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By 1990, Thatcher was presiding over a dichotomy, decaying industrial cities in the north and a well developed southern economy. As a result, she was replace by John Major (Columbia Encyclopaedia, 2004).
By 2000, GDP was growing at a faster rate than unemployment, possibly due to the fact that Major had obtained an IRA cease-fire, so that Northern Ireland had at least some respite from draining the economy and culture. Indeed, direct rule by Great Britain was abolished in Northern Ireland in 1999, although home rule has resulted in substantial political manoeuvring (Columbia Encyclopaedia, 2004).
By 2005, unemployment was somewhat lower, but GDP had ceased to grow at the rate it enjoyed before 2001, the year of the terrorist attacks on New York City. hile the United Kingdom was not directly affected by the attacks, as a partner with the United States in that nation's stand against the Taliban in…… [Read More]
With so much conflict continuing around the world, one can assume that government spending may begin to increase. From that perspective, they can then also be assumed that nonresidential fixed investment may also continue to go down. This is based on the qualitative relationship the two variables have with one another.
Question 3A & B
The last two quarters saw a decrease in nonresidential fixed investments. In fact, the rate dropped to about 3%, on average (Mataloni, 2013). This comes as a reaction to the recent increase seen in government spending over more recent quarters, compared to the last couple years average rates. There is a clear relationship between levels of nonresidential…… [Read More]
(Pettinger) ("Gross National Product")
The GNI is examining the total income that is generated by the citizens of a particular country. It looks at any kind of value that is added plus the taxes associated with the product. However, area such as subsidies and income from abroad are not calculated in these figures. (Pettinger)
The data that is provided is showing how the GNI is concentrating on the total income that is earned by the citizens of a country. This helps economists to determine their standard of living and purchasing power of consumers. In the future, this improves the accuracy of their forecasts by offering them with a tool to objectively compare and analyze each country. ("Calculating GNI) (Pettinger)
The main differences between the GDP, GNP and GNI are the areas of focus that is taken by economists. This is because the GDP is concerned about national output and production.…… [Read More]
Government spending (G) may include stimulus packages, investments in infrastructure, or defense spending. The taxpayer funds such spending, but also benefits from such spending. By giving people jobs and hiring private contractors, the government generates more wealth. The newly-employed purchase more goods and services, which has an overall positive effect on the economy. For example, even if a citizen is employed at a grocery store, if workers on a government project have more money to spend and buy more food, the grocery store and its employees can become more financially secure, and escape the grip of the recession.
Net exports (X-M) are the fourth and final component of GDP. Net exports constitute "the amount by which foreign spending on a home country's goods and services exceeds the home country's spending on foreign goods and services. For example, if foreigners buy $200 billion worth of U.S. exports and Americans buy $150…… [Read More]
GDP -- the production of a pound of hamburger or the production of a pound of caviar? Why?
According to the commonly used Expenditure Method of calculating GDP, the production of a pound of caviar would contribute to a nation's GDP than would the production of a pound of ground beef. The Expenditure Method calculates GDP as follows:
GDP = Private Consumption + Gross Investment + Government Spending + The difference in net exports and net imports.
Noting the simplified nature of this equation, the production-based contributing group is identified quite clearly as gross investment. This category includes all of the necessary inputs required in producing a certain good (caviar in this case). Being that caviar can be considered a luxury item, and costs much more that hamburger meat, it is safe to assume that its production is equally costly. Therefore, while the entire ground beef industry may have the…… [Read More]
Excess relying on Tourism for GDP in Fiji, Seychelles, Costa ica, Hawaii and Caribbean Islands.
Over eliance of Tourism for GDP
Holiday business is a global economic and regional development force. Tourism comes with various costs and benefits. Furthermore, the growing tourism economics contributes in tourism policymaking, planning as well as business practices. In STCC life span, a number of research documents got printed and distributed bringing forth various methods and new perspectives enabling the understanding of how global tourism affects destinations, use of resources, evaluations and business practices (Dwyer & Spurr, 2010).
According to world trade and tourism council (WTTC), tourism is estimated to contribute about 9.2% of the world GDP. It is also forecasted that this trend is likely to continue at a 4% growth per annum in the next decade in order to account for a 9.4% GDP (Dwyer & Spurr, 2010). Expenses associated with Tourism make…… [Read More]
In the U.S., unemployment benefits last generally for only 6 months. They last two years or longer in Europe. That means that there is less reason for Europeans to get off the dole and go back to work -- this has a detrimental impact on productivity.
Protectionism is higher in Europe. Europe averages higher import tariffs and non-tariff barriers in Europe than in the United States. As a result, protected industries from steel to agricultural products have less incentive to move productivity to world levels. (Stokes)
How can "traditional Europe" turn around these disadvantages and increase productivity? Some clues are given by Tony lair and Margaret Thatcher's policies in Great ritain, and by Nicolas Sarkozy's current campaign for change in France. In both cases, there is a substantial impetus for change. Great ritain reduced top taxes and social welfare benefits in the 1980's, and the country now enjoys higher employment…… [Read More]
GDP vs. Inflation
GDP is calculated through a number of measures. One of the most important is the rate of consumption. According to the research, "Consumption often makes up more than 50% of the GDP calculations of most nations. In some places, consumption makes up more than 70% of the GDP calculations" (Conjecture Corporation, 2014). Thus, increases in consumption can be tied to rising GDP reports. Thus, "the main relationship between GDP and consumption is the fact that a rise in the level of consumption translates to a corresponding rise in the level of the GDP" (Conjecture Corporation, 2014). It is thus an appropriate variable to use to represent the overall GDP of an economy.
