of unemployed
persons divided by the number of people in the labor force (Unemployment, INVESTOPEDIA,
2010)1. number of unemployed Unemployment rate = ––––––––––– * 100 labor force There are
three main types of unemployment: cyclical unemployment, frictional unemployment and structural
unemployment. Cyclical or demand–deficient unemployment occurs when aggregate desired
expenditures in the economy are insufficient to purchase the output that would be supplied when the
economy

Relationship Between Unemployment And Inflation
The relationship between unemployment and inflation has been the subject of heated debate,
stimulate academic divide between macroeconomics because the relationship is difficult to explain.
Rational expectations have been proposed by the new classical school of thought, there is not even a
short–term trade–off between inflation and unemployment expected. Only a compromise when
inflation is unanticipated. We think there is a compromise between the two, even in the short term,
regardless of the fact that inflation is expected or not, and take the new Keynesian position on the
issue.
The relationship between unemployment and inflation is usually modeled within Philips Curve.
Philips implied its empirical evidence that there was a stable relationship between inflation and
unemployment proposed decision was a combination of the two menu choices, where they could
choose any point along the curve between Philips points A and B where A is low inflation but high
unemployment and B had low unemployment rates but high inflation.
Many economists remain skeptical about the PC since, in classical microeconomic analysis,
employment (and unemployment) levels depends on the real wage, not nominal wages as implied by
the original PC .dropoff window This led Friedman to come with expectations increased PC. "By
integrating a theory of the formation of expectations in the behavior of workers model, the model
allowed workers to take into account expected inflation." The model assumes the use of

The Phillips Curve Essay
The Phillips Curve
Economists agree that unemployment and inflation are two of the major macroeconomic problems
of the twentieth century. If a relationship between the two existed then this would be a major break
through for the macro management of the economy. Phillips' work was empirical – started with
evidence and worked towards a theory. The causation for the Phillips theory was that the level of
unemployment caused the rate of change in money wages to be what it was.
'What economic theory lies behind this?'
As unemployment decreases the available pull of labour goes down. This means that resources
become increasingly scarce and workers can push for higher wage rates. Or as unemployment
decreases more people have
more ... Show more content on Helpwriting.net ...
They held that it was the government's duty to achieve the correct level of demand by manipulating
its own spending and tax receipts, or in other words, to have an active fiscal policy. This policy
required the government to spend more than it received if the economy had less than full
employment. As a consequence, aggregate demand would rise through a multiplier effect and
unemployment would fall. 'The inflation controversy – Demand–Pull or Cost–Push?'
Keynesian economists were divided into two camps. Some believed that inflation was caused by too
much demand for goods and services, or excess demand i.e. Demand Pull Inflation. Such
economists were very enthusiastic about the Phillips curve because it seemed to provide strong
evidence for their views. The second camp of Keynesian economists believed that inflation was
caused by cost pressures arising from high wage settlements gained by strong trade unions and from
increases in import prices i.e. Cost Push Inflation. They were doubtful about the usefulness of the
Phillips curve. On the
Nicholas Perry
evidence of the Phillips curve they thought that wage inflation and unemployment could be traded
off against each other, that policy makers could decide to have a bit less unemployment in exchange
for accepting a bit more wage inflation or vice versa. The Phillips curve helped the 'demand pull'
Keynesians in another way as in order to manage the level

Relation Between Inflation Rate and Unemployment
Eurozone unemployment and inflation both rise
01 March 2012 by Daniel Mason
Eurozone unemployment rose to a record high in January, while inflation in the currency bloc has
also continued its upward trend – a combination described by economists as "unpalatable" and a
"double whammy of bad news".
The jobless rate in the 17–member currency bloc was 10.7 per cent in January, up from 10.6 per cent
in December, according to statistics published today by Eurostat. It means that, in January, there
were 16.9 million people out of work in the eurozone. Meanwhile in the European Union as a
whole, unemployment increased from 10 per cent in December to 10.1 per cent in January, leaving
24.3 million people without a job.
Spain continued to ... Show more content on Helpwriting.net ...
A rise in income will create increased purchasing power. Thus, the demand remains high as it
reaches a point where the supply can no longer meet the demand, inflation occurs. However, at the
same time, when unemployment is high, workers are unable to ask for better wages. This means that
prices can fall, since businesses are not having to pay their employees better wages. Therefore, in
many cases, when there is low unemployment, there is high inflation and vice versa. It has been
observed that there was a stable and inverse relationship between rate of inflation and the rate of
unemployment in an economy. In other words, a lower unemployment rate could be had by
tolerating a higher rate of inflation.
However, since the simultaneous occurrence of high inflation and high unemployment in the United
States and other countries during the 1970s, there has been general agreement that this econometric
relationship is unstable. Indeed, the instability has been so great that Lucas and Sargent
characterized it as "econometric failure on a grand scale."(1)
As is known to all, widespread joblessness in Greece and Spain pushed the unemployment rate in
the eurozone to the worst level since 1999. Coupled with the pitched unemployment rate, the
economy has suffered from fluctuation. Take the example of the news released in recent time, which
is concerned with the financial situation in Eurozone. As what we can see in the news report, during
the business

1980s Economy
The onus of this essay is to support it with broad range of data, statistics, economic models and
theory to revive and analyze the real causes which left dramatic effects on the economy by
discussing the major events and effects it had on the general public that turned a once prosperous
economy into turmoil. We shall look at many major factors which triggered the downturn from a
different spectrum such as high levels of unemployment, the cost of living, public spending interest
rates and many more.
Late 1970s and early 1980's (1979–1983) was a turbulent period in the history of United Kingdom's
economy. Britain welcomed their first female prime minister when they were facing major economic
volatility. 80s was the phase when UK was facing cost push inflation like a lot of other countries
around the world. Due to the aftermath effects of 1970s when rising "oil prices costs shifted from $3
per barrel to $12" ... Show more content on Helpwriting.net ...
As we can see from the graph above UK's inflation in 1980 was 18% followed by a steep drop in
1981 of 11.90%, 8.60% in1982 and lastly 4.60% in 1983 resulting in a highly disinflated economy
due to inflation rates sky rocketing which however was dealt severely by the government by
decreasing budget deficit and charging higher taxes by cutting extensively on spending.
The graph above demonstrates the enormous levels of unemployment during the early 1980s which
put over "three million people out of work in 1983". I believe the strong decline of the trade union
power in this phase resulted in deterioration of employment due to tight monetary policy with
critical reasoning such as unions not having enough power to push up the wages and wage demands
not meeting up to the point of

