Economic Growth Course Works Samples For Students

Introduction

Cambodia is a small country located in the southern region of the Indo-China peninsula in Southeast Asia. Cambodia has an area that covers roughly 181,035 square kilometers, with a population of 15,288,489, according to a 2019 census. Vietnam borders it to the east, Laos to the northeast, Thailand to the northwest, and the Gulf of Thailand (its only direct access to a large body of water for sea-bound trade and another key) to the southwest.

The country has a nominal GDP of $26.628 Billion; and a Purchasing Power Parity (PPP) GDP of $76.635. It has a GDP per capita of $4,645. These ...

Jedi monetary policy is an article that was written by Jonathan Wright in Washington. The article was written on 8th September 2011. The article is criticizes the actions that the Swiss national bank has taken to stimulate the economic growth of the country.

According to the article, the Swiss government aimed at stimulating the economic growth by the applicatication of macroeconomic policies. The Swiss government aimed at increasing the economic growth rate to at least 6 percent. The writer of the article points out several policies that the Swiss national bank could use to stimulate the economy. He shows ...

Overview of economic performance of GCC countries

The Gulf Cooperation Council comprising of Kuwait, Bahrain, United Arab Emirates, Qatar, Saudi Arabia and Oman are oil rich nations representing an aggregate of 35.7 percent of global oil reserves. These nations are the largest exporter and producer of petroleum and have experienced excellent economic growth since the year 2008. The economic growth rate of the GCC nations has increased threefold to $1.4 trillion in the year 2011. The estimated growth of Gross Domestic Product for the GCC nations in the year 2013 is forecasted to reach around $1.5 trillion. The aggregate growth of Gross Domestic Product in the ...

1. Austerity is the reduction in the deficit financing through reducing the public services that are provide to the citizens. The reduced government spending through provision of less public goods help to avoid deficit financing (Joshua, 2). On the other hand, economic growth is the increase in the total output in the economy. It is argued that austerity policies hinder economic growth since reduced deficit financing lead to less employment hence output in the economy reduces. Another policy that Obama administration has put in place to facilitate austerity is to reduce government spending in some sectors of the economy ...

Uganda

As a country well endowed with many substantial resources, Uganda, an African country, is blessed with great economic potential. However, years of self ruling and unstable economic management has made this country one of the least developed country, with a high percentage of poverty. The current president of Uganda, Museveni, helped in rebuilding the economy by negotiating a policy framework paper with the IMF and the World Bank. According to World Bank’s Worldwide Governance Indicators, the country annually loses 768.9 billion shillings or $286 million due to the severe problem of corruption. However, Uganda has maintained a stable debt position due to ...

According to International Monetary Fund (IMF), China recorded $6,747 nominal GDP per capita and $9,844 GDP per capita (PPP) in the year 2013. China's population approximation is at 1,392,472,656 people; its fertility rate is 1.58 births per woman, and life expectancy is approximately 73.49 years. Population growth rate of republic of china is at 0.46% per annum. China engages in international trade with countries all over the world, therefore, it experiences open economy (Cypher, 2014, p.237).

China has overtaken Latin America countries in competitiveness in international markets. Its well structured economy and strategic ...

Section 1: Explain and discuss the various oil and gas price drivers and make a clear recommendation of the trend you believe prices will follow and why.

Economic cycles of boom and recession have a major impact on oil and gas prices. Demand for oil is significantly affected by the two economic cycles. The Department of Energy and Climate Change (2012) observed that studies have shown that there is a very close link between global GDP growth and oil demand. This link has been identified in various business cycles that have been identified as having a significant impact on economic growth. Business cycles ...

Abstract

A regional bank, XYZ Bank, has decided to open an office overseas for serving those businesses that are expanding internationally. India has been chosen as a large financial centre that is believed to help in increasing customer base and expand business. The various factors favourable for investing in India are its political stability, federal legal system, availability of managerial and technical skills, good infrastructure, favourable economic policies and relaxation of restrictions in banking sector. However, some key challenges are cultural diversity, need of legal expertise in opening a wholly owned subsidiary and regulatory restrictions in banking sector. In spite of the ...

Introduction:

Sagarmatha was open to foreign tourists in 1950 after many decades of isolation. Annual tourist visit in the beginning was very less until government realized the potential of the region and started investing in it (World Tourism Organization, 2008). Since then, the majestic mountain ranges have become the centre of attraction for many visitors, attracting a number of tourists each year for trekking and mountaineering activities. The objective of this paper is to analyse the impact on the economy of Sagarmatha after the evolution of tourism industry through STEEP analysis. The analysis will attempt to cover key trends in each ...

