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macroeconomics (Essay Sample)

Phase 2 Individual Project Deliverable Length: 1,000–1,600 words Details: Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time. Part I Describe John Maynard Keynes' contribution to the theories of Macroeconomics. Why was he such an important economist? Discuss the theories of two other 20th century economists who made a significant contribution to the study of economics. Part II Assume that Country A has a population of 500,000 and only produces one good—cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale. What is Country A's GDP? What is the composition of GDP by percentage? What is the GDP per capita? If government purchases go up in the short run, what happens to GDP? Show this graphically. If consumption and government purchases go up, what happens to GDP in the long run? Why? How would this look in a graph? How does this relate to Keynesian economics? Part III Go to the Bureau of Economic Analysis on the Department of Commerce's Web site, and look up the latest new release for real GDP. Where are we in the business cycle? What is the real GDP today? What is the nominal GDP today? What is the difference between nominal and real GDP? What is the largest component of GDP? What is the smallest component of GDP? What is the fastest growing component of GDP and why? What components of GDP were involved in the change from last month to this month? What is the price index today? What caused the change? Is the GDP price index different from the CPI? How so? Which price index—CPI, GDP, or PPI—makes the most sense to you? source..
Business and Marketing Name: Institution: Course: Tutor: Date of submission: Business and marketing Part 1 It is almost impossible to study economics without coming across John Maynard Keynes. He is responsible for the creation and development of modern day Keynesian economics. John Maynard`s contribution in economics is so important that without some of the principles he set forth, it would be impossible to have the level of effectiveness we enjoy in economics today. Through the works of John Maynard, there are a number of influential works that make economics what it is today. John Maynard is known as the man who literary transformed the face of the economic world. Along with Karl Marx and Adam Smith, John Maynard is listed as one of the fathers of modern day macroeconomics. He was a British economist who came up with ideas that shook up the entire framework which classical economics is built on. What he established continues to influence the fiscal and economics of the western governments long after they were established. This section of the paper aims at presenting the key theories and principles, how they were developed, and the impact they have on economics. (Minsky, 2009) The key theories and principles of John Keynes are classified into three. The three main theories deal with interest and money, the economic consequence of peace, and the general theory of employment. One of the main reasons for the establishment of the general theory of employment was to challenge one of the consensus established with regards to the relationship between employment and the economic downturn. In 1936, this theory challenged the assumption that the economy possessed a unique ability to restore itself after the downturn was over. With regards to investments and savings, Keynes had a number of theories dealing with these two elements in economics. The theory laid out by Keynes states that investments and savings are determined by forces that are independent of each other. Whereas investments are determined by the expected return laid out in interest rates, savings are mainly controlled by the level of a country`s propensity to consume. The aggregate that is established between the level of investment and consumption was labeled as th...
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