Macroeconomics
“How might a country go about lowering its NAIRU? What are the welfare implications of so doing?”
In tackling this question, we will adopt a theoretical approach in the sense that we will focus on an economy and explain the determinants of NAIRU as well as the policy options. But it seems logical to first introduce the concept of NAIRU, or the non-accelerating inflation rate of unemployment, which will be interchangeably used with the “equilibrium rate of unemployment”.
According to Carlin and Soskice , the central concept of equilibrium unemployment can be defined as “the rate of unemployment at which the expected real wage that results from wage-setting decisions is equal to the real wage implied by price-setting decisions”.
Stiglitz argues that the NAIRU is used as a theory to understand the causes of inflation (predicting the changes in inflation rates) and is important because it enlightens the relation between unemployment and increasing inflation. The NAIRU corresponds to the rate of unemployment which is consistent with an unchanging inflation rate, and further reflects how the economy behaves out of equilibrium. Unless employment is at equilibrium level, inflation will increase or decrease until it reaches the NAIRU, the level of output and employment at which inflation is constant. In fact, Stiglitz explains that when unemployment is below the NAIRU, real wages demands are greater than the amount firms are willing to pay. At equilibrium, the behavior of wage-setters is compatible with that of the price-setters. His point is indeed that “if NAIRU exists, it must be changing over time” . What is more, Stiglitz identifies four phenomena that can change the NAIRU, namely changing demographics of the labor force, the productivity growth becoming more in line with worker expectations, an increase in the competitiveness of the labor and product market (through greater openness and trade), and finally hysterisis, which says that a higher NAIRU will generate an even higher one. He also discards the theory according to which productivity rate affects the equilibrium rate: productivity only has a temporary influence through the “wage-aspiration” effect.
According to Altig and Gomme , the NAIRU is thought to represent a “speed limit” for economic activity: “it measures a nation’s sustainable production capability”. If the economy grows faster than its resources can support over the long-run, that is when the unemployment rate falls below the NAIRU, then price pressure builds and inflation rate accelerates.
The medicinal practices and problems of the Elizabethan Era were very important to the people, although they are very different from those of today. There were many different beliefs and diseases, like the Plague. Medicine was not an exact science and was related to Alchemy (Chemistry). Here, some of the many practices and beliefs of the Elizabethan Era will be discussed.
... defines the scriptural meaning of the word “day” and explores its usage throughout the Scriptures to provide evidence for a literal six day creation. MacArthur dispels the notion that each day was a long period of time, an idea held by old-earth creationist, through scriptural insight that “whenever the word [day] is modified by a number the clear reference is to a normal solar day” (40). To MacArthur the word day marks “clearly defined boundaries” instead of indeterminate span of time (39). MacArthur beautifully challenges his readers to see that the purpose of Scriptural account of creation is to reveal an infinitely powerful God, who created everything perfectly in a short period of time (41).
To conclude, medicine of this time was so sad that death was inevitable. They couldn’t blame the doctors or even themselves for the cause of all these diseases because they didn’t really know what to do. Doctors were experimenting and taking lives but not learning from their ineffective practices like bleeding or leeching. Religion was probably the best possible choice for that time.
Doctors believed the human body was part of the universe, so they used elements for each humour, “Yellow bile was the equivalent of fire. Phlegm was the equivalent of water. Black bile was the equivalent of earth and blood was the equivalent of air”(“Shakespearean and Elizabethan Medicine”). Also, because of their beliefs and lack of knowledge on serious medical conditions, most severe cases were not treated accurately. Some doctors believed if a person broke a bone, then it was never supposed to be used again because the accident was based from many sins of the soul (“Shakespearean and Elizabethan Medicine”). The doctors also believed in completely covering their body when treating a patient. It was thought that if they wore boots, gloves, masks and robes, then they would be protected from the diseases. They also wore an amulet around their waste, filled with dried blood and ground up toads (Alchin). Although this may seem out of the ordinary today, these precautions were something an Elizabethan doctor did not go
The adaptive expectations theory assumes people form their expectations on future inflation on the basis of previous and present inflation rates and only gradually change their expectations as experience unfolds. In this theory, there is a short-run tradeoff between inflation and unemployment which does not exist in the long-run. Any attempt to reduce the unemployment rate blow the natural rate sets in motion forces which destabilize the Phillips Curve and shift it rightward.