I agree that sustainable economic development and social stability in China will be a mirage even when institutional reforms in leadership succession, anti-corruption, environmental protection and the legal system have been reformed. All these are good practises that cement the gains of economic growth, but they cannot independently spark economic growth. It is clear that the corruption discredits the legitimacy of the regime, and in turn scenes of demonstrations could be precipitated. It goes without saying that civilian unrest discredits investments and political growth, as that witnessed in the 1990s by students in china (Yang, 220).

This is to say ...

- Impact of the Great Depression on the way government set policy

Following the collapse of the stock market in October 1929, the government was forced to embark on various policies in a bid to rescue the collapsing enterprises and to prevent a further economic slump. For instance, the New Deal policies were instituted by President Roosevelt’s administration in order to deal directly with and rescue banks financial institutions which had been affected by the financial crisis leading to the great depression from collapsing (Rothbard, 2008). Further policies included the flexing of the trade barriers and the suspension what was regarded as the ‘gold standard’ which ensured that financial supply would ...

The question “why countries that do not have that much natural resources to boast of often appear more progressive and financially stable than countries that are staggeringly abundant in natural resources?” has been common among citizens of both resource-rich and non-resource-rich countries for a very long time. It is actually logical to think that a country rich in natural resources, especially the point-source and non-renewable ones such as oil, diamonds, and other ores, would outperform those that are less blessed because they already have an edge to begin with. However, according to Sachs & Warner (2001), the opposite happens. Sachs ...

What re some myths about family life in the U.S.?

One of the biggest myths about family life in the U.S. was the myth about the stable and harmonious families that was famously depicted in 1950, even up to some 21st century films wherein the father and every member of the family enjoys their life as a part of that family. The father works hard to provide for his family, while the mother simply does the household chores. According to Eitzen et al. (2009), most husband-wife relationships were empty and in reality, members of the society lived under single-parent family banners with step-parents taking care of them. Divorce was not ...

Globalization has many advantages. The consumers are able to get access to a variety of goods from various producers and at a cheaper price. This improves the standards of living of the consumers. In addition, inefficient producers are removed from the market and this ensures quality products that at low costs (Milward, 2003). Therefore efficient allocation of resources is encouraged. In addition, the relationship between countries improves as people from different countries trade. Globalization also enhances technological transfer and this facilitates faster development of the poor economies.

Globalization however has several disadvantages. The effects of globalization are not the same for ...

Question 1

China and India have emerged as major economic forces, each following their own paths to economic liberalization and globalization. Describe the separate circumstances and strategies which led to their current success. How did communism influence each country and what challenges did their leaders face in making the transition to global capitalism?

China and India have emerged as major economic forces, each following their own paths to economic liberalization and globalization. To start with, China significant move towards economic growth began in 1990s. The government removed price controls (allowing forces of demand and supply to control prices). In addition, it ...

Abstract

This paper has identified articles in www.munKNEE.com by, Lorimer Wilson. It has analyzed the same and presented out the findings. First it presents the general economic principles associated with the article; this is followed by identification of the macroeconomic indices which are also examined into details. A discussion of the indices is followed by possible decisions or forecast that could done under each scenarios.

According to www.munKNEE.com by Loimer, some of the general economic that would relate to the article include but not limited to;
a) The Phillips curve; the higher the rate of unemployment the higher is the ...

Current macroeconomic situation in the U.S

Macroeconomic factors define those economic factors that affect the economy at a larger scale. As per previous research analysis it’s been established that the U.S economy faces an economic downturn every four to six years (US Economic Outlook). As per the article ‘US Economic Outlook for 2014’, the current bull market is presently driving in its fourth year. Despite the fact that the markets are flourishing in this economic year, an average American is not. The major economic cavity of unemployment that poses a huge dilemma to every American still remains persistently high along with the household debt. Moreover the ...

1. Some hyper-globalizers claim we live in a borderless world where states don’t matter. Critique this claim by providing specific examples of the role of state in the context of globalization.

