Expansionary Monetary Policy
Expansionary fiscal policy, such as the Chancellor of the Exchequer deciding to reduce the standard rate of income tax leads to higher aggregate demand and an increase in equilibrium income and output. In this essay I will examine the factors that are important in determining the macroeconomic effects should such a policy be installed by Gordon Brown (Chancellor of the Exchequer), and I will comment on any suggestions I may have for Gordon Brown in the preparation of his next budget with a brief description on the assumptions that my advice is based.
Macroeconomic Goals
Firstly I would like to examine the macroeconomic goals/aims of Gordon Brown and his fiscal policy. Fiscal policy is the governments plan for spending and taxation, it is designed to steer aggregate demand in some desired direction, which we will investigate in greater detail later on today. Macroeconomic policy is a phrase used to describe actions taken by governments to manipulate the economy to influence the level of inflation and unemployment. Along with balance of payments and high stable economic growth, low inflation and high employment are two of the main four macroeconomic goals of the government. In practice, macroeconomic policies could be used to refer either to policies sought to influence aggregate supply or to policies that sought to influence aggregate demand. We will investigate aggregate supply and aggregate demand both in the long run and in the short run and show their effects on macroeconomic policy.
In this graph we can see that as a result of a decrease in income taxes, aggregate demand will shift to the right from AD to AD1. Aggregate supply in the long run is a vertical line that keeps Y at the natural rate of Y*, which inturn produces constant output and increased prices which is an affect of increased inflation.
Here we can see that aggregate supply in the short run is a horizontal line. An increase of the aggregate demand curve form AD to AD1 results in increased output should income taxes be decreased while keeping the price level constant at P*. In this example Gordon Brown is able to achieve at least 3 of his 4 macroeconomic goals. Growth being the obvious as output increases from Y to Y1, increased growth produces jobs hence increased employment, all while the price level stays constant at P...
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...o be fast acting and make him look favorable in the public eye. The economy currently is prospering so my initial advice to Mr. Brown would be to leave a good thing alone and leave the income tax rate as is. However coming up on an election Mr. Brown wants to show me that he’s doing something for me and a tax cut will be looked upon favorably in the public eye. Mr. Brown might consider cutting taxes and in the long run as discussed above the economy will keep the price level constant et increase output, he can deal with fixing the long run consequences of an increased price level and a return to the natural rate of Income after he is elected. To the non-economist a decrease in taxes will seem beneficial due to the increase in aggregate demand: Output will increase, employment will increase as will the wage rate, all while the interest rate stays constant. Assuming that Mr. Brown doesn’t have any personal goals and is solely interested in the well being of the U.K. economy I would suggest to keep the current fiscal policy, for reasons backed up by the Ricardian Equivalence and the fact that the current macroeconomic conditions in the U.K. are favorable and don’t need to be fixed.
This book review covers Policing Gangs in America by Charles Katz and Vincent Webb. Charles Katz has a Ph.D. in Criminal Justice, while Vincent Webb has a Ph.D. in Sociology, making both qualified to conduct and discuss research on gangs. Research for Policing Gangs in America was gathered in four cities across the American Southwest; Inglewood, California, Albuquerque, New Mexico, Las Vegas, Nevada, and Phoenix, Arizona. This review will summarize and discuss the main points of each chapter, then cover the relationship between the literature and class discussions in Introduction to Policing and finally it will note the strengths and weaknesses of book.
Schmidt, L. M., & O'Reilly, J. T. (2007). Gangs and Law Enforcement: A Guide for Dealing with Gang-Related Violence. Springfield: Charles C Thomas Publisher, LTD.
In the beginning of the novel, Sethe, who is resigned to her isolated life, keeps herself apart from everyone around her. Her daily life has been greatly influenced by her past which is indicated by her conversation with Paul D. She has tolerated much which she tries to forget but because of her past memories she continues to suffer. Gradually life becomes intolerable for her. In 124 Bluestone Road, the wandering of the ghost of her murdered daughter also reminds Sethe the time when she had to cut the throat of her baby in order to protect her from the tyranny of slavery. She realizes that her mother had done injustice of taking her life when she needed love and care as an infant. The ghost of her daughter feels
In today’s economy, fiscal policy plays a vital role in influencing the financial direction and economic goals of the United States. Furthermore, government spending and taxation are two main economic activities that influence a nation’s economy and are generally referred to as the fiscal policy. Not only does the fiscal policy help determine a nation’s budget, but it also determines how much resources need to be allocated to help achieve their economic goal. Therefore, the fiscal policy has many functions and consists of allocating, distributing, stabilizing and developing the nation’s economy.
