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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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- Spring '11
- Economics, economic activity, economic instruments, Policies Economic Variables, Political/Military Non-economic Variables, Macroeconomic Map Independent