Should Uk Policy Be Concerned About Unemployment
Should UK policy makers be concerned about unemployment persistence and hysteresis given the
increase in the unemployment rate since the start of the recession in 2008? Unemployment is
measured by the International Labour Organisation (ILO) who conduct a Labour Force Survey
(LFS) and through the Claimant Count. The Claimant Count measures those who are claiming Job
Seekers Allowance whilst the LFS is a sample survey which is used for the official figures in the UK
as this allows comparisons internationally. Through these measures, it is then possible to identify the
unemployment rate, which is defined as "the number of unemployed expressed as a percentage of
the labour force". (Sloman 2005 p. 787) Since the 2008 recession, the unemployment rate has
reached a high of 8.5% in the period Sep–Nov 2011; however, the current level is 6.0% for the
period June–Aug 2014. (ONS, 2014). Appendix 1 depicts the fluctuations in the unemployment rate
from 2007 before the recession began to August 2014. This highlights the way in which
unemployment rose and then has remained at a constantly high rate until the UK started to
experience falls in unemployment around the end of 2013. The unemployment rate is "now is at its
lowest level since records began over 40 years ago". (Gov.uk 2014) There are several types of
unemployment such as frictional, structural, demand–deficient, seasonal, technological, real–wage
and the non–accelerating rate of unemployment. The UK economy experiences

[TYPE THE COMPANY NAME]
Economics Assignment
[Type the document subtitle]
1/18/2015
Table of Contents:
Table of Contents: 2
Section 1: Relationship between Unemployment and Inflation 3
Unemployment: 3
Inflation: 3
Phillips curve: 4
SRPC– Short Run Phillips curve: 4
Real Life example of Unemployment in Australia 5
Section 2: Simple model of AD and AS 6
Aggregate demand and Aggregate supply: 6
What is AD or aggregate demand? 6
Consumption Expenditure: 6
Investment Demand: 7
Government Expenditure: 7
Net Exports: 7
Aggregate demand: 7
What is Aggregate Supply? 8
Macroeconomic equilibrium: 9
Output Gap in different countries: 10
The Macroeconomic Equilibrium at different scopes of AS: 13
Section 3: Monetary Policy Changes in ... Show more content on Helpwriting.net ...
Unemployment can be of four types – seasonal, frictional, structural and cyclical.
Inflation:
Inflation is the general increase in the price level of a basket of goods that are considered essential
for living. Generally this basket of goods and their relative price indexes are fixed by statistical
organizations and they calculate the Inflation rate of the economy at continuous intervals of time.
Inflation can be of two types – cost push and demand pull inflation.

When the costs of raw materials that are used in the production of goods and services in an economy
increases, it triggers a decline in aggregate supply as the producers are able to supply one less
amount of goods and services with the increase in costs. This is termed as cost–push inflation in an
economy. This may be due to increase in wage rate, increase in the costs of other raw materials used
in production.
When there are shifts in the aggregate demand curve, where the demand by the people of the
country goes up, this puts pressures on the general price level as the supply cannot cope up suddenly
with the increasing aggregate demand. This results in demand pull inflation.
Phillips curve:
The curve that depicts the relationship between the unemployment rate and inflation rate in an
economy is called the Phillips curve. IT was given by A.W.Phillips in 1958. In the short run there is
a negative

Anti Inflationary Policy Essay
Introduction
Anti–inflationary policies are the policies taken by the government to announce inflation target
lowering it to zero, in the beginning of the year, which at that time is considered optimal. The
government wants to keep the inflation level low in an economy. It is the continuous rise in the
general price level of goods and services over a period of time in an economy. As we know inflation
can cause serious social consequences, if it's not perfectly anticipated, money as a measure of value
or as a medium of exchange is undermined.
The issue of credibility
The announcement of the government of anti–inflation will form expectations and be embedded into
contracts. Wage contracts are also signed in this period. In this ... Show more content on
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With rational expectations inflation is: ....................................
The first term on the right hand side is the 'inflationary bias' and the second term reflects to the
degree to which stabilisation of output shocks influence inflation.
If a conservative central banker is charge of the monetary policy the loss function would be
................................................................
.....is additional inflation aversion of the central banker.
According to Eijffinger and Hoeberichts ( 1998), the money supply can be modelled as:
.......................................
.....is the degree of central bank independence.
So, after minimising government's loss function, with rational expectations, inflation will be
depicted
as........................................

Comparing the inflation level it can be seen that the inflationary bias is lower for positive values of
..... and ......
It does show that lower level of inflation will be achieved by delegating monetary policy to a
conservative and independent central bank. But if the central banker and the government has the
same inflation aversion, (ε=0) the independence does not matter and in the same way, if the central
bank is fully controlled by the government, (ϒ=0) the conservativeness does not matter, unless it is
the optimal combination of ϒ and ε.
However, McCallum (1995) criticised this solution of reducing inflation bias. He argued that
delegation barely relocates the time inconsistency problem rather than resolving it, since the
government can still

Natural Rate Of Unemployment Essay
Natural rate of unemployment
The natural rate of unemployment (sometimes called the structural unemployment rate) is a concept
of economic activity developed in particular by Milton Friedman and Edmund Phelps in the 1960s,
both recipients of the Nobel prize in economics. In both cases, the development of the concept is
cited as a main motivation behind the prize.[1][2] It represents the hypothetical unemployment rate
consistent with aggregate production being at the "long–run" level. This level is consistent with
aggregate production in the absence of various temporary frictions such as incomplete price
adjustment in labor and goods markets. The natural rate of unemployment therefore corresponds to
the unemployment rate prevailing under a ... Show more content on Helpwriting.net ...
Of course, the prices a company charges are closely connected to the wages it pays. Figure 1 shows
a typical Phillips curve fitted to data for the United States from 1961 to 1969. The close fit between
the estimated curve and the data encouraged many economists, following the lead of Paul
Samuelson and Robert Solow, to treat the Phillips curve as a sort of menu of policy options. For
example, with an unemployment rate of 6 percent, the government might stimulate the economy to
lower unemployment to 5 percent. Figure 1 indicates that the cost, in terms of higher inflation,
would be a little more than half a percentage point. But if the government initially faced lower rates
of unemployment, the costs would be considerably higher: a reduction in unemployment from 5 to 4
percent would imply more than twice as big an increase in the rate of inflation–about one and a
quarter percentage points.
At the height of the Phillips curve's popularity as a guide to policy, Edmund Phelps and Milton
Friedman independently challenged its theoretical underpinnings. They argued that well–informed,
rational employers and workers would pay attention only to real wages–the inflation–adjusted
purchasing power of money wages. In their view, real wages would adjust to make the supply of
labor equal to the demand for labor, and the unemployment rate would then stand at a level uniquely
associated with that real wage–the "natural rate" of unemployment.
Figure 1 The Phillips Curve, 1961–1969

