The Philip s Curve And Modern Macroeconomic Policy Making

Suhail Almarar Instructor: Course: Date: Solve the Questions Has the Philip’s curve any use in modern macroeconomic policy-making? The Philip’s curve offers great importance in modern economic analysis. Philip’s curve shows the relationship between the rate of unemployment and the rate of inflation in any given economy. The discovery of Philip’s curve by the great British economist gave room for the analysis of modern macroeconomic policy tools as well as management of different economies around the globe. The curve can be used to analyze the relationships between inflation and unemployment rates affecting modern economies. The curve can be used to address higher rates of inflation by adopting the appropriate fiscal and monetary policies. The same can be done to evaluate and determine possible solutions to higher rates of unemployment. The Philip’s curve can be used to check the level of growth within the economy. For instance, respective states can decide to increase their expenditure in order to improve the levels of employment. Many economies use Philip’s curve to improve on production of goods and services. Philip’s curve helps in explaining the importance of increasing aggregate demand. Aggregate demand helps create employment thus reduce the number of unemployed people in an economy. On the other hand, a high number of employed people results into increased spending thereby causing inflation. The Philip’s curve is a very important policy tool that modern economies useShow MoreRelatedInflation And Its Effects On The Economy2825 Words   |  12 Pagesfluctuation of the economy in the country that directly affects the economy of the world. It actually affects the various macroeconomics and microeconomics factor of the economy leading to various consequences. The most important consequences is unemployment. The phenomenon of inflation has been described in three different views: a) general view, b) Keynesian view and c) modern view. According to the general view it has been described as the increase in the price of goods and services but decreaseRead MoreArguments for and Against Business Ethics,11007 Words   |  45 PagesSCHEME OF EXAMINATIONS FOR BBA (INDUSTRY INTEGRATED) PROGRAMME w.e.f. SESSION 2009-2010 (Under Public Private Parternership Scheme) FIRST YEAR 1st Semester Title of the Paper(s) Business Organization Business Communication Skills - Workshop Business Mathematics Computer Fundamentals and Applications Economic Policy and Analysis Financial Accounting Environment Management External Marks (Theory) 70 50 70 50 70 70 70 Internal Assessment Marks 30 50 30 30 30 30 Practical Marks 50 Total Marks 100 100Read MoreModern Banking19159 Words   |  77 Pagesbetween Sakura and Sumitomo Mitsui Banks in April 2001. [ 2 ] MODERN BANKING Figure 1.1 The Banking Firm–Intermediary. i SL SD iL iâˆâ€" iD DL 0 T B Volume of loans/deposits i L − i D: bank interest differential between the loan rate (i L) and the deposit rate (i D) which covers the cost of the bank s intermediation S D: supply of deposits curve S L: supply of loans curve D L: demand for loans curve 0T: volume of loans supplied by customers i âˆâ€": market interest rateRead MoreConsumer Theory and Horizontal Axis45363 Words   |  182 Pagesgoods. You know how much of good 1 a consumer can afford if she spends all of her income on good 1. If you know the ratio of the prices of the two goods, then you could draw the consumer s budget line without any more information. TRUE 1. Ads in a slick business magazine are read by 300 lawyers and 1000 M.B.A s. Ads in a consumer publication are read by 250 lawyers and 300 M:B:A:0s. If Harry had $ 2,600 to spend on advertising, if the price of ads in the business magazine were $400 and the priceRead MoreIca Gh Syslabus26672 Words   |  107 PagesFinancial Reporting Public Sector Accounting Cost and Management Accounting Financial Management PART 4 4.1 4.2 4.3 4.4 Advanced Financial Reporting Advanced Audit and Professional Ethics Corporate Strategy and Governance Advanced Tax Planning and Fiscal Policy Review of Qualifying Examinations Syllabus May 2010 Proposed Transitional Arrangements 1 2 3 4 11 17 25 32 37 42 50 55 61 68 73 80 86 98 108 115 116 2 Institute of Chartered Accountants, Ghana Financial Accounting Fundamentals Read MoreVarian Solution153645 Words   |  615 PagesChapter 1 NAME The Market Introduction. The problems in this chapter examine some variations on the apartment market described in the text. In most of the problems we work with the true demand curve constructed from the reservation prices of the consumers rather than the â€Å"smoothed† demand curve that we used in the text. Remember that the reservation price of a consumer is that price where he is just indiï ¬â‚¬erent between renting or not renting the apartment. At any price below the reservationRead MoreChapter Practice13676 Words   |  55 Pageswhy some governments make better use of the inï ¬â€šows from foreign investment and know-how than others include all of the following except A. governmental practices that are business-friendly. B. local entrepreneurs that can train workers and invest in modern technology. C. high tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions. D. sound management of broader economic factors such as interest rates and inï ¬â€šation. 12. Which of the followingRead MoreThe Usefulness Of Study Of Bank Cost And Efficiency7640 Words   |  31 Pagesbank is to take loan and to make deposit. Since the first bank established in 12th century, bank is no more a simple institution where we exchange money but an agency considered to be speculative and hopeful. There is no doubt that the prosperity in modern society benefits a lot from the development of commercial activities, where bank plays a main role in. People make money through work or investment. So they divide their income into two major parts : one part is considered as profit ,with which peopleRead MoreProject on Risk Management46558 Words   |  187 Pagescannot be diversified completely. Management of Market Risk is a major concern for every bank. The board should decide the risk management policy of the bank and set limits for liquidity, interest rate, foreign exchange and equity price risks. Ensuring that market risk management processes (including peoples, operations, limits and controls) satisfy banks policy. Reviewing and approving, market risk limits, including triggers or stop losses for traded and accrual portfolios. Ensuring robustness ofRead MoreSarasvathy, Causation and Effectuation-Toward a Theoretical Shift from Economic Inevitability to14504 Words   |  59 PagesAcademy of Management http://www.jstor.org/stable/259121 . Your use of the JSTOR archive indicates your acceptance of the Terms Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For