Macroecnomics

ECON 2301 Principles of Macroeconomics Time: Th 7:05 pm – 9:45 pm Synonym: 40512 Section: 023 Room: NRG2 2120

1. If an economy produces final output worth $5 trillion, then the amount of gross

“THUMP! THUMP!” A soft thumping sound came from May’s room upstairs. She glanced up from her dinner plate, curious as to what was causing this noise. Her father, Jack, however paid no attention to this disrupting noise. He was too engulfed in reading the news from his phone. May chose to speak up. Since the thumping noise had yet to cease.

The paper is the Evaluation of Macroeconomic performance of Australia and US from 1990 to 2013. The Australian economy has encountered persistent development and components low unemployment, contained swelling, low open obligation, and an in number and stable budgetary framework. By 2012, Australia had encountered over 20 years of preceded with financial development, averaging 3.5% a year. The US has the biggest and most innovatively capable economy on the planet, with a for every

The study and application of macroeconomics influences the well-being of a nation by achieving high rates of material production and by keeping track of how much of something is being consumed. The United States is one of the wealthiest countries in the globe, making the government powerful. Government intervention in the Untied States is an important factor that keeps the economy running. Enough power to control the business cycle keeps money circulating the nation. The business cycle includes economic downturns, classified as recessions, expansions, business-cycle peaks and troughs. A good government is essential for the economy to run smoothly. There are three main macroeconomic variables in the nation that the government focuses on, Gross Domestic Product (GDP), unemployment rate, and inflation rate.

The current macroeconomic situation in the United States is making a significant improvement due to the increase of productivity, 4.6 percent economic development, and with unemployment at 5.3 percent. But despite these positive results, many difficulties are still incoming locally and worldwide.

21) Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming

Chapter 5 is about consciousness of the inhabitants of this Party-dominated world both by having them speak and by showing their subtle reactions or acceptances to the situation. One of the examples of this is Syme's explanation of Newspeak, which is supposed to be in use by 2050, when all Oldspeak should be phased out. The theme of destruction as control is shown when Syme speaks of the elimination of words. Syme anticipates the day when the Revolution will be complete and when Oldspeak will be completely phased out and unintelligible. Winston points out that the "proles" will be able to understand Oldspeak, but Syme says that "The proles are not human beings," showing a similar pyramid scheme to the one in Brave New World.

Q1. The article “What Big Economics Got Right, or Wrong, After Crises” discusses the reason that U.S. and U.K. have made better progress compared to Japan and Europe did since the 2007 global financial crisis.

* McConnell, C., Brue, S., & Flynn, S. (2012). Macroeconomics: Principles, Problems and Policies, Nineteenth Edition. McGraw-Hill Companies, Inc.

The following charts highlight the economic data of the US, Japan, Canada and the UK over the 2008-2011 period, illustrating the change in the different economic measures, from the St. Louis Fed International Trends Publication,

Human beings are social creatures, therefore have an innate desire to be accepted as part of a group, which delivers a sense of safety and security. Once accepted into established groups, intimidation can sway individual attitudes and behavior towards conforming to group norms, resulting in discouraged creativity, and decisions void of critical thinking. Because team-based structures are popular in today’s companies, it is important for managers to understand how to avoid conformity pitfalls. When utilizing team leadership theory, managers can mitigate negative consequences that group conformity instigates, by offering a leadership style that facilitates team member autonomy, creativity, healthy debate, and openness to new ideas.

For different purpose, the different GDP frames will be used. “Real GDP is the value of final goods and services produced in a given year when valued at the prices of a reference base year; Nominal GDP is the value of final goods and services produced in a given year when valued at the prices of that year. The maximum level of real GDP that can be produced while avoiding shortages of labour, capital, land and entrepreneurial ability that would bring rising inflation is called potential GDP (McTaggart, Findlay & Parkin, 2012).” In this essay, GDP stands for real GDP, and real GDP can be calculated by either the expenditure approach or the income approach. In this essay, the expenditure approach will be used. Aggregate expenditure describes the relationship between total consumption and national income. It can be calculated with a formula: AE = C + I + G + NX. In this formula, the C stands for household consumption, the I stands for investment expenditure, the G stands for government expenditure and the NX stands for net export expenditure. The change of these components will eventually affect real GPD. The expenditure approach is important because it can tell the government of consumers’ demand so that the government can better allocate resources. It can also convey the economic situation signals to the central bank to help them to carry out macroeconomic regulation and control. The figure 1 below shows the aggregate expenditure

Constantly changing, the world economy will never be the same as it was a year ago, a month ago, or even a day ago. It might repeat itself in a similar manner or proceed in cycles but because of globalization it never stagnates and there is endless activity. Two hundred years in the past, our society and economy was radically different and went through multiple phases to reach where we are today. Though the boundaries of these phases cannot be specifically defined, the world economy from 1850 until present day can be roughly split up into three different stages. The first stage being British dominance, the second being American domination, and lastly globalization

6. Why do economists use real GDP rather than nominal GDP to gauge economic well-being?