Economics Class Questionnaire

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BUSINESS ECONOMICS Questions and Answers to the following topics: 1. Control of Inflation and Deflation 2. Upsurge in the Rate of Employment 3. Open Market Operations 4. Different Types of Employment 1. Control of Inflation and Deflation: Question: 1.A)Analyse both the conventional and unconventional tools used by central banks. Monetary policy The actions of a central bank, currency board or other regulatory committee that determines the size and rate of growth of the money supply, which in turn affects the interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (Bank Reserves). The monetary policy differentiates from country to country depending upon their economic conditions. In the less creating nations like India or Pakistan its destination may be the upkeep of financial dependability and help at present investment improvement. In the developed countries its objectives may be to achieve full employment, without inflation. There are several other objectives that are to be kept in my mind, which are: 1. Control of Inflation and Deflation: Inflation and deflation both are not suitable for the economy. In the event that the value level is equitable and there is an alteration between the value and expense, rate of out put can increase. Financial approach is utilized to arrange the expense and cost. So value soundness is accomplished through the financial arrangement. 2. Exchange Stability: Monetary policy’s second objective is to achieve the stable foreign exchange rate. If the rate of exchange is stable it shows that economic condition of the country is stable. 3. Economic Development: Monetar... ... middle of paper ... ...of Economics, Economic Jpurnal,56,172-187 Mankiw, N.G.(2001) Principles of Economics, Third Edition, Thomson/South-Western University, Ohio Summers, L.H(1989), The meaning of Unemployment, Advanced Macroeconomics, 78, 212-240 Pigou’s. P(1935). Keynesian Theory of Unemployment, Business economics Journal, 286-324 Gosh(2002) Central Bank Secrecy in the Foreign Exchange Market, Oxford, Oxford University Press Alesina, A & R. Perotti(1997)” Fiscal Adjustments in OECD Countries: Composition and Macroeconomics Effects.’ IMF Staff Papers, 92,571-89 Devarajan, S.V.Swaroop, M.Yonk(1996) “The composition of Public Economic Growth.’ Journal of Monetary Economics, 37. 313-55 Keynes, John M.(1956) The General Theory of Unemployment, Interest and Money: London, McMillan Kuznets, M(1984) “National Income: A new Version,’ Review of Economics and Statistics, 30,104-24
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