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... expecting declines (19.5%) by a margin of more than 2-to-1, while 32.6% remain neutral on their profit outlook. Personal consumption accounts for roughly 70% of GDP, and consumer strength is a key indicator for future sales and profits. Consumption is affected by the jobs situation, and both job gro ...
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... Government seeks to influence the economy at each of these points in the cycle; however, there is a special policy in which the government can be limited, thus allowing the free market to improve on its own. This is sometimes referred to as supply-side economics. As you learned earlier, growth is be ...
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... -sole proprietorship (aka single proprietorship) -partnership -corporation -public (government) enterprise -cooperative 8. The quality of human resources depends on four major characteristics, what are they? 1. health 2. education 3. work attitudes ...
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... • Use of monetary policy to expand and contract the money supply • Depression was caused by drop in money supply • “Great contraction” – falling prices, rising unemployment and declining incomes • FED should have expanded the money supply ...
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... • It has been one of the fastest growing successes of the past decade. • UK pioneered digital television and radio and have led the way in a national switchover programme. • Britain has the highest proportion of internet advertising of any developed economy. • By 2012 £1 in every £5 of all new comme ...
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... total population at midyear. • Provides the average slice of the economic pie per person. • Per capita GNI PPP: the GNI PPP divided by the total population midyear. Again a better way to compare people’s econmic ...
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... 1) Lowering the level of corporation tax or interest rates should stimulate business activity and investments 2) Government spending on education and training should help to make future generation of workers more skilled. “Supply–side policies tend to have more permanent effects on the economy than ...
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... later, leading the majority of people with a sense that personal well-being is gained through material and monetary wealth. This mind set also leads to an irresponsible and unsustainable allocation of natural resources. Hopefully this module will leave you with an understanding of the discrepancies ...
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... •  Story  #  1:    Sca[ered  investment  in  skills  builds  a  community  able  to   organize  itself  to  defeat  monarchs  and  some6mes  maintain   democracy.               –  Boston  1775,  Paris  1789,  1830,  1848,  1871,   ...
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... • Recession can be held at bay by lowering interest rates, while inflation is usually tamed by raising interest rates. • Given the impossibility of pursuing both courses of action simultaneously, priorities come into play. This is where the actions of the RBI become crucial. ...
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... recovery is underway from the Panic of 2008. In other words, economic growth accelerated by about 4% at an annualized rate between winter and spring. Unless the multiplier from government spending is 4 (which no one believes), this recovery is being caused by something other than stimulus. That some ...
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... Decisions Based on the Current Situation The process of making decisions based on opportunity cost means recognizing the real value of the costs involved in the choices. This can sometimes be difficult and can result in people making decisions based on sunk costs. Sunk cost is a cost that has alrea ...
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... The department estimated a month ago that gross domestic product, or GDP, grew at a 0.9% annual rate. GDP measures the total output of goods and services within U.S. borders. Economists polled by Reuters had expected the upward revision to a 1.0% pace. The figure was initially reported in April at a ...
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... “Fiscal stimulus or fiscal austerity?” (Job Market Paper) In bad times, intended stimulus effects in high-debt economies with large interest rate spreads can be muted, or reversed, if the stimulus is conducted at the cost of rolling over debt, paying high interest rates, and levying heavy taxes. We ...
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... The entrepreneur is one of the most important people in the economy. The entrepreneur organizes land, labor, and capital in order to seek the reward called profit. The entrepreneur’s search for profits can lead to a chain of events that involves new products, greater competition, more production, hi ...
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Steady-state economy

A steady-state economy is an economy of relatively stable size. A zero growth economy features stable population and stable consumption that remain at or below carrying capacity. The term typically refers to a national economy, but it can also be applied to the economic system of a city, a region, or the entire planet. Note that Robert Solow and Trevor Swan applied the term steady state a bit differently in their economic growth model. Their steady state occurs when investment equals depreciation, and the economy reaches equilibrium, which may occur during a period of growth.
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