In order to understand the relationship between inflation and GDP, interest rates will be examined alongside rates of consumption in millions. When there are lower interest rates, consumers spend more because it cost less to…… [Read More]
Labor, GDP and the Firm
Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 9% (January 2011). Economists have identified three types of unemployment. Which type would affect Wal Mart? Explain.
Fractional unemployment would have a major impact on Wal Mart. This is because the majority of Wal Mart's employees will receive salaries at minimum wage levels. In the event that someone quits, these individuals can easily be replaced (thanks in part to the high unemployment rate). The real danger is when the unemployment rate begins to decrease and more people are working in career orientated fields. This will make it difficult for Wal Mart to maintain their lowest cost structure. It is at this point that the company could be forced to pay higher forms of compensation for attracting and retaining employees. This is when the firm's profit margins will…… [Read More]
Interpreting Economic Data
Real GDP Growth Percentage -- Overview
Real GDP Overview
Money Aggregates Overview
Borrowing and Lending
Health of the Australian Economy
Real GDP Growth Percentage -- Overview
The gross domestic product (GDP) is one of the most basic economic indicators that people use as a benchmark that provides insights into the overall health of an economy (Investopedia, 2007). However, the number by itself does not provide much relevant information. In fact these numbers are so large that it is hard for most people to put this in any kind of perspective. Rather, it is how the number change that helps people to gain a perspective on what the economy is doing on a macro level. For example, if the GDP is stated in terms of it rising or falling over a course of a fiscal year then it has…… [Read More]
Pharmacy sales in the United States are positive with growth expected to increase 20% 2005-2008 according to data published by benefit management companies and a market intelligence firm. The rate of increase is lower than it has been in the past five years. Trends negatively impacting the market include consolidation, new store openings, increased mail order, drug importation, and the growth of generic pharmaceuticals. Further, if medicare covers prescription drugs at lower reimbursement levels, profitability of the industry could be adversely affected
Given that GDP and retail sales show moderate growth and that pharmacy sales have high growth potential, algreen represents a good investment opportunity. algreen is the top drugstore chain in the United States and is will well prepared to come out ahead in an intensely competitive market to capture a huge portion of the growing market.
GDP Data (Figure 1)
CBO data. Retrieved November 6, 2005…… [Read More]
The U.S. economy is currently downshifting. eal GDP appears to be growing nearly 2% annualized -- at most -- in the current quarter. This rate is down from 3% during the first half of 2010 (before impending downward revisions), and 4% during the second half of 2009. Weakening support from the monetary and fiscal stimulus, the fading inventory rotation in manufacturing, and the consequences from Europe's debt crisis are an important aspect of the recovery (Zandi 2010).
Today, the job market is where we see the recovery's weakness. Conceptualizing from the temporary ups and downs of hiring associated to the U.S. census every ten years, job growth slowed down significantly from the spring.
One of the factors related to the slowing is layoffs by state and local governments lacking sufficient resources. There is also a reluctance from private companies to hire. Even though hiring has stabilized somewhat since the recession,…… [Read More]
Labor, GDP and Firm
Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 9% (January 2011). Economists have identified three types of unemployment. Which type would affect your firm? Explain.
The three types of unemployment include: structural, changes in technology and shifts in tastes. Structural is when there is a lack of demand for workers with particular skill sets. Changes in technology, takes place when innovations and scientific breakthroughs are leading to a shift in the way businesses are operating. This is the point when there is a decrease in the total number of employees working for a particular firm. Shifts in taste are occurring when consumers want to purchase a particular product or service based on the underlying amounts of popularity. During times when there is a change in tastes, is the point that sales will decrease and those employees…… [Read More]
Healthcare spending and GDP
With the renewed comprehensive healthcare system, the obvious challenge that came with it is how to finance it. The huge projections of the financial inputs needed to efficiently run the program portends a challenge to the government and is likely to spin out of control and be unaffordable in the long run after a few decades from now. This is informed by accompanying supplies and services increasing in cost like the essential original drugs that have been noted to have increased in prices among other services within the healthcare. In many countries people are expected to pay for their own health care. Therefore the ability of people to pay for their health care or the affordability of the healthcare has become a policy issue in many countries and especially an issue of urgency. The issue of healthcare spending has been a topic for debate over the…… [Read More]
Once again however, Shengxia and Baije do not explain their arguments nor do they show exactly how the Chinese GDP evened out the trade balance with the U.S., nor how it supported the economy of its regional neighbors.
In terms of the elements threatening the future stability of the country and its economy, the authors point out that the Chinese authorities have been quick to identify these threats; they will as such address them in an efficient manner. They will for instance instate regulations capping the levels of loans to be granted to the population with the specific aim of reducing inflation and over-consumption. Examples of such measures include the limitation of the bank loans to a 7.5 million Yuan for the year, and a rumored 0.27% increase in the interest rates. At this stage, it is however unclear what exact measures the officials will take, and if these are…… [Read More]
all Street Journal Online was selected due to its discussion of Gross Domestic Product (GDP) regarding the United States and globally. Facebook, Inc. and Alphabet, Inc., the parent company of Google, have very high market valuation, in large part due to their dominance of the mobile advertising market. However, the author believes their very high combined valuation may be unduly optimistic, based on the current percentages of U.S. GDP and global GDP spent on mobile advertising and projected percentages of GDP spent on mobile advertising by 2025. Gross Domestic Product (GDP) is an important facet of Macroeconomics because it is a basic tool for determining a nation's and the world's productivity, income and expenditure. In this article, GDP is discussed, expenditures in particular are discussed and the dramatic effect of adjusting expenditures is shown when examining Facebook's and Alphabet's glowing combined market valuation.