While globalization is incredibly powerful because the borderless world allows for the transfer of jobs, resources to be extracted and mobile individuals to access markets overseas, the role of the state is more important than ever. Amartya Sen's essay "Globalization, Inequality and Global Protest" makes the argument that a globalized world seeks a workforce that is educated, in good health and relatively “free” in order to maximize opportunities for ...

Is Globalization a Peace Producer?

Globalization is defined as upspring of a global society in which political, cultural, economic, and environmental circumstances in one part of the globe have particular significance for people in other parts of the world. (Globalization; Salzman, 2008). The globalization refers to rapidly growing connections between nations, economies, and societies (Barbieri and Schneider, 1999:387). Several literatures or studies have evaluated globalization in the context of international politics and social security to ascertain whether it is a peace producer or not (Blanton and Apodaca, 2007).Of course, most of the literatures have different views on the subject matter. This paper examines globalization in ...

What are the underlying problems facing Fiat’s car division?

Fiat is an Italian company with its business once solely concentrated in Italy. After the post war period, Fiat with the help from Italian government became the number one automobile manufacturer in Italy. Fiat enjoyed that position for almost 50 years without any threat from other European players. However, decades of doing business with ease and with the help of Italian government had created operational, strategic and managerial inefficiencies within the company. For almost 5 decades even with its huge success in the Western European market, Fiat never thought of expanding beyond the region. Finally, by the time it ...

When the Federal Open Market committee met in September, information was released suggesting that the economic has expanded moderately in the past recent months. The unemployment levels remain high while the employment rate remains deprecated. The growth in business has decreased while household spending are increasing. It also revealed that inflation has picked up hence the increased energy prices. The Fed is, therefore, concerned that the economic growth may not be in a strong position, to improve the labor market conditions unless sufficient policies are implemented. They are also concerned that inflation will run under its 2% objective due to the ...

Question one

- Modernization theory is a sociological phenomenon that focuses on the evolution of the society from traditional practices to modern. The study of modernization theory dates back to the 17th century where it focused on the progression of the world driven by technology. Coined by sociologists, the theory entails many disciplines especially in regards to technology. For instance, the theory discusses the advancement of the mass media/communication sector in relation to the societal changes in culture, politics and economy. Furthermore, the theory enlightens the society on the emergence of advanced technology and communication systems that have reduced the world to ...

Any development program comes with its own challenges. Before establishing an investment, there is needed to look at the effects that the development will have on the society. Putting all the factors into consideration will assist an investor to make a considerate decision. Some of the challenges can be on short term while others are experienced even in the long run.

Question 1

Construction of the private prison comes with its advantages and advantages. It is expected that the prison will be able to generate revenue that people will use in the development of the community. The prison will also lead to ...

Introduction

Today, international trade is a major force that has a great role in driving the economy. Businesses from different parts of the world are linking with each other with an aim of expanding their operations and increase their profitability. Florida is among the best performing states in international trade. It’s a major tourist attraction and business hub with state-of-the-art infrastructure (Harrington 2010). Many local and international firms have their headquarters in Florida since it’s easier to trade with the rest of the world from here. Among the best performing firms that are actually contributing to Florida’s economic growth is ...

In this section, I will provide a comparison of the inflation rate and economic growth of Belgium and the Eurozone. The inflation rate is defined as the percentage change in the price index from the preceding period. It captures the rate of change of prices calculated on a monthly or annual basis. The data on the inflation rate for Belgium and the Eurozone are presented below which I obtained from the news release of Eurostat (2013).

Meanwhile, economic growth is defined as the increase in the capacity of the economy to produce goods and services, compared from one period to another. ...

Executive Summary

This paper provides background information on Indonesia, which is a prospective location for the expansion of Foxconn's operations, particularly for the establishment of its manufacturing facility.

Economic climate

- Indonesia incurred an economic growth of 6.1% and 6.4% in 2010 and 2011, respectively (CIA, n.d.).
- The new government administration has introduced various financial reforms that further aid economic development.
- It has managed to achieve growth even during the global economic crisis.
- It is able to maintain low levels of debt.
- Its credit rating has been upgraded to the investment grade in ...

In the recent years, there has been a need to increase advertisements on blood donation. These advertisements have been done through posters, radio stations and even the television stations. The aim is to reach as many people as possible so that the problem of blood shortage in hospitals can be addressed once and for all. Blood shortage has been caused by various factors that will be addressed by this research. In addition, these advertisements have some impacts on society. The aim of this research paper is to evaluate the causes of advertisements encouraging blood donations. The paper will also evaluate ...