Inflation And Unemployment Essay
Abstract
The main aim of this study is to investigate the existence of trade–off relationship between inflation
rate and unemployment rate in Namibian economy between 1991 and 2014 the perspective of
Phillips curve by using the Ordinal Least Square (OLS) method. The results of Augmented Dickey–
Fuller test shows that all variables are stationary at level and the integration test shows that they
integrated at level I(0). The analysis result shows the negative relationship between inflation rate
and unemployment rate in short–run as it was expected. But, in the long run the estimated results
shows a positive relationship between inflation rate and unemployment rate in Namibia which is
consistent with "Lucas Critique" where inflation policy ... Show more content on Helpwriting.net ...
Chapter one
Introduction
For years now economist have been debating about inflation and unemployment whether it is
possible to achieve both of this main macroeconomic goals , which is low inflation and low
unemployment in the economy at the same time without harming the economy. In this case it
remains one of the challenge that face most of developing countries that include Namibia, to sustain
the low inflation and low unemployment rate. Philips curve was emerged in 1960 in United
Kingdom, was named after A. W. Philips the founder of Philips curve. Philips curve suggested that
there is inverse relationship between inflation and unemployment and there are three assumptions of
Philips curve: the first one is that in the short run there is trade–off between unemployment and
inflation. The second assumption is that aggregate supply can break the concept of Philips curve
because it can cause the stagnation that is high unemployment and high inflation. And the final
assumption is that in the long–run there is no significant trade–off between unemployment and
inflation. The economist like (McConnell 16th edition) has best interest to identify their
relationship; in the short run there is trade–off between unemployment and inflation. In this view
different studies in different countries have found out

The Phillips Curve : The Epitome Of Antiquity Essay
Michael Liotti and Brian Levine
Professor Predescu
MA 235–H01
Final Project
The Phillips Curve: The Epitome of Antiquity
Abstract
In this paper, we will present a model discussed at length in Todorova (2012) representing the
Phillips curve, the textbook macroeconomic relationship posting a negative relationship between
unemployment and inflation. Specifically, the model posits that when unemployed workers are
scarce, employers must compete with one another for the remaining, qualified workers by bidding
wages upward, which translates into higher costs, which combined with stronger consumption by a
more employed population, generates higher prices. To the contrary, when unemployment is high,
perhaps a result of an adverse shock to the economy, demand for labor falls, as does consumption
and investment spending, which reduces overall economic activity and tends to reduce prices. The
Phillips curve recently has come under scrutiny in the literature and among Federal Reserve
policymakers. Many current members of the Federal Open Market Committee (FOMC) cite the
Phillips curve as their justification for continuing to raise interest rates, but there are valid questions
as to whether this relationship fits the data. Using Todorova's model, we find via computations and
numerical simulations that the behavior of the inflation rate is in all cases oscillatory in nature –
calling into question both the wisdom of the textbook Phillips curve proposed by Olivier Blanchard
and the

Economic Analysis Of Unemployment And Its Impact On Gdp
Economic Analysis of Unemployment and its Impact on GDP in Developed Countries Paul
Kuechenmeister Econ 4331W August 3rd, 2014 Introduction This study examines the impact of
unemployment rates to a developed economies growth rate. This paper will be built off of the most
distinguished idea addressing the relation of economic growth and unemployment, Okun's Law .
Okun's Law that assesses the relation between unemployment and economic growth is one of
linearity . Okun's Law is the idea that there is a natural level of unemployment and when the level of
unemployment is above the natural rate, economic growth suffers. This paper aims prove correlation
between the level of unemployment and level of economic growth in developed countries. This
dissertation will utilize a linear regression model for a cross–country regression analysis. The type
of unemployment used in this dissertation will be aggregate unemployment, while drilling down and
separating out structural, frictional and cyclical unemployment would be ideal in running a
regression, the data is simply not present for the subset of countries used in this analysis. This study
examines 25 developed countries unemployment rate per capita and GDP growth rate per capita
from 1991 to 2012. Literature Review Arthur Okun published a paper in 1962 examining the
relationship between unemployment rates and economic growth. Okun's paper focused on the
United States post–war due to the spurt of economic growth and

Federal Reserve Should Raise The Federal Funds Rate
The discussion of whether the Federal Reserve should raise the federal funds rate is a highly
contentious one. Members of the Federal Reserve ("Fed") and academic economists disagree about
what constitutes appropriate future macroeconomic policy for the Unites States. In the past, the Fed
had been able to raise rates when the unemployment rate was under 5% and inflation was at a target
of 2%. Enigmatically, since the Great Recession and despite a strengthening economy, year–over–
year total inflation since 2008 has averaged only 1.4%–as measured by the Personal Consumption
Expenditures Price Index ("PCE"). Today, PCE inflation is at 1–1.5% and has continuously
undershot the Fed's inflation target of 2% three years in a row. (Evan 2015) In the six years since the
bottom of the Great Recession the U.S. economy has made great strides in lowering the published
unemployment rate from about 10% back down to about 5.5%. In light of this data, certain
individuals believe that the Federal Reserve should move to increase the federal funds rate in 2015
because unemployment is near 5% and inflation should bounce back on its own (Derby 2015).
However, this recommendation is misguided.
Overview
The Federal Reserve should utilize a balanced approach to monetary policy. The current state of the
economy–undershot employment and inflation goals–presents no conflict in achieving a neutral
state. In fact any action that supports employment growth also moves inflation up toward our target
(Evan

Applying The Free Online Visa Entitlement Verification...
Introduction
As a result of the shortage of registered and enrolled nurses in our facility it is much prudent to
source for skilled health workers migrants to fill the gap. The migrants can lawfully work in
Australia under an array of visas inclusive of the employer sponsored options also known as 457
visa. This means the skilled migrants to be employed are entitled to the similar basic workplace
protections and rights equal to the Australian workers (Khoo, et al. 2007).
Working Legally In Australia
The organization is bound by the Migration Act 1968, which criminalizes employment of an illegal
worker, or refer an illegal worker to a different organization. The organization must utilize the free
online Visa Entitlement Verification Online (VEVO) to verify the visa entitlements and status of a
possible employee. The organization can also contact the Department of Immigration and Border
Protection's for enquiries related to a visa holder 's work rights (Phillips & Stinks, 2012).
Basic Workplace Rights
The basic workplace rights and protections of all skilled migrants which ought to be met include:
Complying with appropriate Australian standards which ensure workers have proper and legal work
rights, award conditions including Australia's National Employment Standards and workplace laws.
Additionally, the organization must comply with the National Fair Work System, employers'
obligations to workers and National Employment Standards (Phillips & Stinks, 2012).
Basic Workplace

