Macroeconomics

If you are an outside firm looking in, most are not excited about the potential venture however, the South African government welcomes and tries to encourage the investment. Even though macroeconomic conditions have generally improved in the nation, FDI has remained low in the post-apartheid era. Natural resources and a large market size make the area appealing, yet investors are hesitant. Over a period between 1994 and 2002, FDI made up less…

In most modernized democracy, U.S. and West European countries, there exist of government influences that revolve around social and economic policies. Social polices mainly concerns of ideals that directly promote the well-being of every individual in society; most social policies tend to target different groups involved, with the opinion of existing biased towards the wealthy (Greenberg and Page 2007, p. 414). Economic policies are policies with the ideal of improving the welfare of individuals…

Greece’s own terms. Bailout equals austerity. But the price is higher taxes and spending cuts that will benefit international creditors. These austerity measures will have very predictable effects on the Greek economy. Austerity is the new dominant macroeconomic zeitgeist, having supplanted Keynesian economics. Austerity has become the policy of choice anywhere when economies are in trouble. It is also the policy of choice in a segment of the U.S. polity. This capitulation is a mind-blowing turn…

Economic growth is increase in the goods and services produced by an economy, typically a nation, over a long period of time (Economic Growth, 2018). Economic growth has different theories which are classical theory, neoclassical theory and new growth theory. The classical theory is a combination of economic work done by Adam Smith, David Ricardo and Thomas Robert Malthus in the eighteenth and nineteenth centuries. The theory stated that economic growth will end up due to the population growth…

Even when working on projects unrelated to health, the policies and actions of economic institutions have an impact on health in the countries in which their policies are enacted. Macroeconomic activities are strongly correlated with health outcomes; for example, a rise in the health of a country’s population may lead to an increase in economic output, or vise versa (LSHTM (b) 2014). Economic programs that increase wealth, productivity, and/or trade can impact both infectious and…

My economic autobiography will focus on my economic decisions, and that of the governments, during the time period of 1993-2003. I’ve focused on four of the most important decisions I’ve ever had to make, to quit my job, buy my partner out of our business, close the business and finally the timing of buying my current home. My first major economic decision was in 1993; my employer Ameritech, who at the time was the main provider of telephone service in the Midwest, proposed to end its local…

1. According to John Maynard Keynes, what is the cause of economic downturns and what is his prescription for them? Economic downturns according to John Maynard Keynes are caused by insufficient aggregate demand. The total demand of goods and services goes down, meaning the reduction in goods and service consumption, impacts negatively on production and employment matters. Falling income and aggregate demand are the consequences of insufficient demand. Saving is not good for the economy because…

2.1 The Rational Expectations Hypothesis The rational expectations hypothesis is the hypothesis that, when forming expectations about any variable, people will make optimal use of the available information. This information includes the actual value of certain variables and, more widely, the nature or structure of the world in which people are operating. Let the value a variable ‘y’ takes in period t depend upon, or be a function f (.) of, the value of other variables, x1, x2 and x3 have…

Employment As An Indicator The decision use of employment as an indicator in this report was based on the quality of information available by the Census Bureau. While current sales and revenue data exists for most sectors as of 2012, the quality and availability of the data degrades over time. To complicate matters further, there are large holes in the available two digit NAICS sector data. In order to get consistent and accurate data this report uses employment as an economic indicator.…

Introduction Inflation is defined as the sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer buys fewer goods and services. Accordingly, inflation reflects a drop in the purchase power per unit of money, a loss of real value in the medium of exchange and unit of account within the economy. A major measure of price inflation is the inflation rate, the annualised percentage…