Keynes theory Fiscal multipliers are defined as the effect of a one dollar change in fiscal policy, either a one dollar increase in spending or a one dollar decrease in tax revenues, on GDP. In other words, fiscal multipliers are the ratio of a change in GDP to a one dollar change in fiscal policy (IMF paper). There is no agreement among the literature regarding the size and the significance of the fiscal multipliers as the findings concerning the fiscal multipliers significantly differ across the
Domar’s growth model considers the supply side first, that is, the capacity effect of investment. His theory is based on the idea of macroeconomic balance which states that savings is a leakage from the system where income flows “out” as the firms produce and flows “into” as the households purchase the goods produced, while the
al Written Assignment) “Governments should play active roles in managing short-run instability in the economy caused by unemployment and inflation problems.” Do you agree with the above statement? Please explain your view. Governments should play active roles in managing short-run instability in the economy caused by unemployment and inflation problems. Unemployment Unemployment is the state where people are unemployed. This happens when there are new or re-entrant in the workforce or people
inflation of the country. iii. All together these policies are primarily used to maintain a stable economic health of a country. South Korea’s fiscal policy and spending to curb 2008’s financial crisis: The financial crisis of 2008 had a profound effect on the economy of the country and resulted in a lot of problems that effected job growth, domestic consumption, investment as well as corporate profit. The most effected was the export business of South Korea which accounted nearly 45% of the total
GLOBALIZATION’S VIEW Globalization as a tool to connect countries, governments, people, which has positives and negatives sides towards equality and opportunities. The article by Thomas Friedman, “Globalization: The Super-Story” expresses his posture among globalization which can be a controversial and complex topic to analyse. In some cases viewing Friedman’s point of view I did not agree and felt that the statements about globalization were more his opinion. According to Friedman “globalization
“If there is a negative multiplier effect this may actually cause the deficit to increase even more. Therefore in a recession a deficit is necessary to increase AD.” Another advantage to deficit spending is if there is lack of success in a market in the economy for example the
1.Introduction Comprehensively, we are probably aware that Mass Tourism has the accompanying attributes: (a) involvement of a huge number of people in tourism, (b) holidays are being standardized, rigidly packaged and inflexible (Karamustafa 2012), (c) it is being mass produced and mass marketed and (d) consumed by tourists that are unconcerned about the local culture or practices. This goes to say that Mass Tourism requires vast improvement in tourism and the need of the involvement of international
CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Nigeria has been suffering the negative environmental consequences of oil development since oil was discovered in Nigeria (Badejo and Nwilo 2008). The growth of the country’s petroleum industry combined with an increasing growth rate in human population and a lack of enforcement of environmental regulations and commitment on the part of government has led to substantial
According to the Greek philosopher Pindar, the best of all things is water. This view is notsurprising since the need for water, throughout human history, has always been appreciated. It is present everywhere, and without water, life, as it is known, will simply cease to exist. Water is constantly in motion, passing from one state to another and fromone location to another. Whether the water is in motion, or stationary as it is in lakes, itinvariably contains extraneous materials, some due to natural
Defining minimum wages Ehrenbeg and Smith (2006:109) refer to minimum wages as a policy that compels the employers to increase wages paid to all low wage workers. The fact that a minimum wage is a compulsory rate should have an interesting economic effect on such factors as working hours and the workers output The impact of minimum wages on job creation Minimum wages can reduce income equality in South