"Facebook and Google: The $230 Billion…… [Read More]
Economic Advisor to the Prime Minister of Oman
With the upcoming election, it is important for you to understand the economic conditions in which Oman is currently situated. Oman is a country whose main export is petroleum. Like the other oil rich countries in the Middle East, it is highly dependent upon oil for its economy. The recent plunge (2013 to present) in oil prices since reaching a peak of $150 per barrel in June 2008[footnoteRef:1] has placed stress on Oman's economy. Our nation has been rated extremely well by Western ratings agencies in the past. For example Standard and Poor's rating was ranked Stable and still is, with a -/A-3 rating which represents the firm's stable outlook on Oman. S&P in fact indicated that "Oman can broadly maintain its fiscal and external stock positions over 2016-2019 against risks from weakening economic income, fiscal and external flows."[footnoteRef:2] This is a…… [Read More]
GDP and GNI Discussion: China and Canada
The country selected for our analysis is China, a nation that has experienced an apparent increase in the rate of its growth in concurrence with the shifts in the global economy. s free trade has opened China up to a greater number of trade partners and to particular trade partners in much larger proportion such as the United States, a great many indicators stand to suggest that China has in fact enjoyed a change in its rate of growth. On the surface, this appears to correspond with the principles of the Harrod-Domar model, which indicates that "the more an economy is able to save -- and invest -- the great will be the GDP growth." (Ghosh, lec3-4.1, p. 11)
s China's role in the global economy has increased, its apparent savings and capital for investment has produced a non-constant growth rate…… [Read More]
The unemployment rate for January 2013 was 7.9%, in December it was 7.8%, this appears to be a deterioration; however, it is usual for unemployment to increase in January as seasonal jobs disappear. Looking at the rate in January 2012 it was 8.3% and in January 2010 it was 9.1%, therefore unemployment rates are decreasing slowly (BLS, 2013). The consumer prices index also shows an increase; in 2012 it rose by 1.6%. Overall, there is an improvement, from a time that has been defined as a recession, the growth is slow and constrained, but expected to improve further, therefore the current economic stage is that of a recovery, or early recovery.
The traditional method of assessing the economic growth is by measuring the GDP, with the underlying assumption that where there is growth in the GDP there will be an increase in welfare, with the measure usually being…… [Read More]
U.S. ECONOMIC PEFOMANCES IN THE PAST 5 YEAS
U.S Economic Performance in the past 5 years
Major indicator of healthy state of an economy is the real Gross Domestic Product (GDP) growth rate. The GDP growth rate reveals the performances of an economy. United States is one of the richest country in the world and "has the largest gross domestic product (GDP) in the world." (Jabir, 2009 P. 3171). The country total GDP in 2010 was $14.5 trillion. (World Bank, 2012). Since 2006, the U.S. GDP has continued to fluctuate. Between 2006 and 2007, the U.S. enjoyed the growth in the GDP. In 2006, the country recorded 2.70% point of annual rate in the GDP, and in 2007, the country GDP slightly declined to 1.9%. While the U.S. demonstrated health growth rate between 2006 and 2007, the country recorded negative growth in the GDP between 2008 and 2009. In 2008,…… [Read More]
U.S. Macro economy
economy which was considered to be the world's largest has still not been able to recover completely from the financial crisis and resulting recession that hit in 2008. At the national level, spending increase to more than 25% of GDP in 2010, later in 2011 gross public debt exceeded 100% of GDP. The process of recovery for U.S. economy in the first quarter turned out to be weaker than expected. From January through March, the gross domestic product (GDP) of the nation grew at a 1.8% annual rate. The economy of U.S. has grown for 15 consecutive quarters; however the pace of those gains was about 2% which was actually in the weakest recoveries since World War II. U.S. economy is being held back by its tightening fiscal policy. In this year, the spending cuts are estimated to be $85 billion and expected to grow to $109…… [Read More]
What "current macroeconomic situation" U.S. (e.g. U.S. economy concerned unemployment, inflation, recession,)? What fiscal policies monetary policies time? Key concepts include paper -- data trends unemployment, inflation, GDP growth, expansionary fiscal policy tools, FOMC, easy money policy tools terms class.
What is the current macroeconomic situation in the U.S.
The United States is no longer mired in a full-blown recession as it was in 2008, but the process of economic recovery has been long, slow, and onerous. At present, unemployment is hovering around 7.9%. This reflects a slight increase from the last quarter. The U.S. seems to be in a precarious position, neither in full-blown recessionary mode but not entirely recovered. Of particular concern is the fact that "the increase [in unemployment] was much sharper for millennials, up from 11.5% the month before and 10.9% in November 2012" (Kingkade 2013). Young people were particularly hard-hit by the recession.…… [Read More]
Foreign Health Care Policy
Over the last several years, issues affecting the U.S. health care system have been increasingly brought to the forefront. This is because rising costs are impacting demand for different services. What has been happening is these increases are forcing insurance companies, employers and providers to pass on more of these fees to the individual. This is problematic, as they are unable to afford these costs and premiums for coverage. When this happens, the total number of people who are uninsured will increase exponentially. Evidence of this can be seen with the fact that there are 48 million Americans who have no form of health care coverage. (Johnson, 2010) (Harrington, 2009)
While in Germany, the costs of care are lower and 90% of the population is insured. This is because they are using a different model. To fully understand which system is better requires comparing the two…… [Read More]
However, aggregate supply always responds, eventually, to demand so aggregate supply will fall as well, until there is a state of equilibrium again.