A country is considered an “Emerging Market” when its social and business activities are in a marked accelerated growth. The term “Emerging Market” was first put into use by World Bank economist Antoine van Agtmael to define a country that is transitioning from “developing” to “developed”. Ian Bremmer, a political scientist characterizes an “Emerging Market” as a country where economics and politics are equal. The 2008 Emerging Economy Report defines emerging markets as those regions that are undergoing rapid “informationalization” and have limited industrialization. Scholars from both Harvard Business School and Yale School of Management are studying ...

The most important economic policy today is one that will spur economic growth. The economy has to emerge from the serious problems it is currently engulfed in which include: high unemployment, reduced consumer demand, a shrinking middle class, a large national deficit and the mishaps of the housing estate. Unemployment is a major issue of concern to date. It is critical that a policy that will spur economic growth be implemented because the other variables are largely dependent on the level of economic growth (Von Mises, 2006). A fiscal policy that will increase incomes of household will raise aggregate demand, and then firms ...

1. Claims of Globalism

Globalism is mesh of inter-reliance at a multi-continental level whereby, there is exchange of people, information, and capital between continents. An increase in Globalism is termed as Globalization while a decrease is De-globalization.

Globalization integrates global markets and liberalizes them

Globalism integrates global markets via the inter-reliance among the continents and liberalizes global markets through the divide between a state’s economy and the government, such that there is minimal interference from the government. The absence of government interference increases social interaction among the continents and the exchange of technology, labor, and wealth.

Globalization is unavoidable and permanent

The establishment of inter-reliance among the continents has been going on and will continue to take ...

Introduction

The IFRS are accounting standards, rules and principles that were introduced by an independent organization in the United Kingdom, known as the International Accountants Standards Board. The institution puts forward that the standards would better serve public companies worldwide than the local standards in the country due to the aspect of comparability, transparency and economic growth. There are several countries that have adopted the IFRS over the recent years. The transition to IFRS for the companies in these countries has considerable costs. There are technical and training costs that are incurred that may cause several companies to be cautious ...

Economics:

Economics is the study of how the little available resources can be used to satisfy wants that are many, since wants are many on the other hand resources available to satisfy them are limited in supply, there is need for one to choose among the wants and make a decision of what the few resources to satisfy first leaving the rest. In economics, factor like inflation and deflation, marker prices, interest rates, exchange rates in the market are studied. Economics has been divided into two major subdivision; microeconomics and macroeconomics.
The word microeconomics is a combination of two words; micro ...

I disagree with the title of this essay and argue that buying a home is better than renting one because it breeds economic growth, encourages a sense of family pride and helps to lend continuity to a community.

A. Home Ownership

1. Creates progress within the community
2. Creates pride amongst families

B. Buying a Home

1. Pride in home ownership
2. Increases economic flow
3. Made more affordable for families

C. Home ownership

1. Foreigners come to the United States
2. Families want the American Dream

D. Leasing a Home

1. Families can buy homes through leasing
2. Economic growth is increased

Body

The ownership of homes is a vital part of ...

Impact of recent changes in India, Japan, and other Asian countries on your own life

India, Japan, China and other Asian countries have emerged to be economic power houses over the past few decades. Economists attribute this paradigm shift to accelerated integration to the international economy that happened in 1979- 2002. Foreign direct investment (FDI) increased during this period to over US$50 billion in china alone.

India’s independence led to a steady growth in economy and per capita income due to a modern economy. However, this growth was not optimal due to adoption of “License Raj”. This meant that you needed the license in order to do virtually anything. For instance you could ...

A. Justify your choice of one significant environmental or physical geographic factor that contributed to the development of one early human society from the following list:

• Mesopotamia

• Indus River Valley

• Yellow River Valley

• Egypt

• Andean civilizations

As referred above, the development of Indus Valley civilisation took place at the time when other important early civilisations like Egyptian and Mesopotamian were fostering. The single akin significant environmental or physical geographic factor that is evident in the progression is the role of the aquatic presence around.

The human society arouses in the vicinity of Indus Valley From 3500 to 2600 BC. In this era, the watercourse supplemented human race with options of food and shelter that eventually became the motivation for long ...

