" Some types of government expenditures, for example, stretch the definition of economic activity. We know that an order for new office chairs at city hall is economic activity, but what about transfers to government agencies to run prisons? Or loans made by government to bail out banks or automakers. Those were expenditures. Something like the AIG bailout was an investment. But even investments are not necessary part of the GDP. Commissions paid on investments are, but are the investments themselves? Sorting out what is and what is not included in the GDP is another challenge for calculating national income. Also, EconPort (2006) note that welfare is not measured. Again, this is a disbursement that is not taken into consideration in the accounting, until it is spent at a later point in time. It is worth noting that...
It is illusory in that all figures are positive. Yet spending money rebuilding after Katrina or the Japanese tsunami is not spending towards economic progress; it is merely recovering what was lost. Thus, national income accounting takes some spending into account that it should not, if it is to be considered a measure of economic progress.
Macroeconomics -- Review of Age-Old Economic Concepts through the Eyes of Current Events in the Newspapers of Today It has been a unique privilege to embark upon the study of economics during this period in our nation's economic history. One might be tempted to say this is a strange statement, at first. Would it not be better to begin to study economics during a boom period, such as the nation enjoyed
Macroeconomics -- Inflation Domestic and national news are constantly talking about the rapid changes and increases in prices of basic commodities today. Prime commodities for a specific economy or country are discussed with the same intensity as changes in the global market prices for important, universal necessities such as oil. Prices of basic commodities are not the only ones susceptible to increasing in value. Services, too, particularly wages, are subjected to
With a decreasing demand, the economy could no longer produce to the same levels, pressured by price deflation as well, so the spiral continued to tail the economy downwards. The New Deal measures produced the exact reverse effects. In this sense, stimulating the economy with new governmental programs and increased governmental spending meant that new jobs were created and that the economy gradually resumed its growth. Bibliography 1. Causes of the Great
Since their introduction in the early 2000s, the tax cuts have diminished the nation's tax bill by hundreds of billions every year. Over the next ten years, they are expected to add $3.6 trillion to the debt. Without these cuts, our medium-term budget (say, over the next decade) would be sustainable. As long as new revenues are off-limits, attacking the deficit is equivalent to attacking the functions of government.
Macroeconomics Guyana -- Inflation Rate Inflation rate is an important concern to assess the economic condition of any country. This report focuses on the inflation rate of the South American country, Guyana. The economy of Guyana mainly depends upon the production of rice, sugar, shrimp, fresh fruits, vegetables and fish. The important industries of Guyana include mining of diamond, gold and bauxite, manufacturing of pharmaceuticals, footwear, clothing, beverage and foodstuff processing. In Guyana, inflation
Applying limitations to credit consists in conducting a restrictive action on the distribution of particular credit. This instrument has certain limitations of its own: the difficulty of setting norms regarding growth of the volume of credits; altering competition between banks and applying sanctions to the most dynamic; multiplication of the procedures designed to break certain rules. The income policy is applied only if the excessive increase of incomes is a determining factor
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