_____ refers to government efforts to influence the economy through taxation and spending decisions designed to encourage growth, boost employment, and curb inflation.…
Macroeconomics is the study of the economy as whole (Colander, 2013, p. 5). It considers the problems of inflation; unemployment, business cycles, and growth (Colander, 2013, p. 5). Inflation is a general increase in prices and fall in the purchasing value of money. Unemployment rate refers to the number of people actively looking for a job but unable to find one (Colander, 2013, p. 5). Business cycle is a cycle or series of cycles of economic expansion and contraction (Colander, 2013, p. 5). Economist analyzes each of these factors to determine the state of the economy. We live in an environment that is constantly changing. There are a number of factors, behaviors and trends that affect the economy. One event can caused a domino effect. This paper will outline how scenarios such as purchasing groceries, massive layoffs, and a decrease in taxes affects government, households, and businesses.…
In the beginning there was no intention for the government to have a hand in business. The government wanted businesses to act on their own best interests without any involvement from the government. Regulation was brought about to enhance the public and take care of those that have lost or investigate those who have cheated. For many years there was no government regulation and as time progressed the need for it became apparent. Regulation has a lot of costs and a lot of benefits. The government likes to keep them efficient by making sure the benefits of them outweigh the cost. It isn’t cheap to have these regulations in place but it is what is needed to make sure that companies are doing the right things. The following are roles of government: protecting business property and enforcing business contracts, setting and collecting taxes. The government would provide fire, police and military protection under protecting business property. The government would issues trademarks to businesses to protect their products, copyrights to artists and writers to protect creations, and patents to inventors to give them control of their inventions. Within the soft drink industry government regulation is much needed due to the fact that child obesity is on the rise. The role of government in business has changed and evolved since the country was born. The government is involved in business to provide public goods; to protect public health and welfare; to stabilize the economy; to protect businesses, consumers, investors, and competition; to conserve the environment; to regulate working conditions; and to protect business property. Both state and federal laws govern mergers and acquisitions. State laws set the procedures for the approval of mergers and establish judicial oversight for the terms of mergers to ensure shareholders of the targeted company receive…
In modern society people desire goods and services that provide a more comfortable or affluent standard of living. We want bottled water, soft drinks, and fruit juices, not just water from the creek. We want salads, burgers, and pizzas, not just berries and nuts.…
Tyson, L. (2011). Recovering from a balance-sheet recession (The economy is showing signs in all markets, that the recovering isn't coming anytime soon.), Retrieved from http://economix.blogs.nytimes.com/2011/08/26/recovering-from-a-balance-sheet-recession/?ref=economy…
* Economic problem: how a society can satisfy the unlimited wants (of individuals or the community) with the limited resources available.…
A common problem faced by incoming and returning students alike, is the task of selecting unfamiliar professors. Obviously, all students hope to select a good professor, but it is often a shot in the dark when selecting classes for the upcoming year. To combat this, I sat in on two different sections of the general education course. The course I chose was ECO 155 Principles of Macroeconomics. One section is taught by Dr. Julie Gallaway, and another section is taught by Dr. Mahua Mitra. My goal was to compare the two different teachers, and ultimately give my opinion on who was the better professor, using criteria such as organization, teaching style, and availability for questions, among others.…
Analyze the impact of fiscal policy and the role of the federal government in influencing the level of economic activity.…
6. If you have a private-ownership right to something, what does that mean? Does private ownership give you the right to do anything you want with the things that you own? Explain. How does private ownership influence the incentive of individuals to a) take care of things, b) conserve resources for the future, and c) develop and modify things in ways that are beneficial to others?…
It is to be expected that an economy will rise and fall. To protect it from falling to far the government created the Federal Reserve System. According to socialstudieshelp.com, “The Federal Reserve System's main responsibility is to safeguard the proper functioning of our money system.” This paper will discuss the role of the Federal Reserve, the goals and tools of the Federal Reserve. It will also discuss monetary policy and fiscal policy, how they work, why they are used, the difference between the two, and the appropriate time to use each one.…
* The federal government uses monetary and fiscal policies, or stabilization policies, to keep the economy healthy. The government uses methods and theories to avoid the two problems that destabilize the economy—unemployment and inflation. Unemployment can be classified as cyclical, structural, seasonal, or frictional. High unemployment is a sign that the economy is not well; on the contrary, low unemployment is a sign of a stable economy. Inflation is caused by excessive expansion of the money supply or government spending, according to the demand-pull theory.…
The United States government intervenes in business processes in a number of ways; it has formulated regulation that governs the film distribution industry to ensure a level playing field, ensuring employee protection, protection of the environment etcetera. For instance, there are laws that govern advertising. These laws are set to ensure that advertisers are truthful and honest in their adverts. To protect the rights of employees, the government regulates issues such as the minimum wage payable to an employee, the maximum working hours and a good working environment.…
Gross Domestic Product or GDP is the total value of final goods and services produced in a given year. GDP is comprised of four basic categories. Those categories are Consumption Expenditures, Private Investment Expenditures, Government Purchases and Net Exports. Gross National Product or GNP is the total of final goods and services produced in a given year by another country. The difference between the two can be easily identified by understanding that GNP include foreign net income opposed to considering net exports and imports. Based on the table provided above, to determine GNP from GDP you have to include the value of…
1. What components of GDP (if any) would each of the following transactions affect? What will happen to GDP? Explain.…
What can happen if the government's let go of some of these regulation? Will businesses flourish while hurting the common people? Will deregulation help to push another depression? Will the environment be harmed while people benefit from their selfish desires? These questions will be discussed later in the paper.…