Minimum Wage : Low Skilled And Young Workers
Introduction Minimum wage, a program created to help the poor, has every contrary effect to its
well intentions. Throughout the history, people who hurt the most during minimum wage hikes are
the low–skilled and young workers. Drastically raising minimum wage is meaningless as high
inflation usually comes alongside with wage increases. Past economic statistics have shown that the
rate of increase in inflation usually outpaced the rate of increase in minimum wage. Thus, the real
value wage workers receive worth less than if there had been no minimum wage increase. This
paper will employ empirical studies and theoretical analysis to show that minimum wage has
exacerbated the problem of unemployment as well as increased income ... Show more content on
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(p. 94) In 1938, significant job losses were caused by the first 25 cents minimum wage increases.
With the first federal minimum wage, "there was a 23 percent decrease in the number of hand–
transfer machines, a 69 percent increase in converted transfer machines, and a 10 percent increase in
fully automatic machines." (Seltzer) This employment effect still holds true nowadays. Indeed, the
negative effect of minimum wage is larger in magnitude for unskilled labors than their skilled
counterparts because skilled labors are relatively less easy to substitute for technological change. In
additions to low–skilled workers, teenagers are the second largest victims of mandated wage.
Contrary to "teens represent 5.2 percent of workers who would only be affected by the proposed $15
New York State minimum wage." (Reith, p.12), the actual numbers are far higher. According to
Economist David Neumark at University of California, Irvine, "for every 10 percent increase in the
minimum wage, employment for high school dropouts and young black adults and teenagers falls by
8.5 percent" (Eastlick). With the 50% increase in minimum wage from $10 to $15 in New York City,
there will be a reduction of 42.5% teen employment as opposed to 5.2% claimed by Reith.
Consequently, the massive youth unemployment will not only inhibit teens' opportunities to gain
valuable work experiences, but also causes other social problems which could lead to larger
employment gap, high crime rates, and

James Galbraith's Time To Ditch The U
In his article Time to Ditch the NAIRU, published in the Journal of Economic Perspective, James
Galbraith has addressed an alternative view on the controversial NAIRU, or the natural rate of
unemployment. His argument is well presented in four parts: the non–compelling theoretical cases
for the natural rate; the mismeasure of the NAIRU and the shortcomings of the short–run Phillips
curve; professional disagreements and discussions on the location of the NAIRU, and lastly, costs
and benefits of using the natural rate of unemployment a policy guide tool. This response paper will
critically analyze Galbraith's view and provide a personal viewpoint on the main ideas related to the
NAIRU, in context particularly presented by Galbraith and the world's economy in general.
In "Unsolved Theoretical Questions", Galbraith suggests the current and past debates about the
concept of the NAIRU, and then raises several concerns about the validity and usefulness of the
natural rate. The idea of the natural rate was invented by Milton Friedman (1968) and Edmund
Phelps (1968). Specifically, it was Friedman's presidential lecture that ... Show more content on
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Galbraith mentions that the United States has not experienced wage–led inflation since the 1950s,
while the main factors that accelerated inflation were oil production, or dollar devaluation. Another
interesting question is bought up "Why are no general equilibrium theorists proposing the NAIROP
(natural rate of oil production) or the NAIRODD (natural rate of dollar devaluation). According to
the old Phillips curve model, if real wage has been stable or falling, can we conclude that the
economy has always been above the NAIRU, and the inflation rate should have been falling as a
result? (But it actually did not, because of other mentioned

Malaysian Economic Transformation Programme ( Metp )
The (GDP) measures of national pay and yield for a given nation 's economy. The total national
output (GDP) is equivalent to the total consumptions for every last great and administration created
inside the nation in a stipulated timeframe. This page gives – Malaysia GDP – real values,
chronicled information, estimate, diagram, measurements, monetary logbook and news. Malaysia
GDP – real information, verifiable outline, and timetable of discharges – updated in April of 2016.
Malaysia's Government's measures adopted to achieve the production output performance
Malaysian Economic Transformation Programme (METP) is making a great effort to develop
Malaysia by 2020. Working together with National Economic Model (NEM), to achieve the high
GDP, per–capita and well distributed income and great quality growth.
METP is also introducing 8 Initiative of Strategic Reforms.
1. Re–fresh and stimulate the Malaysian private sector,
2. Creating an aggressive atmosphere of national economy,
3. Upgrading the power of public sector
4. Making the transparencies of market
5. Direct promoting governmental policy regarding minorities in society
6. Enhancing and empowering better quality of labour forces
7. Minimize the presence of foreign labour
8. Enhancing sustainability of local growth and local labours, establishing the knowledge
fundamentals of facilities and Sustaining the growth resources
With reference to the above figure 3, we can conclude that the lowest unemployment rate in

A Brief Note On Unemployment And The Unemployment Rate
Diemmi Nguyen
Econ102
January 9, 2017
Dr. Nurul Samiul Aman
Midterm Exam
Question 1
Full employment is when there are enough jobs available so that everyone can work. Full
employment does not necessarily mean that the unemployment rate is 0. At full unemployment,
there is frictional and structural unemployment. Frictional unemployment is the process of people
moving from one occupation to another. Structural unemployment is when the individual do not
qualify for the jobs. The definition of 'full' employment does not have a clear measured rate due to
bad data on job industries. First off, surveys can provide inaccurate data. Secondly, when the
demand is high, employers will take chances for people who normally would not qualify for the ...
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This relationship will cause an increase in the costs per unit of output of products and goods,
causing inflation for the economy.
Question 2B
Question 3A
Date of purchase: $500,000 of shares of stock CPI = 190
One year later: $530,000 price sold CPI = 200
Rate of return = (530,000–500,000)/500,000 = 0.06 = 6%
% of inflation = (200–190)/190 = 0.0526 = 5.263 % inflation
"real" rate of return = we paid ($500,000/190) X 100 = $263,158 of shares of stock we received
($530,000/200) X 100 = $265,000 from the sale. So real rate of return = (265,000–263,158)/263,158
= 0.7 %

Question 3B
The CPI includes some weight of imported goods, while the GDPD does not include the weights of
imported goods. In this situation, we are calculating the real rate of return, so we use the CPI
because it more accurately expresses the average percentage of price increase of household
purchases with income, as well as goods and services.
Question 4A
The rise increase of inflation expectations lowers the expected real value of future payments to T–
note buyers. This makes the current prices less attractive and reducing demand. As a result, the
prices of the T–notes will lower, as nominal interest yields increase from 2.8% to 4.2%.
Nominal interest before = 0.6%+2.2% = 2.8%
Nominal interest after one year = .2%+4% = 4.2%
Question 4B
Quesetion 5
Labor Productivity = Y/L Y = RGDP and L= hours of labor worked in economy per

Australia 's Lack Of International Competitiveness
External stability is an aim of government policy that seeks to promote sustainability on the external
accounts so that Australia can service its foreign liabilities in the medium to long run and avoid
currency volatility. Australia has persistently had a high CAD around 4.2% of GDP since the mid
1980s. Australia has also experienced a rising terms of trade to 130.0 in late 2011 due to the
commodities boom as a result of the industrialization of the BRICs, whereby Australia has
experienced high export and national income, but has resulted in less competitiveness in other
sectors due to the high AUD, causing the 'Dutch disease' whereby non–commodity sectors lose
competitiveness. Similarly is can be seen in its narrow export base whereby in 2012–13 one third of
export revenue came from coal and iron ore ($96 billion from 300 billion), furthermore 57% of
Australian export revenue is made up of mineral and energy exports, whereby Australian growth has
been largely fuelled by commodity exports and mining boom. Australia's lack of international
competitiveness as a result of geographical location and small population, as well as the decline of
the manufacturing industry to overseas low cost producers, with the problem being further increased
by the high AUD exchange rate, as a result of the mining boom. The fall in domestic production has
led to an increase in imports and a fall in productive innovation compared to advanced economies
has led to a rise in CAD. The growth of

