Macroeconomics Research Paper Example | Topics and Well Written Essays - 1000 words

Macroeconomics - Research Paper Example Demand for goods and services are related to the real interest rate which is nominal interest rate minus expected inflation, whereas nominal interest rate is the market rate quoted in the financial pages of the newspaper. In this case, interest rate is almost zero that means nominal interest should be equal to expected inflation and the expected inflation is about 2% per year which is justifiable, it indicates that nominal interest rate showing unacceptable growth, adequate amount of rise in the nominal interest rate can increase the real interest rate to a desirable level. Usually when interest rate falls, borrowing increasing and individual’s purchasing power increases and so does the demand for goods and services, but if unemployment is very high and an economy is facing low GDP growth per year than shows the imbalance in the economy. According to the Philips curve, wages increases rapidly when unemployment is low and wages increases slowly when unemployment is low therefor e the government and the firms should raise wage rate to attract scarce workforce to increase the national production which will eventually increase the demands for produced goods and services. According to Okun’s law, a percentage increase in unemployment causes a 2% fall in real GDP, whereas in this case unemployment is very high, which is one the major reason of GDP downfall (Hall, 2011). Currently inflation is not matching the level of employment and GDP rate, therefore Fed and the government should increase the wage rate and decrease income tax rate to an acceptable level to encourage the spending which might result in increased demands for good and services and will eventually increase the national production, the government should also increase the subsidize the national production and increase import duty so national products will be preferred over international products (Hall, 2011). Conclusion By increasing nominal interest rate with a justifiable amount, by leverag ing wage rates and the local production, and by increasing import duty; the Fed and the government will be able to stabilize the economy and the balance of payment, the economy will grow at justifiable rate, the unemployment will decrease and the national production will increase while maintaining the inflation rate of about 2% which is quite justifiable. Part 2: Introduction Amendments in legislation and regulations were not the only causes of 2008 financial crises, changes in monetary and fiscal policy also contributed to the crises. The Federal Reserve dropped its federal funds rate very quickly to a very low rate, and kept the rate at historic lows for an extended period of time. Secondly the US deficit has increased its borrowing from foreign sources, especially from emerging countries such as China which are enjoying economic surplus. Contribution of monitory and fiscal policy in the causes of financial crises To eliminate the effect of the collapse of the technology equity bu bble and the terrorist attack on Twin Tower on September 11, 2001 on the economy; Fed chairman Greenspan injected low-interest rates below held guidelines which was an attempt to instill huge amount of liquidity in the US monetary system which actually resulted in lowering the interest rate by 2003 to 1%, the decided interest rate by Fed breaks the record of fifty years, that

Construction Industry in the UK Essay Example | Topics and Well Written Essays - 1500 words

Construction Industry in the UK - Essay Example Issues discussed include the condition of the industry and where it needs to go from here. In the end some recommendations such as, the government trying to stabilise the economy will help the industry prosper in the upcoming future, the industry focusing on not only building structures but diversification and more research and development. The theme that I have chosen from the leadership module is communication. Communication is the process through which we can assign and convey meaning to create shared understanding. It is basically exchange of thoughts and ideas from one person to another. The built environment/construction industry sector is a vital part of our economy. Human beings need houses to live in and that need to be built or constructed. Houses or structures have evolved through time. Today the structure of a building is more contemporary than. The industry is divided into three main sectors: the construction of building, heavy and civil engineering construction contractors and specialty trade contractors. The construction industry in the UK is quite large; it employs 2.2 million people and is Britain's largest industry. The industry is quite dangerous to work inn because of the large number of accidents that take place in the working environment. The industry accounts for 5 per cent of the UK GVA i.e. Gross Value Added. UK has the second highest level of construction value added per capita. The industry is worth 65 billion per annum and its total output in 2002 was 81.9 billion. It comes in the top ten construction industries in the world. The industry is skewed towards small firms, but these firms contribute a small share to the output and employment of people. Apart from all of this, the construction industry in any part of the world not only UK, is highly dependent on the business cycle. Any change in the environment affects the industry and decisions related to the industry. Thus, the better the economy is doing the better the environment for the construction industry to thrive in. Aims/Objective In this paper we will discuss the construction industry and we will see how the communication theme of the module affects the industry. Also, communication is a vital part of any industry or business environment, we will see the part that it plays in this particular industry. Literature Review The name of the literature is mentioned in the bibliography, but I will give a brief overview of all the literature that I went through in this section. According to the Fatal statistics released by Health and Safety Executive (HSE) for 2006/07 show there was a 28% increase in the number of fatal accidents to workers in the construction industry. Tragically 77 workers lost their lives in construction up from 60 in 2005/06, which was the lowest figure on record. (HSE Construction: Live Issues). Thus there are many health hazards in the industry. Corruption is also an issue even though the people involved in the sector have differing views about it making the problem very complex. A council has been developed to represent the professional bodies, research organisations and specialist business associations within this industry. This council is the Construction Industry Council (CIC). Internet has made a profound impact on the business communication in the construction industry. Free flows of information, open collaboration and diminishing international