Increasing the amount of deposits that commercial banks must hold with the central bank will diminish the money multiplier, which is the amount of money a bank can create with each dollar of reserves. The money multiplier is determined by the reserve ratio. The higher the reserve ratio, the less money the bank will have to lend out, diminishing the money multiplier. Requiring the commercial banks to increase deposits will increase the reserve ratio by.5%, thereby diminishing the money multiplier by .5.
The spending multiplier, which is the measure of additional spending in the economy generated as a result of the initial spending, will be reduced because of the reduction in consumption caused by less wages, rent, and profits paid by firms. The investment multiplier, the…… [Read More]
GDP forecast for the next 18 months is bound to have an impact on the industrial figures in general and, in particular, on the automobile industry, in terms of production and revenues.
First of all, a GDP forecast will influence the foreign investments in the United States. The reason for this is quite simple and it revolves around the confidence concept. A positive GDP forecast will mean that the American economy is presently performing well and, even more important, that it will continue to perform well into the future as well, with an ascending GDP trend.
For a foreign investor, this will mean that acquiring American assets is a less risky and more profitable action than in a different situation. The fact that you have a positive forecast for the next 18 months is bound to show that the economy is producing, that the figures are satisfactory and that you…… [Read More]
DQ #1. An economy's output is also its income because its output is calculated as the measurement of all the goods and services produced by the economy, and also being channeled back into the economy in the form of purchases in other economic sectors, savings, and investments. Expenditures measured in the form of GDP tally the production of goods and services on U.S. soil while GNP measures the production of goods and services produced anywhere by the U.S. residents. Both can generate income for U.S. companies and consumers that can be funneled back into the economy in exchange for other durable and nondurable goods, and services, as well as reinvested into other sectors. However, imported goods are subtracted out of the calculation of a national income, because the funds generated by the foreign production companies will be funneled back to the base, foreign nation. U.S. consumers may buy foreign goods,…… [Read More]
Similarly, the subprime crisis represents well the argument between GDP and GPI. The housing bubble resulted in strong profits for the banking, real estate sales and construction industries. Each contributed to GDP growth. Yet, GPI argues that very little real value was created. The sale of a home from one speculator to another increases the GDP, but it creates no value. If that home is flipped three or four times in a year, it inflates the GDP without creating any real wealth for the nation. Churning the economy and growing it are two different things. Therefore in GPI terms, the housing bubble would be deducted from the GDP figure.
Likewise the Iraq ar would be deducted. ar spending increases GDP dramatically, but death, destruction and erosion of goodwill are not "progress" as defined by GPI proponents. hen the negative forces that have propped up the GDP over the past eight…… [Read More]
Increases in manufacturing reveal benefits early, one can track the benefit at all stages and report the benefits to the public quickly. According to a statement released by the Center for American Progress, "solar panels don't install themselves. Wind turbines don't manufacture themselves. Homes and buildings don't retrofit or weatherize themselves. In our industrial society, trees don't even PLANT themselves, anymore. eal people must do all of that work." The public wants a quick fix, they want to start hearing that the economy is doing better and a focus on manufacturing will accomplish this. Additionally, there has been increasing pressure on the White House to focuses on alternative energy sources. Such a policy would gain favor with democratic and liberal environmentalists.
4. Do you consider your views to be more aligned with a classical or Keynesian approach to economic thinking? Explain. (There is no right or wrong answer). See module…… [Read More]
Jamaica and United States: An Analysis of GDP
Comparison of Jamaica and U.S. GDP
In 2009 U.S. dollars Jamaica's Gross Domestic Product (GDP) based on purchasing power parity registered at 23.76 billion (CIA Factbook- Jamaica). In contrast the United States of America produced a Gross Domestic Product of 14.12 trillion dollars in 2009 dollars (CIA Factbook- U.S.). espectively these figures translate to a per capita GDP of $8,400.00 dollars for Jamaica (CIA Factbook- Jamaica) and $46,000.00 for the United States (CIA Factbook- U.S.). Given the distinct disparities in GDP, an analysis of the components comprising the GDP calculation provides useful insight into the similarities and differences inherent in the two nations.
GDP is comprised of four components: consumption expenditures, investment expenditures, government purchases, and net exports. Taken in aggregate these components detail "the market value of all final goods and services produced within a country in a given period of…… [Read More]
The change in the United States Real Gross Domestic Product (GDP) ratings has shown both ups and downs in the U.S. economy over the last two years. In the most recent quarter, the first quarter of 2011, the U.S. GDP increased over 2%. hile the GDP has increased every quarter since mid-2009, the quarterly increase in each of the last four reported periods was weaker than the quarterly increase between mid-2009 and early 2010. Overall, however, the recent increases suggest the U.S. economy is recovering from the recent recession.