Your Dependent Variable And For Your Six Independent...
I have data for my dependent variable and for my six independent variables. My dependent variable
is inflation. The inflation data used in this paper comes from EuroStat. Inflation is calculated as the
annual average rate of change (%) in the Harmonized Indices of Consumer Prices (HICP). The
HICP is a consumer price index which has been harmonized across EU countries, in order to avoid
differences in how the price index is calculated. Inflation varies greatly across countries and the
lowest inflation in this data set is –1.7%, while the highest is 5.5%. My first independent variable is
interest rates and the data also comes from EuroStat. The rates used in this analysis are part of the
interest rate on the main refinancing operations (MRO), which provides the bulk of liquidity to the
banking system. The data encompasses both fixed rate and minimum bid rate since the ECB
dropped the minimum bid rate and decided that the weekly main refinancing operations would be
carried out through a fixed–rate tender procedure in 2008. I hypothesize that the sign of this variable
is negative since lower interest rates result in higher liquidity due to higher borrowing ability and
less incentive for savings, boosting consumption and spending enhanced, which increase demand.
The increased aggregate demand increases the price level, which causes inflation. My second
variable is productivity growth. The productivity data used in this paper is from the OECD database
and it is defined as the

Unemployment Is A Key Macroeconomic Indicator
Unemployment is a simple term in itself but the concept is not as clear–cut as it may suggest.
Unemployment is a key macroeconomic indicator used by policymakers to determine the economy's
performance relative to it's productive potential (OECD, 2014). However, for it to be a reliable
indicator there must be a commonly accepted definition to allow for comparison. The United
Kingdom follows the internationally agreed definition of unemployment set by the International
Labour Office (hereinafter: ILO) as "Anybody who is without work, available for work and seeking
work. This includes those who have actively sought work in the last 4 weeks, available to start work
in the next 2 weeks, or is waiting to start work in the next 2 weeks" (Geneva 1982, Cited by
International Labour Office). The Labour Force Survey (hereinafter: LFS) is a sample survey
covering a three–month period that is consistent with the ILO definition, this allows for cross–
country comparisons. It is a direct assessment of unemployment is used to establish those that are
employed, unemployed or economically inactive. Another means of unemployment measurement is
the Claimant Count, it's a by–product of administrational data collected by records of those on job
seekers allowance. For the sake of this essay I will not be focusing on the Claimant count due to it
underestimating unemployment figures– as seen in below in Figure 1. Figure 1: Quarterly changes
in Unemployment and the Claimant Count (aged 18 to 64),

Inflation Cause, Effects and Remedies
Inflation
It's causes, effect and remedies.
By: Subrat Choudhury
Inflation and Deflation
I
INTRODUCTION
Inflation and Deflation, in economics, terms used to describe, respectively, a decline or an increase
in the value of money, in relation to the goods and services it will buy. Inflation is the pervasive and
sustained rise in the aggregate level of prices measured by an index of the cost of various goods and
services. Repetitive price increases erode the purchasing power of money and other financial assets
with fixed values, creating serious economic distortions and uncertainty. Inflation results when
actual economic pressures and anticipation of future developments cause the demand for goods and
services to exceed the supply ... Show more content on Helpwriting.net ...
Economic historians have identified the 16th to early 17th centuries in Europe as a period of long–
term inflation, although the average annual rate of 1 to 2 percent was modest by modern standards.
Major changes occurred during the American Revolution, when prices in the U.S. rose an average of
8.5 percent per month, and during the French Revolution, when prices in France rose at a rate of 10
percent per month. These relatively brief flurries were followed by long periods of alternating
international inflations and deflations linked to specific political and economic events. The U.S.
reported average annual price changes as follows: 1790 to 1815, up 3.3 percent; 1815 to 1850, down
2.3 percent; 1850 to 1873, up 5.3 percent; 1873 to 1896, down 1.8 percent; 1896 to 1920, up 4.2
percent; and 1920 to 1934, down 3.9 percent. This extended history indicates a recurring sequence
of inflations, linked to wartime periods, followed by long periods of price stability or deflation.
Consumer prices accelerated during the World War II era, rising at an annual average rate of 7.0
percent from 1940 to 1948, and then stabilized from 1948 to 1965, when the annual increases
averaged only 1.6 percent, including a peak of 5.9 percent in 1951 during the Korean War. In the
mid–1960s a chronic inflationary trend began in most industrial nations. From 1965 to 1978
American consumer prices increased at an average annual rate of 5.7 percent, including a peak of

Unemployment And Its Effects On The Economy
INTRODUCTION:– Unemployment happens when a person who is effectively looking for work is
not able to look for some kind of employment. Unemployment is regularly utilized as wellbeing's
measure of the economy. The most as often as possible referred to measure of unemployment is the
unemployment rate. This is the quantity of unemployed persons divided by the quantity of
individuals in the work power. The unemployment rate is expressed as a percentage and is
calculated as follows: Unemployment rate= Unemployed workers /Total labor force * 100%
According to Australian Bureau of Statistics, unemployment Rate in Australia diminished to 6.20
percent in August from 6.30 percent in July of 2015. Unemployment Rate in Australia found the
middle value of 6.96 percent from 1978 until 2015, coming to an unsurpassed high of 11.10 percent
in October of 1992 and a record low of 4 percent in February of 2008. During periods of recession
an economy for the most part encounters a moderately high unemployment rate. The downturn in
the US economy and worldwide economies amid 2007, 2008 and 2009 influenced Australian trades,
financial development and anticipated unemployment levels. The reasons, outcomes, and
arrangements fluctuate in view of the particular kind of unemployment that is available inside of a
nation. There are three essential classes of unemployment that are commonly examined. They are
structural, frictional and cyclical unemployment (2). There are other types of

Inflation Cause, Effects and Remedies
Inflation
It's causes, effect and remedies.
By: Subrat Choudhury
Inflation and Deflation
I
INTRODUCTION
Inflation and Deflation, in economics, terms used to describe, respectively, a decline or an increase
in the value of money, in relation to the goods and services it will buy. Inflation is the pervasive and
sustained rise in the aggregate level of prices measured by an index of the cost of various goods and
services. Repetitive price increases erode the purchasing power of money and other financial assets
with fixed values, creating serious economic distortions and uncertainty. Inflation results when
actual economic pressures and anticipation of future developments cause the demand for goods and
services to exceed the supply available ... Show more content on Helpwriting.net ...
This differs from the CPI in that price subsidization, profits, and taxes may cause the amount
received by the producer to differ from what the consumer paid. There is also typically a delay
between an increase in the PPI and any eventual increase in the CPI. Producer price index measures
the pressure being put on producers by the costs of their raw materials. This could be "passed on" to
consumers, or it could be absorbed by profits, or offset by increasing productivity. In India and the
United States, an earlier version of the PPI was called the Wholesale Price Index. Commodity price
indices, which measure the price of a selection of commodities. In the present commodity price
indices are weighted by the relative importance of the components to the "all in" cost of an
employee. Core price indices: because food and oil prices can change quickly due to changes in
supply and demand conditions in the food and oil markets, it can be difficult to detect the long run
trend in price levels when those prices are included. Therefore most statistical agencies also report a
measure of 'core inflation', which removes the most volatile components (such as food and oil) from
a broad price index like the CPI. Because core inflation is less affected by short run supply and
demand conditions in specific markets, central banks rely on it to better measure the inflationary
impact of current monetary

