Category: Macroeconomics

Explain the concept of the Balance of Payments (BoP), and how it relates to the foreign exchange (forex) market under a floating rate and a so-called fixed exchange rate. How does the latter regime cause problems for the Chinese economy? The balance of payment indicates all the transactions of a given country with the rest…

Explain the concept of the Balance of Payments (BoP), and how it relates to the foreign exchange (forex) market under a floating rate and a so-called fixed exchange rate. How does the latter regime cause problems for the Chinese economy? The balance of payment indicates all the transactions of a given country with the rest…

Brief summary of article Global downturn aftershocks are to blame for the economic situation in the USA as far as economic growth and employment is concerned. The shocks have culminated into higher unemployment rates for a long period. The government is proposing the use of fiscal policies to create employment to those individuals who are…

Brief summary of article Global downturn aftershocks are to blame for the economic situation in the USA as far as economic growth and employment is concerned. The shocks have culminated into higher unemployment rates for a long period. The government is proposing the use of fiscal policies to create employment to those individuals who are…

What, if anything, does the Employment/Population (E/P) profile for the United States from 2007 to 2012 tell you about short-run economic growth over that period? The rise in the unemployment rate in the United States after the economic recession of 2007-2009 was severe and unprecedented. During this period, the unemployment rate rose from a low…

Explain how a basic analysis of the money market underpins the derivation of the LM curve The LM curve is derived from the money market equilibrium. It shows the range of values of interest rates, I, which when combined with the outputs, Y, give an equilibrium money market. The interest rate, I, can be interpreted…

What, if anything, does the Employment/Population (E/P) profile for the United States from 2007 to 2012 tell you about short-run economic growth over that period? The rise in the unemployment rate in the United States after the economic recession of 2007-2009 was severe and unprecedented. During this period, the unemployment rate rose from a low…

Explain how a basic analysis of the money market underpins the derivation of the LM curve The LM curve is derived from the money market equilibrium. It shows the range of values of interest rates, I, which when combined with the outputs, Y, give an equilibrium money market. The interest rate, I, can be interpreted…

Lately the crude oil prices have been volatile, reaching an all time high at over 96 dollars a barrel in November 2007. This can be perceived to be brought about by the war on terror. Due to this high prices and pressures from other factors such as environmental issues; energy sustainability is a currently highly…

Lately the crude oil prices have been volatile, reaching an all time high at over 96 dollars a barrel in November 2007. This can be perceived to be brought about by the war on terror. Due to this high prices and pressures from other factors such as environmental issues; energy sustainability is a currently highly…