Tag: macroeconomic

Macroeconomics Essay

Macroeconomics Essay

This essay lays more focus on three variables of the GDP equation that is consumption expenditure, investment and net exports. The essay fails to discuss the fourth variable that is, impact of the Government expenditure on the GDP. GDP is the sum of all the four variables that is GDP= C+I+G+(X-M). The essay throws light on the recession effected UK with little hopes of a speedy recovery. The negative demand shock is one of the major factors which have created a vicious circle resulting in negative growth of GDP. The consumption expenditure has particularly reduced. The people are looking to pay off their high debts after decades of huge spending and unemployment has further reduced expenditure. Such a sluggish demand causes the inventory buildup. This takes away all incentives from the producers to increase their supply. The banks have lost faith on the businesses; even if there are green shoots for the businesses to invest, the credit is not available. Credit less recoveries are characterized by weak rebounds. Thus, the two factors needed for a significant rebound-spending and lending are still missing in UK.

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Macroeconomic Management Essay

Macroeconomic Management Essay

Most governments in the world are trying to achieve economic stability because it is highly regarded as the prerequisite for attaining high levels of economic growth to meet the needs of every individual. The economic growth is measured by governments in terms of the annual change of real Gross National Product (GNP) per capita. GNP is sometimes replaced by Gross Domestic Product (GDP) in calculating growth because GDP is used worldwide to compare the progress of each country towards prosperity (Briscoe 2008). Economic growth allows every country to produce higher standards of living and more wealth. The strength of the economic growth generally impacts the construction industry because there will be an increase in the level of fixed investments in buildings, dwellings, and infrastructure (Briscoe 2008).

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Macro Mechanics: From Macroeconomic Shocks to International Finance Essay

Macro Mechanics: From Macroeconomic Shocks to International Finance Essay

In a democratic country based on a consumer economy it is uncertain what role the government should play in setting financial ground rules. However, in the light of recession macroeconomists often take a extra look at the patterns, policies and practices which have led the country into hard times in the past.

Chapter 10 deals primarily with three principles which can lead to recession. These principles include a decrease in the demand for aggregate (Aggregate Demand for Funding or ADF), a decrease in ASF (Aggregate Supply for Funding or ASF) and an increase in Gross Domestic Product or GDP. These principles are illustrated in four case studies which follow how they impact the economy as a whole.

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