Macroeconomics Essays

Global Recession and Its Impact on Pakistan Economy

Abstract There has been speculation that American would lead global recession and it could impact the global economy. IMF also predicted that in 2008 global growth would fall from 4.9 percent to 4.0 percent. US economy suffered thousands of layoffs and the biggest retail sales dip on record. Strong economies as that of UK, Germany, France and the new emerging one’s like China and India also fell pray to this recession. Rising prices of oil and different commodities along with…

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Impact of Public Debt Burden on Economic Growth of Bangladesh

Abstract Bangladesh is relying heavily on public debt to meet the budget deficit since its independence. In this paper, the objective is to find out whether the government of Bangladesh is excessively borrowing from the public sources and thus negatively affecting the economy of the country. For this purpose GDP growth rate (GDP), manufacturing sector growth rate (MANF), investment as percentage of GDP (INV) and Export as percentage of GDP (EXP) have been selected for judging the impact of public…

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Solar Panel

INTRODUCTION When thinking of starting a contracting business for solar panels, many economic issues and concerns play a factor in the decision making process. Having a concern for the environment and knowing that solar panels have a cost saving for both households and business seems to be reason enough to start a business. However, before making such a financial investment you should first take a look solar panels in the economy in terms of (i) GDP growth rate, (ii) interest…

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Impact of the World Economic Recession on Tax Administration in Ghana

2.1 Theoretical Review The use of domestic resources for development purposes is becoming more and more important as access to foreign resources becomes increasingly difficult. It is the current global financial crisis and the subsequent recession that are generally expected to make access to foreign resources more difficult. Ironically, however, these are possibilities of the global recession affecting the mobilization of domestic resources. “Domestic resource mobilization refers to the generation of savings from domestic resources and their allocation to socially…

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Meubles Canadal_ Looking Towards the Future

Introduction Meubles Canadel is Canada’s leading manufacturing firm in producing high quality furniture for dining purposes and was established in 1982 by three brothers in Louisville, a small town in the province of Quebec in Canada. It is a privately own company and established itself from a small to a large international operating company with still increasing sales around $125 million in 2000. Between 1987 and 1991 Canadel grew rapidly. This was due to the fact that the firm focused…

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Week 6 Homework Solutions

In a phrase, “net tax revenues vary directly with GDP. ” When GDP is rising, so are tax collections, both income taxes and sales taxes. At the same time, government payouts—transfer payments such as unemployment compensation and welfare—are decreasing. Since net taxes are taxes less transfer payments, net taxes definitely rise with GDP, which dampens the rise in GDP. On the other hand, when GDP drops in a recession, tax collections slow down or actually diminish while transfer payments rise…

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Supply Side Economics_ History and Relevance

Introduction The theory of supply-side economics has several labels associated with it, some positive and others negative, with “Reaganomics” or the “Trickle-down” policy being the most notable. Simply put, supply-side economics centers on the idea that the path to economic strength is achieved by focusing on the supply side of the market rather than the demand. By implementing policies to reduce the cost of production, whether by influencing labor markets or easing the burden of tax regulations on businesses, this…

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The Zambian Economy’s Benefits from Foreign Direct Investment

Discuss the extent to which the Zambian economy has benefited from using FDI, cite examples Development process must encompass improvements in production of goods and services which essentially aim at raising the standards of living of society’s social, economical, political, environmental and administrative structures (Gabas, 1993), with development comes improved education, health, social and economic benefits of the citizenry. However, for development of the country to take a predictable route, the economic activity must show increase over time. Economic indicators…

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Minimum Wage Increase

Most people would agree that raising the minimum wage sounds like a good idea, but arguments arise concerning if this increase would benefit the economy. Jared Bernstein believes that a minimum wage increase would positively affect the American economy. He argues that the economy is driven by consumer spending and low­income workers are very likely to spend their extra earned money. On the contrary, Douglas Holtz­Eakin strives to make the point that raising the minimum wage would not be beneficial…

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Balance of Payments

1. Define the balance of payments. Answer: The balance of payments (BOP) can be defined as the statistical record of a country’s international transactions over a certain period of time presented in the form of double-entry bookkeeping. 2. Why would it be useful to examine a country’s balance of payments data? Answer: It would be useful to examine a country’s BOP for at least two reasons. First, BOP provides detailed information about the supply and demand of the country’s currency….

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Gross Domestic Product

2. Using information from our textbook and from the following BEA links, define each of the sub components of GDP and discuss their importance. (20 points) The BEA links are: http://www.bea.gov/national/pdf/nipa_primer.pdf “Measuring the Economy: A Primer on GDP and the National Income and Product Accounts” http://www.bea.gov/about/pdf/jep_spring2008.pdf “Taking the Pulse of the Economy: Measuring GDP” http://www.bea.gov/scb/pdf/national/nipa/methpap/mpi1_0907.pdf “An Introduction to the National Income and Product Accounts” 1. GDP is Gross domestic product. GDP is the market value of all the goods and…

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Pestle Analysis Turkey

The Turkish government is made up of democratically elected representatives of the people divided into several ruling bodies. In September 2010, a referendum on constitutional reform backed amendments to increase the control of parliament over the army and the judiciary. Turkey is a strong proponent of liberal trade and investment policies. The European Union (EU) accession negotiations have required the country to increase the role of the private sector in the economy, enhance the financial sector’s efficiency and resiliency, and…

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Wk 6 Homework Solutions

Explain how built-in (or automatic) stabilizers work. What are the differences between proportional, progressive, and regressive tax systems as they relate to an economy’s built-in stability? Answer In a phrase, “net tax revenues vary directly with GDP. ” When GDP is rising, so are tax collections, both income taxes and sales taxes. At the same time, government payouts—transfer payments such as unemployment compensation and welfare—are decreasing. Since net taxes are taxes less transfer payments, net taxes definitely rise with GDP,…

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Indonesia_ the Troubled Giant

I.Time Context Indonesia is a large country in the Southeast Asia. It has been in steady growth economically under the leadership of Suharto but experiencing unfair treatment by the government as the president favors those of his colleagues in many aspects. Due to Asians financial crisis debt of considerable value has been incurred and lead to economic downturn. Recovery was in 2004, upon inauguration of a democratic president but wasn’t enough to answer problems on unemployment, corruption, and red tape….

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Macroeconomics of Japan

Japan is the greatest economy in Asia, in terms of GDP, as well as human resources and technology. The nation was once predicted to be the next superpower nation exceeding the United Sates and countries of the European Union. Today, it is the world’s third-largest economy after the United States and People’s Republic of China. It is also the second-largest economy by real GDP and market exchange rates. The economy is highly efficient and competitive especially in the services industry,…

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