This study investigates the short-term relationship between the UK stock market index (FTSE 100) and six macroeconomic variables during the period 2000-2013 using a multivariate vector autoregression and Granger causality tests. Variance decomposition and impulse response functions are used to measure the shocks of a variable from the other variables and the Granger causality test is used to investigate the lead-lag relationships among these variables. Introduction The purpose

You may have already studied microeconomics, which looks at supply, demand and prices for individual goods. Macroeconomics looks at the bigger picture and involves the study of the economy as a whole. National income Let us start by looking at a simple example - a 'two sector' economy made up of households (consumers) and firms (producers) -and use this to develop the idea of national income. To start with we will ignore the impact of government policy and overseas sectors. Households

Macroeconomics IS-LM Basics A) The IS curve slopes downward and to the right. B) The LM curve slopes upward and to the right. C) The slope of the LM curve depends on the interest sensitivity of money demand. An elastic money demand function caused the LM curve to be relatively flat. An inelastic money demand function caused the LM curve to be steep. D) The slope of the IS curve depends on the slope of the investment function. If investment is highly interest elastic, then the IS curve

Introduction 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

exchanged between consumer & the business. There are two main branches of economics. • Microeconomics • Macroeconomics Microeconomics Microeconomics is a branch of Economics which study how individuals or business firms allocate or manage scarce resources. Supply, demand, elasticity of price, quantity of demand & quantity of supply are some concepts of Microeconomics. Macroeconomics Macroeconomics flows on a wide area rather than microeconomics. It describes about the structure & the behavior of whole

The trends in unemployment affect three important macroeconomics variables: 1) gross domestic product (GDP), 2) unemployment rate, and 3) the inflation rate. The basic definition of unemployment is without work. In macroeconomics, unemployment has a very precise definition and different types of unemployment. Unemployment is defined as the total number of adults (aged 16 years or older) who are willing and able to work and who are actively looking for work but have not found a job. (Miller 140).

INTRODUCTION: Macroeconomic stability means that’s all the macroeconomic variables such as (unemployment, inflation, economic growth GDP, investment, saving etc) are in that condition that they makes economy healthy and stable. KEY PRIORITY ISSUES: Unemployment Policies for macroeconomic stability Keep IMF program on track. Role of government as a development agent. Industrial restructuring. Control of inflation Policies for macroeconomic stability: If the situation of the economy will be

When searching and analyzing which topic to choose for my research paper I was a little bit confused but then I stopped at a very interesting for me and hopefully for my group mates topic which sounds Economic Impacts of Hispanic Immigration. I have chosen this topic as it is very actual and troublesome situation for many American workers. For the beginning I choose one source (article) where I can discus the topic. Does Immigration Hurt U.S. Workers? – Nowadays it is the main meaningful and very

benefits every citizen and reduces the overall burden to it. We consider the recent comprehensive review on spending. Many countries in the world have been suffering a recession in their economies and UK has not been an exception. A recession is a macroeconomic term describing one of the two business cycles that economies go through. The business cycles is characterized by either a boom where there are more business activities carried with a rapid economic growth and points of recession where there is

The main components of macroeconomic policy are monetary and fiscal policy. The main aims of macroeconomic policy are continued economic growth, high employment, stable prices (low inflation), an elevation in average living standards, and a maintainable stance on the balance of payments (Macroeconomics). Practically all governments apply macroeconomic policies to reach policy goals and to improve the workings of the economy. Economic growth is important for reducing poverty levels. Continued