From Inactivity to Unemployment after the Recession
Many people have moved from inactivity into unemployment after the recession. Since the start of
the recession in 2008, more people have decided to re–enter the labor market with the goal of
finding a job. In the latest period of 2013, 523,000 people moved from inactivity into
unemployment. It has increased speedily since 2008. This could be because of the financial
pressures put on household because of the recession. (Dow Jones 2014)
Also, number of recent welfare reforms may have influenced such as changes to the conditionality
for lone parent income support and the replacement of incapacity benefit with support allowance
and employment. (Dow Jones 2014)
UK Monetary policy
Monetary policy includes using interest rates and other financial tools to affect the levels of
Aggregate Demand and consumer spending. In the UK, the objective of monetary policy is to keep
inflation within the target of CPI 2% +/–1. They also emphasize on other macroeconomic variables
such as unemployment and growth. (Tevgan Pettinger 2012)
The monetary policy in the UK is set by the monetary policy committee of the Bank of England.
They try to meet the inflation target set by the government. (Tevgan Pettinger 2012)
During the recession of 2008–2009, the Bank of England used 'Quantitative Easing' as part of their
monetary policy. This includes creating money electronically such as government bonds from banks
to buy assets. Deflationary pressures are avoided and an increase in the money supply is seen

Unemployment And Its Effects On Unemployment
The term Hysteresis means dependency on past history; Hysteresis in unemployment therefore
implies that unemployment depends on its past. This further implies that demand or supply side
shocks to unemployment have the tendency to permanently affect the unemployment path (Saeid
Eisazadeh 2014). There are several explanations for the persistence of unemployment, George S. et
al (1988) highlights two broad explanations for the persistence of unemployment. The first states
that long run unemployment rate is impacted by exogenous shocks with structural characteristics.
Such theories argue that technological changes increases the rate of structural unemployment for
example changes in technology render some skills obsolete and even in the face of new job
openings, the skills sets are insufficient or poor matches to these new openings (Gabriel P, 2015). In
this sense, cyclical unemployment readily translates to structural unemployment. This phenomenon
could equally be referred to as "unemployment scarring," as the existence of long–term
unemployment leaves persistent scars" on the employment prospects of the unemployed (George S.
et al, 1988). Another perspective given to the persistence of unemployment is that labour market is
slow in adjusting to a new equilibrium such that even temporary shocks persist. Both explanations
point towards hysteresis More recent studies of high unemployment persistence rely more on the
first explanation, and have also attempted to identify the

The Keynesian School Of Economic Thought
1) List three key concepts from the Keynesian School of economic thought: (25 points) At least one
concept must describe the management of aggregate demand. a. The primary concept of the
Keynesian School of economic thought revolved around the management of aggregate demand. The
author of this idea, John Maynard Keynes, believed the economy was fundamentally unable to
sustain itself at full employment. One of his proposed solutions to this was for the government to
intervene to increase aggregate demand. He argued that by investing government funds, the
amplitude of the business cycle could be reduced and would stabilize continued economic growth.
Another method of managing aggregate demand involved taxation. By lowering the taxes on certain
goods and raising others, the government could influence public demand for certain products to
fluctuate based on its benefit to the economy as a whole. b. Another concept of Keynesian thought is
that of excessive savings. Mr. Keynes believed that if savings occurred in excess of the planned
investment it would increase the possibility of a recession or depression. He believed that excessive
savings were caused by discouraging business prospects, over investment in previous years, and a
decrease in consumer demand. The law of supply and demand states simply that as savings
increased interest rates would drop, until there was no longer reason to save; this plunging interest
rate would bring the economy in balance once again. Mr. Keynes

Theories Of Growth And Growth Models
2.2.3 Growth Theories
Under the growth theories some theories of growth and growth models will be reviewed;
i) The Harrod–Domar Growth Model
In economic literature, this model is called capital only model. Harrod and Domar (1948) took over
from Rostow, because Rostow had some unanswered questions. The model stated that saving is a
certain proportion of national income and net investment is defined as the change in capital stock
(K). The model further assumes that there is some direct relationship between the size of the capital
stock, (K), and total GNP, (Y). This follows that any addition to the capital stock in the form of new
investment will bring about corresponding increase in the flow of national output, GNP. This
relationship is known in economics as the capital–output ratio. If the capital–output ratio is defined
as k and assume further that the national savings ratio, s, is a fixed proportion of national output
(e.g. 6%) and that total new investment is determined by the level of total savings, we can construct
the following simple model of economic growth Balami (2006).
Savings (S) is some proportion, S, of national income (Y) such that we have the simple equation
S = SY ....................................................................................... (2.1)
Net investment (I) is defined as the change in the capital stock, K, and can be represented by ΔK
such that
I = ΔK ...................................................................................... (2.2)
But because the total capital stock, K, bears a direct relationship to total national income or output,
Y, as

Market Failure Research Paper
Topic Suggestions for Market Failure Research Paper
The following are some ideas to help you pick a topic for the Market Failure Research Paper
assignment. Consult with your instructor if you are having trouble picking a topic.
What are some areas where the MARKET fails to give us adequate quantity of output and desirable
price??
(A) Public Goods and Service –– Schools, Highways and Streets, Fire and Police Protection,
National Defense, Prisons
(B) Industries that Need to be Regulated –– Utilities, Airlines, Banks –– As our economy changes
what other industries also need to be regulated or de–regulated?
(C) Externalities –– Companies produce some type of external cost that affects the community. The
company would not voluntarily reduce or ... Show more content on Helpwriting.net ...
This is designed to provide an incentive for people to work extra hours and keep more of what they
earn.
Changes to the tax and benefit system also seek to reduce the risk of the 'poverty trap' – where
households on low incomes see little net financial benefit from supplying extra hours of their labor.
If tax and benefit reforms can improve incentives and lead to an increase in the labor supply, this
will help to reduce the equilibrium rate of unemployment (the NAIRU) and thereby increase the
economy's non–inflationary growth rate.
Changes to indirect taxes in particular can have an effect on the pattern of demand for goods and
services. For example, the rising value of duty on cigarettes and alcohol is designed to cause a
substitution effect among consumers and thereby reduce the demand for what are perceived as "de–
merit goods". In contrast, a government financial subsidy to producers has the effect of reducing
their costs of production, lowering the market price and encouraging an expansion of demand.
The use of indirect taxation and subsidies is often justified on the grounds of instances of market
failure. But there might also be a justification based on achieving a more equitable allocation of
resources – e.g. providing basic state health care free at the point of use.
Lower rates of corporation tax and other business taxes can stimulate an increase in business fixed
capital

