Essays on Multiplier

Company Profile

Revered as the biggest e-commerce website around the globe, Amazon Inc. is an American multinational entity engaged in e-commerce selling and cloud computing. Founded in the year 1994 by Jeff Bezos, the company is headquartered in Seattle, Washington DC. Amazon is the biggest e-retailer in terms of revenue and market capitalization. Beginning with the modest background of selling books and Blu-Ray DVD’s, Amazon today offers more than billion products and is now operating globally with presence in 19 countries. The company is listed on NASDAQ under the ticker symbol of AMZN and is also the constituent of NASDAQ ...

Organizational Design

Contrary to typical assumptions that will associate the concept of organization design with that of structuring organizational charts and the likes, organization design has a more comprehensive and practical designation than it really sounds. There is a holistic way of looking at organization design –it is the modeling and alignment of all the involved elements of an organization with the intention of achieving an agreed upon objective. Organizational design is a forthright organizational process with a pertinence so outspoken, that it should literally be addressed in every status meeting of every department on that organization. Organization design is carried ...

Deficit spending refers to the spending of funds more than the income. In government, deficit spending occurs when the government expenditure exceed the revenues collected over a specified fiscal period (Investopedia, 2016b). An important note on government deficit spending is that it begins at the budgeting stage where the government plans to spend more than it expects to get in revenues. The consequence of this is that the government has to borrow even with the achievement of the highest estimates in revenue collection. The government finances the deficit through two main ways. Traditionally, the major method of meeting the ...

The main goal of the state at all stages of its development is the stabilization of the economy. At the present time, the state actively uses the tools of intervention in the economy. The main 2 types of state intervention in the market economy include fiscal and monetary policies. Fiscal policy has been a key policy tool in addressing the aggregate demand consequences of the financial crisis in the United States. (Follette & Lutz, 2010)

Objectives of fiscal policy as any stabilization (countercyclical) policies aimed at smoothing cyclical fluctuations in the economy are to ensure:

Stable economic growth; Full employment (primarily a solution to the problem of cyclical unemployment); Stable price level (problem of inflation). (Strauch & Hagen, 2000) Fiscal policy ...

1. How were the conditions in 1935 and 2013 similar? What did John Maynard Keynes propose to resolve this crisis in his book? Both 1935 and 2013 are two years during which the world’s economy went through economic crises. Specifically, 1935 experienced the Great Depression, while 2013 faced the global financial crisis. The economists of the time predicted that the economy would come out of the depression without the intervention of the government (Kirshner 315). In 1935, unemployment was extremely high. In 1936, Keynes published his book ‘General Theory of Employment, Theory and Interest.’ While other economists suggested ...

Statement of Problem

Uber is a ride hailing mobile application that has gained significant popularity in different countries, especially their home country the United States of America and the rising market in India. Every day, hundreds of thousands of people hail a cab from the application and enjoy the efficient and customer oriented services. One problem that has caused several problems for the application has been surge pricing. It has created a significant outburst of anger and disappointment for loyal customers as every time they open the application for booking a ride they are informed about the rate multiplier. This means customers ...

Introduction. Short mentions of the history of Samuelson Multiplier-Accelerator Model or the Hansel-Samuelson Model and the idea of the paper. Thesis statement. Models based on the interaction between the accelerator and multiplier are models of Keynesian sense and describe the process of economic transition from one equilibrium state to another when exogenous parameters change. Samuelson Multiplier-Accelerator Model is a model of the business cycle, in which the mechanisms of market fluctuations are explained on the basis of the principle of acceleration and the multiplier concept.

Main body.

Basis of the Samuelson Multiplier-Accelerator Model: Samuelson Multiplier-Accelerator Model includes only the market of ...

Introduction

Sharp Park, which is named after George Sharp, has a long, rich history. Mr. Sharp owned a more than 400-acre estate that he established with a vision for the San Francisco residents to enjoy recreation in a natural setting. When he died together with his wife, the property was left to the San Francisco City Council under strict instructions that it would only be used for recreational purposes. Sharp Park is in California off Highway 1 along the Pacific Ocean, San Francisco. It has existed since 1917; the golf course was established in 1930s. In 1941-internment camp was established ...

The dynamics of the economy when the interest rates are at almost zero are a bit complicated, especially because the monetary policies have very little effect on the economy. However, the interplay between the fiscal and monetary policies will bring the economy to stabilization even though with great difficulty. Some of the factors at play bring a tradeoff between the success and failure of the possible policies. For example, the policies that will bring down the level of unemployment will tend to push up inflation. However, factors that will push the GDP upwards will also lower the rate of ...

Answer 1: The factors that influence the Fed's balance sheet are its assets and liabilities. In assets Fed hold securities like U.S Treasury which is controlled by open market operations. Then the foreign exchange reserves issued by the foreign governments. The SDR(special drawing rights) and gold are official asset, other Federal Reserve asset and the discount loan. In liabilities, the currency in circulation, the reserves i.e. the accounts with commercial bank , government accounts and other liabilities which mainly consist of reserve repo rate. The asset that has increased Fed balance are purchase of treasury and mortgage bonds(Kearns). ...

The IS LM model or the Hicks –Hansen model is the macroeconomic tool that shows the relationship between the interest rates and the real output of goods and services and the money market. The intersection of the investment - saving curve or the IS curve and liquidity preference curve or the money supply curve is the general equilibrium in both the markets .This model explains the changes in the national income when the price level is fixed in the short run and also shows the reason for the shift in the aggregate demand curve. It was first developed by ...

Business cycle: periodic fluctuations in the economic activity experienced over time. It is determined by measuring the growth rate of the gross domestic product.

