Keynesian economics

devastations of war.” (Keynes, “World Economic Outlook” 1932). Progress in spending on the “enterprises of peace” since Keynes’ time has been minimal. At this point, military spending has become so ingrained into the annual budget, that questioning military spending is not commonplace in mainstream economic discourse. The U.S. treasury divides all federal…

are various individuals who have carried out various kinds of efforts in the field of economics. One of the individuals who have been involved in making efforts in the field of economics is John Buchanan. Here, discussion shall be regarding the efforts made by the individual in the field of economics and the areas which have been taken into consideration by him over the period of time regarding the field of economics. Introduction The present paper is in relation to an individual who is an…

people who have impacted the world with their different economic point of views. Many of those people have made a vital impact on the world. Today I will be discussing two great economists of all time John Maynard Keynes and Friedrich Von Hayek. The beliefs for a better economy have forever changed the world of economics due to these two men. The book General Theory of Employment, Interest and Money written by Keynes changed the course of economic thought with its questionable understanding of…

or hurt the economy. The “Great recession” (2008-2012) has been used as an experiment for economists to understand how government stimulus and austerity programs affect the economy, especially during economic downturns (Matthews 2). Ed Dolan, a former economics professor who holds a PhD in economics from Yale University has said the question of whether government spending helps or hurts the economy has even been a hot topic in the U.K…

Colombia For Colombia, the year 2008 was characterized by a decreasing economic growth. This was generated by a number of factors, the key ones being the contractionary policies on the monetary and fiscal spheres, and the great financial crisis (G.F.C.). According to the Banco de la Republica (Colombian Central Bank), “The international crisis hit Colombian economy in a moment when the economic dynamism was already decreasing, after years of rapid growth. This slowdown is the result of a…

Arthur Laffer, the creator of the “Laffer Curve,” introduced the idea that decreasing the size of a tax will eventually lead to an increase in tax revenue (Porter, 2017). This idea is vital to economics today. Also, the idea of efficiency and equity is discussed, which is also a major topic in economics. It is stated that cutting taxes for the rich does not foster any more growth or productivity. Porter (2017) also claims that there is actually…

Equilibrium unemployment and disequilibrium unemployment are the basic categories of unemployment to apply on the total labor that the whole economy has (Sloman). Equilibrium unemployment is the difference between people that want to take the job they are offered and people that are willing and able to take the job. Disequilibrium unemployment occurs when the aggregate demand for labor is less than the aggregate supply of labor. Recently an analysis conducted by the Bureau of Labor Statics of…

The economic factors in which Adidas has to face are also very significant. Adidas manufacturing is a risky component of their industry since they are dealing with several countries which adds vulnerability. Aspects such as economic growth and interest rates are major components in this situation. Interest rates may significantly increase in some countries, causing prices to increase, and therefore, demand to decrease. Yet, if interest rates significantly decrease in these countries, more…

Explain how current economic indicators, such as inflation and unemployment, affect you personally. In addition, explain how they may affect you as a supervisor, manager, or a business owner. In order to understand how the current economic indicators would affect me I must first understand inflation and unemployment. Unemployment to me is defined as not having a stable job or career that is bring in income on a regular basis. Inflation is defined as the rise in consumer goods over a period of…

1. What is the difference between micro and macroeconomics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one. A) The difference between micro and macroeconomics is that microeconomics deals with how individuals and firms make decision in the face of scarcity and the impacts of the decision on the market. Hence, microeconomic focus on a part of the economy of a country. While macroeconomics deals with how a nation makes a decision in the face of scarcity and…