Running The British Economy Essay examples -- Economics Macroeconomics

Running The British Economy Introduction ============ A study of economics in terms of whole systems especially with reference to general levels of output and income and to the interrelations among sectors of the economy is called macroeconomics. Macroeconomics is concerned with the behavior of the economy as a whole—with booms and recessions, the economy’s total output of goods and services and the growth of output, the rates of inflation and unemployment, the balance of payments, and exchange rates. Macroeconomics deals with the increase in output and employment over long period of time—that is economic growth—and with the short-run fluctuations that constitutes the business cycle. Macroeconomics focuses on the economic behavior and policies that effect consumption and investment, trade balance, the determinants of changes in wages and prices, monetary and fiscal policies, the money stock, the federal budget, interest rates, and national debt. In brief, macroeconomics deals with the major economic issues and problems of the day. In this software of running the British economy we will observe different outcomes in the British Economy by changing these four variables. They are 1. Government Expenditure 2. Tax Rate 3. Value Added Tax (VAT) 4. Monetary Cash Flow Through this assignment I have given a chance to run the British Economy for five years. In order to understand this assignment we first have to understand what these above four variables are? Explanation Government Expenditure ====================== It covers what so ever government spends in purchasing goods and services in order to perform their factions properly. This includes spending on such items such as defense e... ...es, which are 6.79. And by this all economy get a boast. People started getting better off and government got success keeping the interest of investor in economy. Balance to payment went down to 5, which is not bad. Bibliography Books 1. Diulio, Eugene A. Theory and Problems of Macroeconomic Theory. London. McGraw-Hill Publishing Company. 1974. 2. Fischer, Stanley. Dornubusch, Rudiger. Macroeconomics. USA. McGraw-Hill Publishing Company. 1990. 3. Glahe, Fred R. Macroeconomics Theory and Practice. USA. Harcourt Brace Jovanovich Inc. 1992. Websites 1. http://star2.vub.ac.be/~dvermeir/mirrors/ingrimayne.saintjoe.edu/econ/ISLM/ISLM.html Accesses on: 15/12/2004 2. http://users.ox.ac.uk/~scro0519/macro.pdf Accessed on: 15/12/2004 3. http://www.wabash.edu/dept/economics/Faculty%20Work/ISLM.pdf Accessed on: 16/12/2004