Wednesday, May 6, 2020

Macroeconomic Policies And Its Effects On The Economy Essay

Economic experts always try to find the best forms to stabilize the economy. Macroeconomic policy is usually a customary of procedures and principles that the government makes to control the comprehensive pointers of an economy surrounds. Fiscal and monetary policies are normally the set of tools that it is used in macroeconomics. Fiscal policy is the decisions on the economy and it influences many variables that include inflation, employment and economic growth. Monetary policy is the parameter of money source to impact the economy’s wide fluctuating for instance as inflation, employment, and economic growth. Macroeconomic policies have an effect on the people and the society, because the decisions and regulations that the government creates it can affect small family business or even a house that is a shelter for a family. Economic fluctuation is defined as the increase and decrease of financial activity virtual to the long-term development drift of the economy. The method that these variations work is by the ups and down commonly including the nation as a whole and frequently several other economies all over the world, and they disturb practically all extents of economic activity. Under this economic fluctuations we can explains some terms that include expansions, contractions, depression, recession, and inflation. Expansion is the time through which the economy develops as cast back by skyrocketing the output, employment revenue, and other aggregate measures.Show MoreRelatedThe Effect Of Macroeconomic Indicators On Economic Growth On A Petrol Dollar Economy Essay1391 Words   |  6 PagesTHE EFFECT OF MACROECONOMIC INDICATORS ON ECONOMIC GROWTH IN A PETROL-DOLLAR ECONOMY: THE NIGERIAN EXPERIENCE 1. Introduction The Central Bank of Nigeria Act of 1958(CBN) vested the monetary policy powers of economic stability on the apex regulatory bank (CBN).Since our independence in 1960,CBN has operated a fixed exchange regime which was at various times was at par with the British pounds and later the United States Dollar. This exchange rate regime was operated in additionRead MoreFinance Is Based On Economics841 Words   |  4 Pagesneeds by humans. Macroeconomics started with John Maynard Keynes, an English economist, who published a book entitled General Theory of Employment, Interest and Money in 1936. Keynes offered a clarification for the fallout from the Great Depression, when goods remained unsold and workers unemployed, a feat that left classical economists stumped. Keynes theory explained why markets may not clear. This theory evolved throughout the 20th century, diverting into several macroeconomic schools of thoughtRead MorePolicy Review And The Lucas Criticisms Essay919 Words   |  4 P ages Policy Review and the Lucas Critiques Orthodox Keynesian economists believe that the change of the money supply will lead to the change of effective demand, and further result in the change of the economy. However, in the monetary economy cycle theories, the expected monetary supply changes will not influence the total economy; the unexpected money supply changes will impact the total economic in short term. In the long term, it merely impacts the changes of general price levels, instead of onRead MoreThe Economic Schools Of Thought1445 Words   |  6 PagesFreshwater Economics Macroeconomic schools of thought would be prudent to accept certain aspects of the views of other schools of thought to better understand the scope of economic efficiency through the use of various models aimed at understanding the implications that all actions affect outcome. Like other economic schools of thought, Freshwater developed from previous schools of thought as new macroeconomic ideas were discussed and disputed. Neoclassical synthesis was a postwar movementRead MoreEconomics Affects Our Daily Life1576 Words   |  7 Pagesaspects of economy analyzes and studies production, factors of production, demand and supply analysis, consumption, distribution, market structure etc. Question 1 Economics can be classified into two main branches, which are macroeconomics and microeconomics. Macroeconomics refers to study of economic aggregates (aggregate demand, aggregate supply etc.) while Microeconomics refers to study of behavior and performance of individual parts of economy such as firm or household. Macroeconomics MacroeconomicsRead MoreNew Classical Macroeconomics Arose From The Monetarism And Rational Expectation School Essay922 Words   |  4 PagesIntroduction New Classical Macroeconomics arose from the Monetarism and Rational Expectation School in the 1970s and follows the tradition of classical economics. If the market mechanism is allowed to play its role spontaneously, which could solve the unemployment, recession and a series of macroeconomic issues. Keynesian economists believe that changes in the money supply will lead to changes in effective demand that will changes in the total economy. For economic cycle fluctuation, Keynesian economistsRead MoreIntroduction And Literature Review : The Decline Of Economic Conditions881 Words   |  4 Pagessuccessive inflation in interest rate, thus â€Å"plunging the country into† the worldwide economic recession (Ruddy, 2006). The annual GDP growth rate dropped below 1% along with the significant downturn in U.S. housing and the stock market. From 2002, the economy started to recover from the recession: the GDP growth rate slightly increased every month, the monthly house price index in creased and the SP index increased with an approximate one year lag. The year 2002 and 2003 are the â€Å"golden age† of recoveryRead MoreThe Theory Of Macroeconomic Analysis Deals With Economic Aggregates1229 Words   |  5 Pages The theory of macroeconomic analysis deals with economic aggregates. This theory is very critical and important in decision making by planning agents in the economy (Mankiw, 2010). Macroeconomics analysis is of great and paramount importance to the three entities that comprise of any economy who are the households, firms and the government institution. The households in the economy are majorly interested in the macroeconomic analysis to determine and know how a slight change in general priceRead MoreRelationship Between Macro Environment And The Demand For Dairy Product1342 Words   |  6 Pagesbetween the performance of the macroeconomic environment and the demand for dairy products. To begin with, the demand for dairy products are influenced by several factors, for example, the price, price of substitutes, income and demographic effects (Heien and Wessells 1988). Excluding the population factors, the other factors could be affected by macroeconomics. According to Erten and Ocampo (2012), the commodity prices are related to the situation of the macroeconomic. Also, the income distributionRead MoreNarrative Interview : The Global Economic Climate During The 2008 Global Financial Crisis ( Gfc )1083 Words   |  5 PagesTrainor as the ideal candidate to provide a comprehensive recount of the global economic climate during the 2008 Global Financial Crisis (GFC). And how his experiences of economic fluctuations and policies during the GFC changed his perspectives and understandings of macroeconomic decisions, as well as their effects on the modern world. At the time of the Global Financial Crisis, James was the Global Head of Employment Tax for the Macquarie Group, o ne of Australia’s largest investment banking institutions

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.