The capability of an economy to produce increases with time when it is accompanied by technological change and capital accumulation, which in turn improves labor productivity and increases labor supply. (Diulio, 1997) Macroeconomics is closely linked to governmental policies and politics which in turn can affect the economic success of a nation
Macroeconomic theories can be used to explain the performance of macroeconomic variables and identify the relationships between the different variables in an orderly and logical manner. (Froyen, 2008) Macroeconomic theories provide analytical tools and a framework which can help in the analysis of macroeconomic phenomena
Therefore, when we talk of economic growth or success, we are basically talking of the increase in a nation's economic capacity or productive capacity regardless of its usefulness. (Montiel, 2003) GDP is the commonly used gauge of a country's economic success
Many of these governments followed conservative policies under the aegis of the IMF which were later criticized by a number of experts for having misguided and impeding economic growth in these countries. (Stiglitz; Initiative for Policy Dialogue, Ocampo; Spiegel; Ffrench-Davis; Nayyar, 2006) The productive potential of an economy constitutes the supply side
Thus the government must watch the Gross Domestic Product and growth indicators, such as unemployment, and keep tight control of the Federal Bank's distributions and limitations set on interest. The monetary policy is the only thing the government really can control, "through the Central Bank's power to influence real variables such as interest rates and output levels" (Harris 15)
The current monetary policy is expansionary in nature. This is because GDP growth is slower than where it should -- there is a gap between the actual GDP level and the potential GDP level (Gavin, 2012)
Since February 2011, the inflation of United States has stabilized a little in April, showing efficiency in the measures taken to curb inflation. These include the monetary and fiscal measures (Markham, 2002)
In case the banks and other credit institutions are allowing small interests rates, then the situation can be referred to as cheap money. Dear money is a situation where the credit institutions allow high interest rates, so as to reduce the ability to borrow money (Fernando, 2011)
Figure 1.2: Expected percentage change since 2010 Percentage changes from 2010 to 2013 -- predictions (Newport, 2011)
When there is inflation in the economy, the Federal Reserve will sale the Federal notes to the financial market to withdraw money in the circulation to curb the inflation rate and high interest rates. (Blanchard, Giovanni, and Paolo, 2010)
All these effects will strengthen the growth of aggregate demand. (Blinder, 2000) Moreover, lower interest rates on consumer loan will influence greater demand for consumer goods
Near-zero interest rate monetary policy of Federal Reserve policy dramatically expanded the Federal lending facilities. (Pollin, 2012)
This allows for: the free flow of information, less barriers for new competitors to enter certain industries and large numbers of buyers / sellers. (Makowski, 2001, pp
Yet, underneath it all, this basic model encouraged many of: the different banks, brokerage firms and other financial institutions to merge together. (Schaeck, 2010, pp
Yet, underneath it all, this basic model encouraged many of: the different banks, brokerage firms and other financial institutions to merge together. (Schaeck, 2010, pp
However, despite this issue many consumers continued to engage in these activities. (Sugita, 2009, pp
as, they have a product that is: in demand and one that consumers will continue to use. (Vickers, 2010, pp
A second indicator that can provide insight into FedEx's operations is the Consumer Confidence Index. This report from the Conference Board (Barnes, 2012) has three headline figures relating to how people see the health of the U
In addition, because FedEx is a premium service, businesses often reduce the degree to which they rely on FedEx in situations where they are facing cost reductions. By 2010, FedEx had restored operations to roughly pre-recession levels (Risher, 2010) and the company predicts slow economic growth going forward (Malone, 2011)
In addition, because FedEx is a premium service, businesses often reduce the degree to which they rely on FedEx in situations where they are facing cost reductions. By 2010, FedEx had restored operations to roughly pre-recession levels (Risher, 2010) and the company predicts slow economic growth going forward (Malone, 2011)