The scars on Sethe’s back serve as another testament to her disfiguring and dehumanizing years as a slave. Like the ghost, the scars also work as a metaphor for the way that past tragedies affect us psychologically, “haunting” or “scarring” us for life. More specifically, the tree shape formed by the scars might symbolize Sethe’s incomplete family tree. It could also symbolize the burden of existence itself, through an allusion to the “tree of knowledge” from which Adam and Eve ate, initiating their mortality and suffering. Sethe’s “tree” may also offer insight into the empowering abilities of interpretation. In the same way that the white men are able to justify and increase their power over the slaves by “studying” and interpreting them according to their own whims, Amy’s interpretation of Sethe’s mass of ugly scars as a “chokecherry tree” transforms a story of pain and oppression into one of survival.
Throughout the centuries, gangs have been rapidly growing. As early as the 1730s different groups of people in Europe began forming gangs. At first they were composed of people upset with the government who started riots to rebel against the government. Decades later, gangs began to spread worldwide very quickly. Gangs made their way all the way to the United States, or the 13 colonies at the time. They were largely created by people upset with the government. There were gangs for federalists supporters, and gangs for people who supported the Anti-federalists (“Gangs” 2015). As centuries passed, people formed gangs for different reasons. Beginning in the 1940s in cities like New York, Boston, Philadelphia, Chicago and Detroit, gangs of white
Fiscal Policy involves the Government changing the levels of Taxation and Government Spending in order to influence AD (Aggregate Demand) and therefore the level of economic activity.
Tony Morrison’s novel Beloved, explores how slavery effects of the lives of former slaves. Morrison focuses more specifically on how the women in these situations are affected. One of the main areas affected in the lives of these women is motherhood. By describing the experiences of the mothers in her story (primarily Baby Suggs and Sethe) Morrison shows how slavery warped and shaped motherhood, and the relationships between mothers and children of the enslaved. In Beloved the slavery culture separates mothers and children both physically and emotionally.
Conclusively, all of the policies discussed have both advantageous and disadvantageous affects, and so there currently is no definite answer to the problem. Inflation can be reduced; however doing so would sacrifice the fragile recovery of the British economy. The government must therefore decide which process is more important for the long-term health of the British economy, and decide on the policies that will best improve either situation. Either way, living standards are set to fall, and real income will also decrease in the foreseeable future.
Gangs originated in the mid 1800’s in the cardinal direction using it as a method to defend themselves against outsiders.The idea of gangs became populous, powerful, and a broad influence. But like all powers, they tend to corrupt and recognizes violence as a way of getting what they want faster than other methods.They turn violence into fun, profit, and control.Creating a situation that affects youth in today’s society.
(a) Provide an example of how a government could use fiscal policy to achieve an increase
...from slavery as well as the misery slavery itself causes her. Ultimately, Sethe makes a choice to let go of the past as she releases Beloved's hand and thus moves on to the future. In the very last segment of the novel, the narrator notes that finally "they forgot [Beloved]. Like an unpleasant dream during a troubling sleep" (290). Sethe no longer represses history but actually lets it go. As a result, Beloved becomes nothing more than "an unpleasant dream," suggesting that she does not exist as a real person, but rather has no substance as a mere fantasy or hallucination which has no value to the community or to Sethe, Denver, or Paul D. Sethe moves on with her life as she has already faced the past, tried to make amends for her mistakes, and finally realizes her own value in life.
Although gang members insist that gangs are the only way to ensure success today, others maintain that the only way to survive is to eliminate them. Many gangs threaten the safety of everyone in their 'hood (territory or neighborhood). Innocent people living in gang war-torn towns live in constant fear of death. However, for children who have no one to look up to and no future to look forward to, gangs can become their surrogate family. Gangs are not only a set of friends or a nights activity. Gangs are a way of life. There is no way to eliminate them, but changing the violent nature of many gangs is possible. Admittedly, gangs cause many serious problems, but they could end up helping more people than they hurt.
It is difficult for government to achieve all the macroeconomics objectives at the same time. Conflicts between macroeconomics objectives means a policy irritating aggregate demand may reduce unemployment in the short term but launch a period of higher inflation and exacerbate the current account of the balance of payments which can also dividend into main objectives and additional objectives (N. T. Macdonald,
After analyzing the data and the theory, we have provided our conclusion weather tax cut is better for the stimulation of growth or Government spending is? This report explains the big macroeconomic debates of the present times. It seeks to explore the debate within fiscal policy itself between tax cuts and government spending. We have tried to explain the argument through some theories and through some data collected from Indian econ...