Causes Of Unemployment In Australia
Analyse the causes of unemployment, its effects on the Australian economy and how they are
addressed through use of macroeconomic policies. Unemployment refers to when an individual is
actively seeking work and is aged 15 years or over, but is unable to find work (not hired). There are
many causes and effects of unemployment that result in different actions being made by the
Australian government through their use of both monetary policy as well as fiscal policy. The
unemployment rate is calculated by measuring the number of unemployed over the total labour force
(anyone 15 years or older who currently has a job or is actively seeking) [x100]. While the
government does not aim for 0% unemployment as this has negative consequences, it is ... Show
more content on Helpwriting.net ...
E.g. Cyclone Debbie, which tore down many banana plantations in Queensland, rendering those
farmers who worked there and were unable to work after the cyclone were/are seasonally
unemployed as the environmental conditions do not suit their needs. An increase or decrease in the
unemployment rate can have a multiple effects on the Australian economy, both beneficial as well
detrimental to the economic conditions and the societal outlook. An increase in the unemployment
rate means that more individuals do not have an income, thus meaning many households suffer
reduced disposable funds. This causes a decrease in the level of aggregate demand within the
economy and therefore reduces economic growth. This in turn causes a slower circular flow of
income, meaning that households may be forced into or past poverty, as a result of the lowered
income generated, reducing the living standards and quality of life. The downturn experienced by
the economy can also offset many individuals seeing them not wanting to return back to the
workforce due to the lack of jobs available, making them long–term unemployed rather than
cyclically unemployed, or if the firm initially was promoting structural change, structurally
unemployed. Combined with poverty, the aspect of unemployment can lead to other severe mental
health issues and illness reaching extremes. To combat high

The main aim of this chapter is to examine the relationship between two economic fundamentals
inflation and unemployment using ordinary least square technique. The model regress the inflation
rate against unemployment rate, and money supply over the period 1991–2014.
Model specification
Model specification
The study will use the time series data. This study investigates the relationship between
unemployment and inflation in Namibia depending on the formulation provided by Blanchard
(2005). The Phillips curve can be expressed in the following format:
_t–π_tê=β_1 (U_t–U_(NR ) )+ e_t (6)
Where_t: The actual inflation rate at time t. π_tê: The expected inflation rate at time t.
U_t: The actual unemployment rate prevailing at time t.
U_(NR ): The natural rate of unemployment at time t. e_t: The stochastic error term.
Since π_tê is not directly observable, a simplifying assumption that _t=π_(t–1)ê is applied,
which means that the inflation rate expected that year is the inflation rate that prevailed in the
previous year. The Phillips relationship given in equation (6) is known as the modified Phillips
curve or the expectation–augmented Phillips curve.
From equation 6 I obtained the linear equation 7, model to be used in the study.
_t–π_tê=β_1 (U_t–U_(NR ) )+ e_t _t =β_(0 )+β_1 U_t + e_t (7)
Where_t: is the inflation rate is at a time of t, U_t: is the unemployment rate in country at time t.
β_(0 )and β_1 are the unknown parameter that shows

Growth Theories Of Growth And Growth Models
Growth Theories
Under the growth theories some theories of growth and growth models will be reviewed;
i) The Harrod–Domar Growth Model
In economic literature, this model is called capital only model. Harrod and Domar (1948) took over
from Rostow, because Rostow had some unanswered questions. The model stated that saving is a
certain proportion of national income and net investment is defined as the change in capital stock
(K). The model further assumes that there is some direct relationship between the size of the capital
stock, (K), and total GNP, (Y). This follows that any addition to the capital stock in the form of new
investment will bring about corresponding increase in the flow of national output, GNP. This
relationship is known in economics as the capital–output ratio. If the capital–output ratio is defined
as k and assume further that the national savings ratio, s, is a fixed proportion of national output
(e.g. 6%) and that total new investment is determined by the level of total savings, we can construct
the following simple model of economic growth Balami (2006).
Savings (S) is some proportion, S, of national income (Y) such that we have the simple equation
S = SY ....................................................................................... (2.1)
Net investment (I) is defined as the change in the capital stock, K, and can be represented by ΔK
such that
I = ΔK ...................................................................................... (2.2)
But because the total capital stock, K, bears a direct relationship to total national income or output,
Y, as

The New Change in Healthcare
The New Change There are many problems in the World today. Some solvable and some impossible
to solve– but as humans, we can only try our best to come up with resolutions to solve the problems.
In the U.S, people recognize the problems with healthcare insurance, but most people are not
concerned about changing it. They would rather maintain the current healthcare because people are
scared that the change will make the situation worse. For years now, the U.S has been fighting the
issues within the problem of healthcare insurance. Therefore the two main causes for preventing
every citizen in the U.S from getting healthcare insurance is unemployment and high cost.
Throughout the years in the U.S, there have been proposals to solve providing healthcare to citizens.
One recent proposal that has occurred in present day is the Obamacare plan. The Obamacare plan is
called the "Affordable Care Act". This care act is more affordable and helpful to people. It is
intended to make sure that everyone is taken care of no matter how old. Not everyone understands
that with this plan everyone benefits, but some people still are against the plan because they feel that
everyone should not get the same treatment because they are higher than others. The Obamacare is
great, because it is supposed to help everyone out. People who don't currently have healthcare
insurance and people who have pre–existing conditions who have trouble getting insurance. One of
the ways Obamacare will accomplish

Work vs. Employment vs. Occupation
Work refers to: Human labor Employment, a contract between two parties, one being the employer
and the other being the employee House work, cleaning the rooms and furnishings of a home Labor
(economics), measure of the work done by human beings Manual labour, physical work done by
people Wage labour, in which a worker sells their labor and an employer buys it Work (project
management), the effort applied to produce a deliverable or accomplish a task Working the system,
using the rules and procedures meant to protect a system, instead to manipulate that system work A
task assigned by yourself or someone else which you feel obligated to complete. noun 1.exertion or
effort directed to produce or accomplish something; labor; toil. ... Show more content on
Helpwriting.net ...
The Saxons were subsistence farmers. (Farmers grew enough to feed themselves and their families
and very little else). At times during the Saxon era there were terrible famines in England when poor
people starved to death. Some Saxons were craftsmen. There were blacksmiths, bronze smiths and
potters. At first Saxon potters made vessels by hand but in the 7th century the potters wheel was
introduced). Other craftsmen made things like combs from bone and antler or horn. There were also
many leather workers and Saxon craftsmen also made elaborate jewellery for the rich. In the Middle
Ages the land was divided into 3 huge fields. Each year 2 were sown with crops while one was left
fallow (unused) to allow it to recover. Each peasant had some strips of land in each field. Most
peasants owned only one ox so they had to join with other families to obtain the team of oxen
needed to pull a plough. After ploughing the land was sown. Men sowed grain and women planted
peas and beans. Most peasants also owned a few cows, goats and sheep. Cows and goats gave milk
and cheese. Most peasants also kept chickens for eggs. They also kept pigs. Peasants were allowed
to graze their livestock on common land. In the autumn they let their pigs roam in the woods to eat
acorns and beechnuts. However they did not have enough food to keep many animals through the
winter. Most of the livestock was slaughtered in autumn and the meat was salted to preserve it. After
1500 industry gradually grew