In 2008, as the United States was entering a period of recession, the real GDP decreased in three of the four quarters of the year, and increased only slightly in the fourth. The GDP trended downward from the beginning of the year, where the real GDP decreased by around 1% in the first quarter, to the end, when the…… [Read More]
1% and agriculture 6.0%. ("Jamaica," 2010) The U.S. is more heavily focused on services, with this accounting for 76.9% of the GDP. This is followed by: industry (coming in at 21.9%) and agriculture (accounting for 1.2%). ("United States," 2010)
The labor force of Jamaica is currently 1.311 million people. ("Jamaica," 2010) While the labor force of the United States is 154.2 million. ("United States," 2010)
Labor Force by Occupation
The labor force by occupation for Jamaica would include: 64% working in services, 19% in industry and 17% in agriculture. ("Jamaica," 2010) In the U.S. The labor force is divided differently with: 37% working in managerial / professional positions, 24.2% in sales / services, 20.3% in manufacturing, 17.6% in other services and .7% in farming. ("United States," 2010)
Population below the Poverty Line
The total population that is living below the poverty line in Jamaica is: 14.8%. ("Jamaica," 2010)…… [Read More]
One of the other key measures of our economy is the unemployment rate. This measure provides something of a counterpoint to a growing GDP. The unemployment rate increased in October 2008 to 6.5%. The ability to find meaningful work is a key component of GPI, yet the GDP can grow even if unemployment is high. One of the reasons is that the GDP does not measure wealth distribution. The wealth gap has increased over the past eight years. Average household wealth has increased, but the rate of increase is faster in the top quartile of households. Real wealth in the lower quartiles has stagnated. Again, the GDP would measure the wealth as having grown nationally. But over the past eight years wealth distribution has worsened. hile this clearly constitutes economic success for some individuals, it does not constitute economic success for the majority.
The current account deficit has continued to…… [Read More]
Economics - Country Analysis
Country Overview and Current Events (News)
Ethiopia, traditionally known as Abyssinia, is a landlocked Sub-Saharan country located at the Horn of Africa in East Africa, bordering Somalia, Kenya, Eritrea, Djibouti, Sudan, and the newly-created South Sudan. It covers approximately 1,126,829km2 of land; about the size of the state of Texas, and was, until the split of Sudan, the second-largest country in Africa. Being landlocked, Ethiopia largely relies on the port of Djibouti, to which it is connected by both rail and road. Economic elements such as this, together with the country's history, population, geography and economic performance have been explored in the subsequent sections of this text.
Population: the U.S. Census Bureau, in June 2013, estimated Ethiopia's population to be 93,877,025; a figure that makes the country the second-most populous in Africa, after Nigeria (orld Bank, Index Mundi). Ethiopia's population has been on a steady increase…… [Read More]
Rational firms will choose the lowest-cost option between the two. The market is expected to be efficient, so that while some firms will find it cheaper to pollute, other firms will find it cheaper to install pollution abatement mechanisms.
Ultimately, the system will seek to deliver the lowest per-unit cost of abatement. This will be achieved because the firms that are going to abate their pollution are the ones for whom the cost of abatement is lower than the cost of polluting. With these firms focused on their abatement efforts, they will deliver a greater degree of pollution abatement at a lower per-unit cost with the marketable permits than any other system.
To see the value in this system, the alternative must be considered. If firms are mandated to reduce pollution, they will do so to bring themselves under the maximum allowable pollution levels. However, firms will have no economic…… [Read More]
There are 346 cars per 1000 population in the country (The Economist, 2011).
Andorra has an adult literacy rate of 100%. Life expectancy at birth is 82.43 years and the infant mortality rate 3.8 deaths per 1000 live births. The unemployment rate is 2.9%. The country has 64,500 cellular phones for 84,825 people, a rate of 0.76. The rate of landlines is 44.6%. There are 67,100 Internet users, or 79.1% of the population. There are no figures given by the Economist of the number of cars in Andorra.
These figures confirm the hypothesis that Andorra, despite having a lower GDP per capita, enjoys a higher quality of life. It has fewer cell phones, for example, in part because it has better landline connectivity. ith respect to human measures, however, Andorra's superior literacy rate, life expectancy and infant mortality rates point to a higher degree of success in developing human successes.…… [Read More]
Germany has established itself as a successful country with a growing and stable economy. In terms of its economic policies, since 2014 its score has fallen by .2 placing it into rank 5 within the international top ranks. Of its many efforts to stabilize the country, the most notable is increased regulation, meaning pension-system expansions and a minimum wage (). Along with economic policies favoring regulation, Germany has remained strong in terms of employment growth and export performance, allowing for low unemployment rates and rising wages. While Germany has improved and stabilized, the rising influx of refugees has put a damper on the country's ability to create new policies for the labor-market.
Regardless, there are many positives in Germany's economic policies that has boosted tax revenue. The boost also comes in terms of reduction of debt-to-GDP ratio even with rising debt. Germany has done an amazing job of successfully addressing…… [Read More]
Turmoil and Instability of He 1970s
The subject of this study will be the 1970s. The 1970s were a turbulent time with several major events that influenced the economic growth. This decade was chosen because economists still argue about the causes of the economic downturn in 1973 and 1974. The oil embargo was blamed for many of the economic woes of the 1970s. However, there are some that claim that the oil crisis was fabricated and the situation was entirely fabricated by economic policy makers. The controversy surrounding this time period makes it an interesting subject of study.
How many goods and services a country produces is a good indication of the economic health of that country. The Gross Domestic Product (GDP) measures the production level of the country. Inflation and unemployment service to enhance the data obtained by the GDP and give us a good overall picture of who…… [Read More]
Since 1970, the economic growth in U.S. had increased in real terms at a rate of 3.16% per annum, up to 2001, when the American economy registered a slow down period and the economic growth amounted 1.7%. Since 2003, the growth rate averaged 4.62% per annum. Currently, the economic growth is heavily influenced by fiscal relaxation policy that led to increased investments and economic growth level. The average return rate on investment was of 14.6%, especially in the computer software and telecommunication sector.
