Macroeconomics

Macroeconomics Assignment Name Institution Macroeconomic Assignment Question 1 (a) A reduction in interest rates is an expansionary move in the sense that it makes borrowing cheaper. A decrease in interest rates, therefore, will lead to an increase in investment but in the process leading to a reduction in the levels of saving since there will be a reduction in the incentive to save. The effects of this action will affect both the consumer and the producer as follows: The Consumer:…

Nick Rhodes Econ 209: Principles of Macroeconomics November 11, 2017 Homework #1 1. Economic Concepts and Issues a. Wage Growth Increase b. Janet Yellen’s Job Security and The Fed Funds Rate c. Donald Trump’s Border Tax 2. How the Economy will be effected and how these issues will be addressed. a. For the first time since 2009 the wage growth is growing faster than it ever has showing promise for President-elect Donald Trump and the labor market. Ever since the recession the economy has been…

Macroeconomics is concerned by the overall economy and large scale economic decisions such as fiscal policy, investment and interest rates. Both classical and Keynesian macroeconomics are considered to be mainstream schools of economic thought, meaning that they both view the economy in relation to individual actions (whereas heterodox economic theorists argue that the economy is too complex to be reduced down to analysable individual behaviour). However, although classical and Keynesian…

Solow-Swan model was named after Robert (Bob) Solow and Trevor Swan, or simply after the more famous of the two economists as Solow model. This model is remarkably simple and has also shaped the way we approach economic growth as well as the field of macroeconomics. Before the advent of the Solow Growth Model, one may fail to appreciate the intellectual breakthrough that it was; as then, the most common approach to economic growth was with reference to the Harrod-Domar model. Solow was…

1.3 The impact of macroeconomic releases on exchange rates Economic releases have an important role in the foreign exchange markets. Indeed, macro announcements produce effects on both returns and volatility. Neely and Dey (2010) show that researchers have long studied the reaction of foreign exchange returns to macroeconomic announcements and by doing so, they are now able to infer how markets react to news and how order flow helps impound public and private information into prices. Also,…

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…

When it comes to the Keynesian model of macroeconomics, this model was first introduced to the world by a British economist named John Maynard Keynes. This model of economics stressed about how in the short-run, and especially during a recession, economic output is strongly influenced by aggregate demand. Another ginormous factor to this model of economics would be that Keynesians don’t believe in self-adjustment. They believe that in order for the market to be able to come out of a recession…

learning macroeconomics, one can understand that there is limited supply but unlimited want. A company only has limited raw material, so in order to compensate for the amount of want from the public this specific company may have an initial public offer (IOP), increase its warehouse and manufacturing sites, or even allow the company to be absorbed into a larger franchise. However, looking at one company’s actions constitutes as microeconomics. To under the relationship to macroeconomics we have…

Shaw, Michaela Macroeconomics Mrs. Marie Guest October 16, 2015 The Struggle to Sell Amazon is a massive internet retailer that sells all sorts of products to people all around the world. Not only does Amazon sell retailed goods, but they also sell goods and services that they have created themselves. One of Amazon’s hot products is their tablets such as the Kindle Fire and the Fire smartphone. These products ring up at a relatively high price of around ninety nine dollars. Amazon is now…

The decision to purchase a car by an individual a number of macroeconomic variables. These variables play important role in making individuals to either demand more of cars or less of them or also act as supply drivers since producers base their supply and production activities on these factors. Some of the economic factors that affect the aggregate demand of cars include unemployment rates, real GDP, inflation rates, interest rates and housing starts amongst others. This paper shall therefore,…