South Africa

South Africa is one of the esteemed and has been projected for growth in the African continent. The Republic of South Africa is geographically located at the southern part of the vast Africa content neighbored by Swaziland and Mozambique to the east and Zimbabwe Namibia and Botswana to the north. Its coastline extends along the Indian oceans and the south Atlantic. On estimation, it measures approximately 2798 kilometers. The country measures an area of about 1,221,037 square kilometers (Feinstein, 2005). According to the national statistics, the country had a population of 52,981,991 citizens and ranked as ...

Supply chain is the systematic process involving individuals, information, activities, and resources that are all used to move a finished product from the supplier to the final consumer. Supply chain management in the 21st century, requires companies to introduce green supply chains and sustainable logistics. Rapidly depleting economic resources put immense pressure on suppliers to make use of ‘environment friendly’ supply and distribution channels.

Taking initiatives for greening the supply chains can have a large impact on both economic and transport growth. However, various measures must be taken to decouple both, so that there is no conflict between the two. ...

It has been 5 years now, but the world economy is still hovering over with ill effects of global economic recession. Different economist define recession in a different way but one common definition which can be derived is that recession is long lasting and prime reason for slowdown to economic activity(GDP). GDP is considered to be the broadest indicator to measure economic activity. Our following section will discuss how the economic activities in US has actually decreased since the beginning of market turmoil.

Fall in Consumer Consumption Expenditure:

Consumption Expenditure is the most integral component of GDP calculation and consumer consumption accounts for 70% ...

The shadow banking system, also referred to as the shadow financial system, has been informally described as the unregulated financial activities conducted by regulated institutions. They refer to the financial intermediaries, which are involved in the facilitation of the creation of credit across the global financial system. The members of the shadow banking systems are not subject to regulatory oversight. It also refers to the network of financial institutions, which are comprised of non-depository banks, for example structured investment vehicle, investment banks, hedge funds, conduits, money market funds, and non-bank financial institutions (Batchvarov, 2013, p. 348). Shadow banking institutions ...

Part A

Education is one of the major concerns that any government addresses. The world nations embrace education as the key strategy towards attaining economic growth and development. Politicians have advocated for a constant funding to the higher institutions hence low fees to enable high standards of education. This is an aim to improve its accessibility as a way of enhancing skills in the society and more so increase innovation, science, and technology (Levin, 2005).

In a case where the government maintains a constant university funding, the demand for higher education increases in the country. The initial equilibrium price for education will decrease due to ...

Abstract

Economics is a subject that has its recognition in almost every walk of life. Inevitably, there is no single definition of the term “Economics” exist in the world, because every author has had defined the concept in somewhat different manner. Adam Smith is known as the Father of Economics (FOE) and according to his concept, “Economics is the study of wealth that deals with the buying and selling of products in total”

There are basically two types of economics predominantly comprised on microeconomics and macroeconomics and both of these provisions are important. According to the specifications, microeconomics ...

The major players in the U.S. automotive industry have had to revisit their policies, strategies and manufacturing practices amid challenges resulting from today’s business environment. Traditionally Klier and Rubenstein (2009) noted that the industry players like Ford and General Motors once produced many of the intermediate parts in-house. Today, the situation is strikingly different as the auto-manufacturers import most of the materials needed from foreign counterparts. This paper explores the causes and effects of the latter state-of-affairs. The U.S. automotive manufacturing industry has resorted to importing most of its materials from foreign manufacturers mainly due to the competition ...

The relationship between problem definitions and policy measures in the policy document

Context

Tourism is connected to various national and international economic aspects, as well as environmental, governmental and social factors (PKF 34). Discussing about Iceland’s tourism all these factors and others are to be considered when evaluating the development plan described in the “Promote Iceland” document. While the country’s internal macro economy (comprising politic, economic, social, technologic, environmental or legal aspects) is significant in explaining the trends in the tourism industry, Iceland’s strategies for developing its tourism hold into account also the macroeconomic aspects of other countries, which constitute potential tourism source for Iceland, and “ ...

The Intergovernmental Panel on Climate Change (IPCC) published the scenarios A1, A2, B1, and B2 in the year 2000. They estimate the impact of future population growths on the environment especially concerning harmful emissions. They represent different circumstances involving population, social, economic, technical, and environmental development in the 21 century. They apply two groups of differing trends. The first set is between strong economic values versus strong economic values. The second set is between globalization and regionalization.

- What do the four storylines predict about how the world’s population might change over the 110 years from 1990 to 2100?

A1 refers to a situation where there is a lot of economic growth and introduction of better technologies. A1 emphasizes the coming together of the four ...