Macropoland, a natural gas and oil importer, has a natural rate of unemployment of about 4.5% and a long run average rate of inflation of about 2%. However, there are two specific time periods where these rates fell below their potential. During the period between 1973-1974, the country had an inflation rate of about 15%, with an unemployment rate of nearly 13%. And now, they are experiencing an unemployment rate of 9% and an inflation rate of 0.4%. As their new economic advisor, it is my job to explain these two time periods.
“Macroeconomic indicators include economy-wide phenomena such as unemployment rates, national income, rates of growth, gross domestic product, inflation, and price levels” (Page & Stevens, 2005).
T.D. Wilson (2002) makes a point of identifying several sources of articles, references and course syllabi with varying takes on knowledge management within organizations. Wilson is convinced that organizations misuse the terminology “knowledge management” and that their activities are more concerned with managing information than with the management of knowledge (Wilson, 2002). Wilson defines knowledge as involving “the mental processes of comprehension” or, as “what we know” and information as the expression of what we know and can convey through messages (Wilson, 2002). By researching the use of the “knowledge management” Wilson conveys that the terms knowledge and information are used interchangeably, which results in an inaccurate application
Many people didn’t believe in medicine at all. The most commonly used treatment was prayer. Ordinary people relied on methods their parents and grandparents used, such as lucky charms, magic spells and herbal cures. Some of the herbal cures were quite useful.
The present environments for healthcare organizations contain many forces demanding unprecedented levels of change. These forces include changing demographics, increased customer outlook, increased competition, and strengthen governmental pressure. Meeting these challenges will require healthcare organizations to go through fundamental changes and to continuously inquire about new behavior to produce future value. Healthcare is an information-intensive process. Pressures for management in information technology are increasing as healthcare organizations feature to lower costs, improve quality, and increase access to care. Healthcare organizations have developed better and more complex. Information technology must keep up with the dual effects of organizational complication and continuous progress in medical technology. The literature review will discuss how health care organizations can provide effective care by the intellectual use of information.
Pasher, E., & Ronen, T. (2011). The complete guide to knowledge management: A strategic plan to leverage your company 's intellectual capital. Hoboken, N.J: John Wiley & Sons.
Macroeconomics is worried about the economy as a whole, such as output and growth that measures the total income of the economy in goods and services and inflation which the percentage increases yearly in the price of goods and services. Employment is also included which is all about the changes in the labour market. The objective of the UK’s government is to achieve stability of growth and employment. This is for the UK to build a strong economic future. The government aims to raise the rates of encouraging growth and achieve rising success by creating economic opportunities for the public.
Hansen M., Nohria N., and Tierney T. (1999), “What’s your Strategy for Managing Knowledge?,” Harvard Business Review (March 1999), 106–16.
Disequilibrium unemployment is generally caused by real-wage unemployment and demand-deficient unemployment. Real-wage unemployment is usually caused by the power of union or national minimum wage set above the equilibrium wage in the market. In 1970, union power reached the highest and trough at 1990, i...
Unemployment is a major problem that encounters a number of countries in the modern time; as it is considered a result for a lot of deteriorating conditions all over the world. Is a result of many financial breakdowns, capital money policies had to shut downs many firms and factories and to less their employees. Consequently, it leads to many social crises due to the lack of the fundamental providing which the employee gets during work. Logically, governments had to apply certain policies to avoid economic crises and the negative impacts that are left behind financial breakdowns and to protect their people.