Lecture 2

Lecture 2 - s WTO (rules for international trade e.g....

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Macroeconomics Lecture 2 The Macroeconomic Map 1. The Independent Macro-Variables Economic Variables (1) Available Resources s Land, Labor, & Capital s Availability in terms of quantity & quality (2) Economic Policies s Economic Instruments used for allocation of resources a. Fiscal Policies s Gov. revenues (mainly taxes) s Gov. expenditure (subsidies, infrastructure, etc.) b. Monetary Policies Interest rates, money supply, loans, deposits, etc. Internal Variables Non-economic Variables (1) Social (values, culture, behavior) (2) Political/Military (stability, freedom, democracy) (3) Natural (natural disasters) (4) Institutional (institutional structure , rules and regulations) Economic Variables (1) World Economic Performance (e.g. recession, etc.) s Affects our economy through trade (exports & Imports), tourism, etc. (2) World/International Organizations s WB s IMF (loans and funs to developing countries)
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Unformatted text preview: s WTO (rules for international trade e.g. tariffs) External Variables Non-economic Variables (1) Political/Military Wars, military instability (e.g. the case of the Middle East) (2) Natural Factors in other Countries Natural disasters Spring 2011 The Economy (Economic Activity) Independent Macro-Variables (Affect economic activity) Dependent Macro-Variables (Affect by economic activity) The above-mentioned are the independent factors that can be used to affect the performance of the economy. Some of them are controllable and have a short-run effect such as fiscal and monetary policies. Others can be changed only on the long-run such as social values and culture. There are also factors that are out of control of the domestic policy makers, which are mainly the external factors....
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This note was uploaded on 04/08/2011 for the course MGMT 401 taught by Professor Mohamed during the Spring '11 term at Manor.

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Lecture 2 - s WTO (rules for international trade e.g....

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