The Circular Flow Diagram: it is an economic model that shows how goods, services and money move within an economy (between producers and consumers). Economic Equilibrium: a condition in which economic forces are balanced in the absence of external influences. The main forces are demand and supply. Effects of leakages from and injections into the spending stream: leakages include savings, imports, and taxes while injections include investment spending, exports and government spending. When leakages exceed ...

Introduction

Labor constitutes a fundamental factor of production, and it is one of the determinants of services and commodity prices. It entails human efforts used in the creation of goods and services, and its rewards are salaries or wages. Unemployment is one of the major economic problems facing many countries, especially developing ones. Attaining full employment level is the objective of most governments since it is an essential driver to achieving economic growth and development. In most developing countries, labor markets are poorly developed, and wages are determined by market forces of demand and supply. As such, labor is poorly ...

Section

Executive Summary In this study, the city wanted to determine the economic value of the Sharp Park and the surrounding coastal trail. Instinctively, one may think of lost revenues, or possible income which may be generated by keeping the golf course. However, in the study, it has been determined that the amount earned from the golf course is actually much lesser than the amount required to maintain such. In fact, the city does not even earn from such property. The expense is greater than the revenues generated. But in the course of the research, it has been ascertained that ...

Recession refers to short period associated with decline in economic activities such as decrease in stock market business, high unemployment rates, poor housing facilities, high cost of due to low purchasing power of the country’s currency and general failure in the financial institutions. Recession may vary in terms of magnitude and in terms of how long it may persist (Gaston, 1994). Most economists’ belief on this subject is that recession differs from depression only by the degree of their severity. The implication is that depression is more severe form of recession-though with similar consequences. Usually, recession happens after ...

Blue collar jobs can seem like a lucrative and respectable choice for a career. They have several advantages such as the relative speed of vocational training compared to 4 year college, possibly better Return on Investment in terms of costs, and with potentially high enough skill barriers to afford a degree of protection and stability. However, in reality this is not the case, or is increasingly not the case as technology and the economy move us onto a different trajectory. In the near future, one of the key challenges is likely to be the replacement of large parts of ...

Impact of Low Expenditure on Welfare Programs

Abstract The level of expenditure in a particular economy directly affects the provision of welfare programs in that particular country. This paper particularly investigates the impact of a low expenditure on welfare programs in the United States of America. The paper explains in detail both the negative and positive implications of low expenditure in the United States. Specifically, the paper looks into how low expenditure reduces the morale to work and the negative implication of this on income levels. Moreover, the paper shows how low expenditure makes the redistribution role of the government to collapse thereby leading to income ...

The institutional affiliation

Tourism Economic Impact Measures and Satellite Account Data Analysis and Application Tourism has a huge potential as a tool for economic development. The basic components of economic impacts of the tourism industry are visitors, their expenditures and the multiplier effect. Economics of the country, region or city tries to reach an optimum return from the use of its resources. The ability of the tourist destination to retain the income depends on self-sufficiency of the local economy, its ability to produce services attractive for visitors. Money spent by tourists will be also introduced through other sectors of the economy causing ...

In 1960's the government biggest proportion of its spending went to investment. In 1962, the amount of government expenditure on investments was around two and half times that of transfer payments. Currently, the boat has capsized, and the spending on transfer payments has grown to over three times the spending on investment. . This indicates a drift of government goals. Precisely, transfer payment was mere 15% of the federal budget in 1960’s but currently it is over fifty percent. Transfer payments refer to the money paid by the government to households for no work done. The payments are done ...

Analysis of LaSalle Hotel Properties

Introduction: Importance of ratio analysis Financial ratios are important in analysing the financial performance of an organization. The financial performance is a key factor in the management of the organization. Financial ratios simplify the financial statements such as the income statement hence managers can easily determine whether the organization is profitable or not. For instance, profitability ratios such as the net profit margin indicate whether the organization is profitable or not. Managers can then identify areas of weaknesses and take corrective actions to improve the profitability of the organization. They are also used to assess the liquidity of an ...

Growth Rate of GDP

The growth rate of GDP is measured in terms of the original level of the GDP. Let us calculate the GDP for the following figures:

GDP in 2013: $13.1 trillion

GDP in 2014: $13.3 trillion Growth in GDP: $0.2trillion Growth rate of GDP =( 0.2/13.1)*100 =1.53% If the growth rate remains the same, let us calculate the number of years that will be required for the GDP to double itself. 13.3(1+ 1.53/100)^t = 2*13.3 Or, (1+1.53/100)^t = 2 Or, (1.0153)^t = 2

Taking log of both sides:

tlog1.0153 = log2 Or, t= log2/log1.0153 Or, t =45.6 Thus it will take almost 46 years to double the GDP ...

Xenia Hotels & Resorts, Inc.: Financial Ratio Analysis

Introduction Financial ratios divulge valuable information to the management of a firm that guides them in making significant operational and strategic decisions for their organizations. Financial ratio analysis is a significant technique that is used to analyze financial statements. Accounting ratios are a source of valuable information that helps the management of a firm to understand the financial state of their companies and be able to formulate strategies that will help them achieve the desired financial goals. Activity ratios, for instance, are used to judge the efficiency of the firm in using various assets that it has to generate ...

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 ...

James Dyson started his career as an inventor right after his studies in the Royal College of Art in London. His first design was a boat, which he called the Seatruck due to its ability to travel at high speed while carrying heavy cargo. His next invention, the ballbarrow, was a kind of a wheelbarrow, which could be used on the sea or on sand. However, the real success came to Dyson with the invention of the Dyson vacuum cleaner. The novelty of the vacuum cleaner was in its ability to use cyclonic separation for achieving continuous suction. Moreover, Dyson vacuum cleaner ...