Introduction

Civic engagement entails the various ways that the residents of a place are involved in so as to better the living or welfare conditions of others. This is aimed at shaping as well as determining the future of that particular community. Traditionally, civic engagement has been viewed and limited to the youth but successful community development projects have reflected the importance of involving every stakeholder. Precisely, civic engagement is the making of a difference by combining the efforts and skills of the community members then allocating them the necessary resources to make that difference. This is in an effort to promote ...

The Maastricht Treaty launched the European Monetary Union in the year 1992. The union comprised of two parts, which included the creation of euro the common currency and creation of the European Central Bank, which coordinates all monetary policies in the Eurozone. The treaty also created the rules for countries willing to join the union. The other element of the treaty was the national central banks of the 16 member countries. European Monetary Union creation has led to price stability and proper management of public finances (McKay Volz & Wolfinger 2011).The final phase of the single currency introduction ...

Regaining Southern Power: Comparing Whites in the South after the Civil War with the Civil Rights Movement of the 1960s

It is common to hear people talk about the Civil War as a war that was fought to abolish slavery. It is cited as an example of American determination to bring freedom to all regardless of past wrongs. This narrative continues with the northern states-- the Union-- as the victor, and the eventual abolition of slavery. However, the American Civil War, its causes, and its eventual effects are much more complex than this narrative belies. After the American Civil War, there was a power struggle in the South; white Southerners used many tactics to regain power after the war officially ended.
...

An unanticipated change in the growth rate of aggregate demand affects production and employment before they affect prices since an increase in demand, demands more production to satisfy the demands of people which affects employment since suppliers have to produce more to meet increasing demands, prices are affected later in that they go up since there is no change in real production and the demand is high (Web, 2003).

Reasons and causes for the downward tailspin of the economy:

High tax rates and increase in interest rates from banks. This reduces the quantity of products and services produced by suppliers due to high costs of production brought about by ...

The Democrat deficit reduction plan

This plan by the democrats is intended at realizing roughly $4.4 trillion in deficit cutback. This will alternatively lead to the payment of the cost for the American Jobs Act that adds up to a total of $447 billion. In summary, the Democratic Party aims at reducing the U.S deficit and cutting down fiscal spending by the federal government. It seeks to do so by first and foremost, cutting expenditure as in the Budget Control act by $1.2 trillion. Secondly, it aims to trimming expenditure on mandatory programs as follows:

- Reducing overpayments in Medicare which adds up to $248 ...

Executive summary

China is the world’s most populous country and a single party state in East Asia. The country has had a dynamic economic environment and impressive development becoming a key player in the global market. (Suzanne, 2012) With its economic growth rate ranging from 13% to 9% since 2007, the country has scaled to become the world’s largest exporter and the second largest economy after U.S. in 2012. China’s population in 2012 was 1.34 Billion with a growth rate of 0.48% and a gender ratio (men/women) of 1.06. In addition, 47% of the country’s population lives in urban centers with concentration ...

The law of comparative advantage has, for a long time, been used as the basis of international trade. The law is one of the main potential explanations for income growth rates and higher incomes of open economies. International trade currently accounts for about 25% of the worlds GDP, thanks to the liberalization of trade and the increase in foreign direct investment. Countries and companies trade with each other because of the gains or benefits that accrue from the exchange of goods and services to the trading countries. According to the law of comparative advantage, countries should produce the goods in ...

Several geographic and environmental factors play significant roles in shaping trade and commerce. A nations’ development relies on these factors to ensure sustainability and in most cases these environmental factors affect human migration and settlement. Migration patterns and networks allow societies of different backgrounds to interact and create new communities amongst themselves. Ancient civilizations such Mesopotamia and Egypt experienced similar developments based on the environment. The United States too could attribute its development in trade and commerce due to geographical factors such as location and climate. This research evaluates the impact of these two environmental factors on the development ...

Fiscal policy is the governmental instrument or program, which aims to stabilize economic situation and to improve economic health of the country. It usually deals with the purchase of goods and services as well as with the transfer payments in the country. Therefore, it influences the type and the level of taxes, optimal for the economy. Governmental intervention through fiscal policy usually aims to affect unemployment level, economic output and the level of prices in the economy. If there is a fiscal surplus (the revenues exceed expenditures) or the level of deficit is decreasing, compared to the previous periods, fiscal ...