Externalities Of Unemployment In Australia
The problem of unemployment has been a significant one in Australia. Unemployment is a major
cost to an economy not only in terms of opportunity cost of lost production but also in terms of
major long term social costs including increased inequality, poverty and crime. Unemployment
statistics reflect the total available labour force divided by the number of people recognised as being
unemployed and are actively seeking work within a percentage. Australia's Unemployment rate
currently stands at 5.7% with the RBA considering 5% unemployment a good guide. The cause of
Australia's unemployment is widely varied and does not have a single root. One cause of increasing
unemployment could be linked to the mining boom. The mining boom led to increased demand for
Australian exports, and increased demand for the AUD on the FOREX market. This led to an
appreciation in the AUD which led to increased relative export prices, and decreased international
competitiveness in other industries such as manufacturing. A decrease in the demand for Australian
manufactured goods then occurred, causing firms to decrease supply and cut costs, resulting in a
decrease in the demand for labour, and therefore, ... Show more content on Helpwriting.net ...
The costs to the government are also significant as the government does not receive taxation
revenue from unemployed people, and often provides unemployed people with social benefits and
training programs. The government's revenue is thereby decreased, and the Current Account Deficit
increases as leakages gradually outweigh injections within the Balance of Payments. If
unemployment as the result of inadequate training or an inability to compete with globalised
standards becomes evident, social unrest can also

Essay on The Impact of the Global Financial Crisis on...
Economic growth
The impact of the Global Financial Crisis on economic growth
As a result of the global recession, Australia's GDP was forecasted to contract by 0.5% in 2009–10
in comparison to other advanced economies which were expected to contract by 3.75% in the same
year. However minor the reductions in GDP, it was evident that Australia was not exempt from the
global recession although is better placed and is expected to perform better than almost all other
OECD economies. The global recession has also triggered a fall in household wealth and a
disruption in consumer confidence with consumption forecasted to contract by 0.25% in 2009–10.
Economic recovery package – use of macroeconomic policies
Fiscal policy
Fiscal policy, a ... Show more content on Helpwriting.net ...
Conversely, total expenditure for 2009–10 is forecasted to exceed revenue, increasing by 2% on
estimated expenses since the February 2009 UEFO at $338.2 billion. It is illustrated that the
majority of revenue the government receives is from Individuals income taxation and on the other
hand, expenditure is expended most in the Social security and welfare sector.
In response to the advent of the global economic downturn in 2008, the Government utilised fiscal
policy to provide an urgent stimulus to economic activity as well as a sustainable medium term
boost to aggregate demand. The Labour Government had carried out an expansionary
macroeconomic stance with a Budget recording $57.6 billion underlying fiscal deficit in 2009–10,
which was equal to 4.9% of GDP (largest percentage of GDP on record for the last 40 years) and
will remain a deficit until 2015–16.
Further, the Government employed deliberate Government policy decisions subsequent to the crisis,
adding to a major expansionary impact on the Australian economy. Early and decisive spending
initiatives have been put in place against the face of the global recession, ensuring the economy is
secured to make the most of the global recovery. Some of the key initiatives consist of:
The Government has spent $12.2 billion to assist households financially and support economic
growth. The household stimulus package provides extensive support from low to middle–income
earners

Economics Assesment Task 2010 Essays
Synopsis:
In 2009, the world experienced a Global Financial Crisis (GFC) which caused recession in most
advanced nations around the world. In an effort to combat this, the Australian Government created a
Stimulus Package to increase aggregate demand. The treasurer, Wayne Swan proposed that $42
billion would be given to both individuals and businesses to lessen the impact of a recession. The
package included a one off $950 payment to low and middle–income families, individuals, famers,
students and other groups. The Stimulus Package was also aimed at the construction of new
buildings and upgrades, as well as roadworks. The Government also intended to give 9,540 schools
around the country, a grant to build a new hall or canteen. ... Show more content on Helpwriting.net
...
Macroeconomic policies are used to maintain and smooth out the fluctuation of the business cycle to
keep the growth rate constant. There are two types of macroeconomic policy, Fiscal and Monitary.
Fiscal Policy is a macro policy that allows the Government to increase or decrease the amount of
economic growth by either increasing or reducing the level of taxation and Government spending.
The annual budget is an example of fiscal policy. Fiscal policy takes a long time to implement as it
can only be changed every 12 months but goes into effect immediately.
The Monetary Policy is used to influence the amount of growth sustained in an economy. Things
such as interest rates and overnight loans force people to spend or save to control the amount of
growth. These rates however, are not controlled by the Government, but a separate government
funded organization called the Reserve Bank of Australia (RBA). Its role is to maintain financial
stability and to ensure that the flow of funds between savers and investors is smooth and steady, as
well as to increase economic growth safely. The interest rates are changed every month and are
quick to implement, but take a long time to go into effect. Microeconomic Reforms are also used to
maintain

Phillips Curve : A Relationship Between The Inflation Rate...
Name:
Instructor:
Course:
Date:
Phillips curve
The Phillips curve history and overview The Phillips curve represents a relationship between the
inflation rate and the unemployment rate. The Phillips curve is named after its first exponent A.H.W.
Phillips who was a classical economist who first came up with this relationship. He posited that the
lower the employment rate firms are forced to source for funds so as to increase wages and be able
to attract labour. This in turns leads to a rise in money wage inflation. The first challenge to this
theory was by Milton Friedman and Edward Phelps who in individual analysis showed that the
Phillips curve could not hold in the long run. Friedman asserted that rational employers pay inflation
adjusted wages and this ensures that there is a natural rate of unemployment which is self adjusting
in the long run. Therefore the state cannot be able as a matter of policy to regulate inflation by
pushing unemployment below the natural rate as it will readjust itself to this rate. In the long run the
inverse relationship between unemployment and inflation as posited by Phillips could not hold. His
assertion was validated in the 1970's when there was an increase of inflation from around 2.5% to
7% and the unemployment rate also increased from around 4% to 6%. He therefore contributed to
the Phillips theory by creating a distinction between the short run relationship and the long run
relationship.
The original Phillips curve above
The

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