The U.S. Labour Statistics office gives the data on the employment situation of the American society. This is important due to the fact that a high level of unemployment depicts the situation of a possible recession, while a low level of unemployment indicates that a certain nation cannot provide staff for the interested companies, and the labour force is insufficient for the demand on the market.…… [Read More]
As such, the amount repaid to the lender does not accurately reflect adjustments in its purchasing power. To compensate, nominal interest rates float; they change with inflation rates. Real interest rates, on the other hand, do factor in inflation rates. With this type of return rate, the borrower experiences an increase in purchasing power.
9. Cyclical unemployment arises out of a nation's reduction in productivity; it occurs when an economy produces less. Logically, this type of unemployment explodes during recessions and falls during times of recovery and/or prosperity; it follows the business cycle. Structural unemployment refers to a decreased demand of workers; it may be due to increased automation, outdated skills, or geographical incongruencies. Frictional unemployment occurs when workers are in between jobs; it is by nature temporary unemployment and reflects ordinary transitions in the labor market.
11. There exists a close relationship between technological change and the growth rate…… [Read More]
The industrial age was an age of giant, mega corporations that were often bogged down by inefficient and outdated distribution, innovation, and production techniques. y contrast, the information age of the past 20 years or so has brought forth a new business form, a fluid congregation of businesses, sometimes highly structured, sometimes amorphous, that come together on the internet to create value for customers and wealth for their shareholders. This phenomenon has been commonly referred to as "digital capital," "information technology revolution," or "new economy." However, as both the Dow Jones Industrial Average and the Nasdaq soared to historic highs and record volatility in just a few short years, a widespread and quite fundamental disagreement emerged concerning whether or not the high-tech boom was nothing more than one huge bubble.
This paper analyzes and examines the present condition of the United States economy. Part II discusses what phase of…… [Read More]
An interesting trend has been registered in the service industry, especially in the field of tourism. One of the main engines of Spanish economy in the past, now tourism in this country faces fierce competition from Eastern Europe countries. The beautiful resorts in Palma del Majorca and Costa rava must compete with low cost sea side resort, which offer similar services at incredibly low prices. Another field which needs reforms and reformulation policy is the agricultural and fishery one, which accounts only 4.1% out of GDP, although the important political forces attached to this sensible sector.
In order to be able to face the challenges and the opportunities on the regional and global market, Spain needs reforms in most fields of activity. Unemployment level is one of the highest in EU 9.2% at the end of 2005, while the rate of inflation was around 3.4 per cent in 2005, which…… [Read More]
.....gas station owners have no control over the price that they pay for petroleum, and only limited control over what they will end up charging the customer. The base price for crude oil is set on the basis of global supply and demand. Local prices reflect a variety of factor -- the crude price, cost of refining, cost of transportation, oil company markups and taxes (EIA, 2016). The price that consumers pay therefore reflects a variety of factors, almost none of which either the consumer nor the gas station owner has control over. This paper will discuss these factors in further detail, in order to clarify the dynamics of the oil market to better prepare to make a decision on buying four gas stations.
GDP Growth Rate
There are two dynamics at play here. First, the GDP of the area in which the stations are located influences gasoline consumption, by…… [Read More]
Note: current prices values are expressed in AUD billion.
Australia's Trade Situation
In the June quarter 2007, Australia's exports of goods and services increased by 0.5%, reaching the value of $54.6 billion. This increase follows a series of increases, as for the 2006-2007 financial year, exports increased by 10%, reaching $216 billion. egarding the volume of Australia's exports of goods and services, it increased by 0.8% in the June quarter of 2007, while for the 2006-2007 financial year, increased by 4%. The index of prices received for exports did not have an ascending evolution, since it decreased by 0.3% in the June quarter 2007. However, in the 2006-2007 financial year, export prices increased up to 6% (DFAT, 2007).
egarding rural goods, their exports fell 0.7% reaching $25.1 billion. The rural goods exports volumes fell 4% to 24.4 billion. The evolution of specific rural goods was the following: meat and meat…… [Read More]
The government of Canada has outstanding debt of approximately $550 billion. To service the debt, it issues bonds. The government has also announced previously that it is committed to fighting inflation. Please explain clearly how government debt management policy can lend credibility to the government's fight against inflation. In doing so, provide a clear explanation of the key differences between indexed and nominal debt.
hen a government wishes to curb inflation, one of the most effective ways to use the monetary supply to do so is to sell securities, in short through the sale of government bonds. By selling government securities, the government takes money or liquid capital out of the economy, and makes it more attractive to save rather than to spend money. Also, selling government bonds can reduce government debt. Reducing government debt is an important goal for any administration because the higher the debt, the less that…… [Read More]
The economic environment of Greece is that of a capitalist economy, but with significant public sector contribution – about 40% of total GDP is from government activity. This speaks more to the relatively small size of the Greek private sector than to excessive government ownership of industry. Tourism is one of the major drivers of the Greek economy, accounting for 18% of GDP (CIA World Factbook, 2017). Thus Greece would be characterized as a mixed economy with some government-owned entities. Greece is a member of the EU, but has also received several bailouts in recent years, and struggles with tax collection, and overall economic development. Tax evasion ranges between 6-9% of total GDP in Greece, which makes it a significant economic problem (Georgakopoulos, 2016).
