Presentation
Summary International Money and Business lectures
- Course
- Institution
Presentation of 17 pages for the course International money and Business at HvA
[Show more]
Seller
Follow
ejp
Reviews received
Content preview
International Money and Business Lectures1. GDP
GDP = C + I + G + X – M
C: X and I:
- Purchasing power - World trade
- Consumer confidence - Competitive position
- Interest
- Capital
I: Three macro- economic goals:
- Sales expectations
Price stability
- Capacity utilization rate
Low unemployment
- Interest
Sustainable economic growth
- Profit
Potential GDP = full capacity economy, using all resources (full employment)
Aggregate Supply and Aggregate Demand (macroeconomic price equilibrium)
If Prices go up;
- we can’t buy as much as before, Decr in Demand
- importing goods
- turns interest rates up
What causes a shift in AD?
- increase in purchases of the country's exports
by people in other countries
- decrease in imports from other countries
- increase in transfer payments from the
government to the people
- decrease in taxes
These events would shift the aggregate demand
curve to the right. As a result, the price level
would go up. In addition if the time frame of analysis is the short run, so the aggregate supply curve
is upward sloping rather than vertical, real output would go up; but in the long run with aggregate
supply vertical at full employment, real output would remain unchanged.
What causes a shift in AS?
- Any result in effecting production costs.
- taxes, subsidies, labour costs, raw materials
, Recessionary gap Labour price will fall to new equilibrium
- real GDP Q* < potential GDP
- surplus of labour
Inflationary Gap Labour price will rise to new equilibrium
- real GDP Q* > potential GDP
- Labour shortage
Business Cycle
The recurring and fluctuating levels of economic activity that an economy experiences over a long
period of time. Consumer- producer confidence, bond stock prices are leading indicators,
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ejp. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.82. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62774 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now