StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Macroeconomics Theory - Speech or Presentation Example

Cite this document
Summary
The aggregate demand (AD) will lead to an increase in the country’s output after the change in the U.S government spending drives an increase in the creation of jobs and innovations. Holding to the changes made by the government, the AS curve will shift upwards from the left…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.3% of users find it useful
Macroeconomics Theory
Read Text Preview

Extract of sample "Macroeconomics Theory"

Macroeconomics Math Problem Question The U.S government uses the G t as a way of solving the threats that might lead its economy towards recession. a) The new AD curve with the use of the established government spending equation and its subsequent slope. The aggregate demand (AD) will lead to an increase in the country’s output after the change in the U.S government spending drives an increase in the creation of jobs and innovations. Holding to the changes made by the government, the AS curve will shift upwards from the left to the right margin.

Therefore, there will be a shift in the AD from AD1 to AD2 in slanting straight lines. b) Under the inflation shock, AD = C + I + G + X M and the subsequent slope of the curve.i) The vertical axis the government’s expenditure changes from G1 to G2 while the horizontal axis represents the increase in output from Y1 to Y2 and the current GDP.The vertical axis represents the government expenditure changes and the price changes from G1 to G2 while the vertical axis shows the GDP and the output changes from Y1 to Y2. ii) The inflation shock will affect the per capita because of the subsequent increase in income; thus, there will be a shift in the level of demand for products.

The changes in output will affect the people’s spending patterns and the AD curve will shift towards the right margin from AD1 to AD1. The AS curve will also shift upwards from the left margin to the right one. c) Changes in the event of a negative shock i. A negative inflation shock in the economy will lead to an escalation of the AS curve from the left to the right side of the graph. However, the AD curve will shift from AD1 to AD2 from the right to the left side. ii. The shifts in the AD curves from the right to the left margins of the graph will influence the new the output to reduce from the right to the left margin from Y1 to Y2 because of the reduced government spending.

Therefore, the changes in G1 to G2 downwards in the vertical axis will lead to a reduction in the demand and production factors of the economy. Question 2Series 1= AS Curve, Series 2=AD2, Series 3= AD1, Series 4= IS, Series 5= MP curve The graph shows that the U.S economy will experience a period of in increased output in its markets because of the positive shifts in demand and supply. The positive inflation shock will lead to increased GDP and GNP following the subsequent increase in the buyers’ income levels and the marginal increase in the country’s total output.

Question 3a) The effects of the rapid financial and mild financial crises to the IS and MP curves.The financial crises will influence stagnation in the country’s output. It is evident that the output will be Y1 after a 3% increase in the government’s expenditure hence the prices will increase to cater for the increased level of demand in the absence of supply.b) The federal government should resolve to the use of tax cuts. The other alternative policy to restructure the country’s economy will be the implementation of price regulations that will coerce the producers to increase the output rather than the prices. c) The impact of the federal monetary policy in solving the financial crises at the short run period will lead to a shift in the production from Y1 to Y2, a factor that will influence the need for labor; hence, the employed people will affect the country’s GDP and GNP.

Works citedMarchant, Gary E., Yvonne A. Stevens, and James M. Hennessy. "Technology, Unemployment & Policy Options: Navigating the Transition to a Better World." Technology 24 (2014): 1.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macroeconomics Theory Speech or Presentation Example | Topics and Well Written Essays - 500 words”, n.d.)
Macroeconomics Theory Speech or Presentation Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/macro-microeconomics/1670132-macroeconomics-theory
(Macroeconomics Theory Speech or Presentation Example | Topics and Well Written Essays - 500 Words)
Macroeconomics Theory Speech or Presentation Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/macro-microeconomics/1670132-macroeconomics-theory.
“Macroeconomics Theory Speech or Presentation Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1670132-macroeconomics-theory.
  • Cited: 0 times

CHECK THESE SAMPLES OF Macroeconomics Theory

Inflation in the United States

Inflation is an issue of concern to almost every country of the world.... According to Dimson, Marsh, & Staunton (2012), inflation could be identified as a rise in general price level that result to a decline in the purchasing power of a country's currency.... … The most reliable measure of inflation levels is the overall consumer index (CPI-U)....
3 Pages (750 words) Research Paper

Effects of Rising Economic Role of China on High Levels of Unemployment in the EU and USA

This essay questions the opinion, that rising economic strength in China will result in continued high levels of unemployment in the European Union and the United States.... China's growing volumes of exports are considered as a big threat to macroeconomic stability of the EU and the US in the essay....
4 Pages (1000 words) Essay

Macroeconomics: Theory and Policy

This paper "Macroeconomics: theory and Policy" presents planning that is a useless endeavor because developments in e-business/e-commerce and in the political, economic and societal environments are moving too quickly nowadays.... hellip; The debate over the planned economy and free-market mechanism started long ago when the classical economists refuted the mercantilists' theory.... This mercantile theory was strongly opposed by Adam Smith, who emphasized on the 'invisible hand' and 'laissez-faire'....
10 Pages (2500 words) Assignment

The theory of endogenous money

Taking into account different observations pointed out by certain theorists, it id identifiable that the two elaborated versions obtained from the Keynesian theory… According to their assumptions regarding how banking systems and monetary authorities behave, monetary economy behaves differently from real exchange economy (Keen and Grasselli, 2012:1).... Despite the idea endogenous money theory based its arguments on classical economics, it proved a constructive attempt for providing alternative theoretical framework for dealing with unsatisfactory IS/LM model....
4 Pages (1000 words) Essay

Communuication Ethics, and Society

Scholarship on media economics draws from both microeconomics and Macroeconomics Theory.... Scholarship on media economics draws from both microeconomics and Macroeconomics Theory.... Economic theory on the factors that inform the content of the Americans news and Entertainment media stipulate that media content is fueled by financial motivations.... Popular long-running Communication, Ethics, and Society Communication, Ethics, and Society Introduction Economic theory on the factors that inform thecontent of the Americans news and Entertainment media stipulate that media content is fueled by financial motivations....
1 Pages (250 words) Assignment

Long-Term Investment Decisions

This is so because consumers are much sensitive to any small changes in price of the commodity (Samuelson & Nordhaus, 2010).... However goods which are of… Such is the case of low calorie, frozen microwaveable food company. Raising prices in the low calorie, frozen microwaveable food company will not The consumer will have to consume the commodity as normal even if the prices are increased....
5 Pages (1250 words) Essay

Unemployment in Trinidad and Tobago 1997-1996

?Macroeconomics: theory and policy.... ?macroeconomics and new macroeconomics.... This case study is represents an analysis of the unemployment rates in Trinidad and Tobago from the period before the second World War when the country depended majorly on agriculture as a source of economic growth as well as employment....
2 Pages (500 words) Essay

Short-Term Company Outlook: Citigroup Incorporated

The macro-economic environmental influences the business environment in determining the ability of a business in generating profit.... Citigroup Incorporation is one of the… Indeed, the recent financial crisis depicts how the macro-economic environment is critical in determining the financial performance of Citigroup....
3 Pages (750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us