Recent Macroeconomic Data
In recent years, Greece\'s economy has flatlined. The country has received several infusions of capital from other EU countries, but there…… [Read More]
Global Economic Conditions
Apple operates in over 100 countries already, but there are still some markets available for the company. The one that has been chosen for the next international expansion in Myanmar. Apple already has a presence in most other Southeast Asian countries, but Myanmar has only recently become a democracy. It is a poor country, but relatively large, and is starting to see some strong economic growth. Foreign companies are starting to make their market entry. The trends for Myanmar are all quite recent. Five years ago there was little economic activity in the country, regular brownouts and a military junta. Today, there are signs of economic life. Moreover, where five years ago there was almost no broadband and it was prohibitively expensive, broadband in the country has been rolled out to most populated areas and is affordable.
Myanmar\'s economic story is mostly internal, but there is some…… [Read More]
Exports are also down significantly, yet despite these changes, the Chinese economy appears to be "independent and strong enough to not only cope with the global economic crisis but also to establish itself" as a major world economic powerhouse ("China Economy," 2009, Internet).
One of China's greatest economic strengths is based on foreign direct investment, for the World Bank estimates that around $80 billion U.S. dollars are invested in China on a yearly basis. However, one of its most important weaknesses is the existence of corruption at the local level, a situation which the Chinese government has attempted to eliminate through a slow and long-drawn out process. Nonetheless, economists predict that China, "via a sustained rate of growth will enable it to surpass the U.S." To become the world's largest and most powerful economy sometime in the early years of the 21st century ("China Economy," 2009, Internet).
As to unemployment…… [Read More]
With the Fed shifting from quantitative easing (QE) to quantitative tightening (QT) in recent years, and the end of unconventional monetary policy, interest rates are set to continue to rise as the central bank reduces its balance sheet. With bond yields already going up and volatility at all-time lows, questions remain about how the market will react to this normalization process. One thing is for certain, however: the recent rise of prices across several asset classes has coincided with the years of QE beginning in 2008. Home prices have soared, bond prices have soared, equity prices have soared, college tuition has soared, and even precious metals have soared (along with cryptocurrencies in recent months). While some commentators are alleging that we are now in the “everything bubble,” the reality is that what is being seen is really nothing more than inflation in the works. The trillions of dollars of liquidity…… [Read More]
However, the recovery has not, as some might expect, included improvements to the unemployment figures or an increase in inflation. The unemployment figures can be explained partially in that unemployment is considered to be a lagging indicator. Inflation, however, is not a lagging indicator. As such, it would be expected to increase if the economy was increasing strongly, given that interest rates are very low. Not only is inflation not increasing, but it is decreasing, and long-term interest rates do not indicate that that the U.S. needs to be concerned with inflationary pressure either.
The case for fiscal stimulus is that government spending is going to increase the GDP. Given the equation GDP = C + I + G + X -- M, we can understand that consumer expenditures are going to remain relatively low in the current economy as the result of the high rate of unemployment. Business investment…… [Read More]
In terms of output and growth, Canada's real GDP was 2.96% higher than it was a year ago, but the growth trend is slowing down from a growth rate high of 3.81% in Q3 2010. Japan's economy has contracted in Q2 2011 by 0.76%. It's rate has been volatile, growing rapidly over the past year only to contract again. The UK's growth rate is 1.63%, and that country has had fairly stable, if sluggish, real GDP growth. The current GDP growth rate in the United States is 2.33%. Real GDP growth is on a downward trend in the U.S. But has maintained healthy levels since Q4 2009.
All four countries were affected by the recession. Each experienced real GDP declines during the 2008-2009 period. Japan was the hardest hit. Yet each nation recovered in 2010, only to see the rate of economic growth slow again in 2011.
Canada…… [Read More]
remedy for the U.S. economy as the country has started to recover from the shock of September 11. Though the tragedy of September has drastically effected the economic growth of the country but the forces of recovery will soon lift the economy out of the recession. However, this turnaround is going to go a long way. The general opinion about the economy of the United States is that the recession will end around the first quarter of the year 2002 and the growth in real gross domestic product for the year 2002 is expected to be about 2.5% which will be definitely a huge achievement. However, this growth is expected to be slow but with a constant pace. According to the economic analysts the real GDP growth will pick up by the second half of the year 2002 and therefore most of the investors are expecting a reduction in the…… [Read More]
Eurozone Maastricht Treaty
Euro zone Treaty
The European Community established the convergence criteria. These criteria was established in order to allow its EU Member states to take part in the Euro Zone, and using the Euro, as an official currency. The members of the European Union formed the Maastricht Treaty in 1992. The principle goals of the treaty were to establish an economic and monetary union, strengthen the democratic legitimacy of its institutions, better the effectiveness of its institutions, come up with the community social dimension, and also establish a unified foreign and security policy (Charles 1998).
The criteria contain several principles governing inflation rates, government finance, exchange rate, and long-term interest rates. The percentage points for inflation rates should not be 1.5 higher than the average the top three members states in performance of the EU. Government finance covers both the annual government deficit and the government debt. Under…… [Read More]
Education and Fertility ates
Fertility and Educational Attainment
Women around the world are starting to become more empowered through higher education attainment levels. Millions of women are now finding more educational opportunities at their fingertips, which empower them as well as the economic capacity of their respective nations. Yet, education also has an impact on fertility rates; as education levels rise, fertility rates tend to decrease. Nations with higher education expectations thus tend to have women with decreased fertility rates and who tend to have children at much older age groups than in nations where there are less educational opportunities for women.
Education is a major factor of improving a woman's quality of life. At the same time, education also impacts the rate at which women give birth. The research suggests that "educational attainment has long been considered the most important measure of socioeconomic status in describing fertility differentials" (Center…… [Read More]
Economic Events: 1980-1989
the decade of greed. The era of onald eagan when the rich got richer and the poor got poorer. Despite this common wisdom, 1980 started off auspiciously. On May 8, 1980 the World Health Organization hailed "one of the century's greatest medical accomplishments," the final and total eradication of smallpox (Dickson 247). But how quickly times change - barely a quarter century has passed and this same disease is making headlines once again.
Attitudes change also. While many in this day and age would still agree that the 1980's was a selfish period in American history, a sea-change has occurred in the rhetoric issuing forth from Washington D.C. In a very fundamental way, party politics has been thrust aside as concerns for homeland security take precedence over petty partisanship. Michael Barone notes this in his analysis of a speech made by Democrat ichard Gephardt in the Summer…… [Read More]
China's Economy During and After the Economic Crisis
All of these factors created major growth for China for the three decades following the beginnings of its economic reforms, and then the financial crisis hit. China began the twenty-first century with a growth rate of 8.4% in 2000, peaking in 2007 with a 13% growth rate (IMF 2010). In 2008, this rate fell to 9.6% -- a significant drop, but still a significant growth rate as well (IMF 2010). The estimated growth rate in 2009 showed a slower drop to 8.7%, and forecasted growth in 2010 showed the rate climbing back up to 10%, with an average rate for the decade still at 9.9% despite the hiccup caused by the global downturn (IMF 2010).
A large reason hat China was so insulated form the economic shock that was so devastating in other parts of the world was because of the swift…… [Read More]
The National Housing Act indirectly promoted the idea of lenders offering much longer-term mortgages with the currently accepted concept of monthly payments with the dual interest and principal payment scale. Amortized real estate mortgages opened the door for an average person to purchase and own a single family home.
As a result of the National Housing Act, the United States government inadvertently committed itself along with private lenders to insure long-term mortgages that could be held for as long as twenty or more years at an interest rate that was affordable. Although the process at first was bogged down by paperwork and bureaucracy it eventually caught on.
Part of the reason the process took hold was because in addition to guaranteeing the loans, the National Housing Act through the formation of the Federal Housing Administration also investigated properties and neighborhoods which added an extra measure of security and guaranteed real-estate…… [Read More]
As a means to gain access to several million people who live a estern lifestyle, South Africa can be a good country to enter, but as a growth story it is much less exciting. Only when the GDP per capita of black and mixed-race South Africans begins to grow rapidly will the country be a truly attractive one for most companies. Arguably, the Human Development Index is a better measure, because it can reflect the overall potential of a nation like South Africa, where the development of one segment of the population is more critical to the market's potential than GDP, which is driven by another segment of the population.
A fourth reason why average per-capita income is not always the best indicator of an emerging market's potential lies in the Gulf States. Many Gulf States have very high average GDP per capita figures, driven by oil revenues. The lifestyle…… [Read More]
Briefly outline the five macroeconomic objectives governments generally seek to achieve
In each economy, the government always put forward some five macroeconomic objectives, which will help in keeping track of the economic growth. The five macroeconomic objectives are increase economic growth, control of inflation, reduction in unemployment, more equal distribution of income, protection of the environment.
Increase in economic growth
Increased economic growth acts as an agent for increased living standard which is always the aim of every government. The governments always seek in increasing the job creations to offer a source of income to the citizens. The government can only achieve this if it put forward strategies for increasing the economic growth. The increased economic growth has a direct relationship to the expansion of national production which acts as a prerequisite for economic development (Jonkhoff, 2011). The government also aim in increasing the national economic growth because…… [Read More]
GDP went down due to weak domestic demand, which went further down after a decline. Somehow, it again rose by 0.1% in the first quarter and appeared to have pulled the economy out of recession. ut Portugal retained big trouble. In the last quarter of 2002, its GDP plummeted.8% from the third quarter and in the last quarter, it contracted by 1.3% from the previous year until the.3% in the third quarter of 2002. The economy continued to sag until the ank of Portugal itself observed the fall of business confidence to its lowest recorded level since the 1993 recession. Official unemployment rate increased to a high 49.6%, rising by 26.3% from 2001 (O'Flynn).
Unemployment was 6.7% in 2003, compared with 4.3% in 2002 (O'Flynn 2003). Labor unions in Portugal claimed it was more than 7.6% as against the 5% ceiling set by the EU, despite the fact that the…… [Read More]
It was the smallest monthly jobs growth since August 2003, when only 2,000 jobs were added, according to revised figures from the Labor Department.
6. How does the current structure affect the threat of cost push inflation or deflation?
There are no inflationary or deflationary signs in recent reports.
7. What is the growth rate of GDP?
The current growth rate of the Gross Domestic Product (GDP), which is the output of goods and services produced by labor and property located in the United States, increased at an annual rate of 3.5% in the first quarter of 2005, according to preliminary estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 3.8%. The major contributors to the increase in real GDP, in the first quarter were personal consumption expenditures, private inventory investment, exports, residential fixed investment, and equipment and software. Imports, which are subtracted from…… [Read More]