No name Coursework Example | Topics and Well Written Essays - 1250 words

No name - Coursework Example 2. (a) In a closed economy, IS curve is the interest rate at which the commodity market is at equilibrium at a given income level. This can be expressed algebraically as Y = C + I + G, where Y is the equilibrium income is the level of consumption, I is the level of investment and G is the government expenditure. It is worth to note that consumption is a function of income while investment is a function of interest rate and government expenditure is a function of tax. Using the equation given above, Y = C + I + G, but C = 100 + 0.4(Y – T) and when this is substituted into the IS equation we obtain Y = 100 + 0.4(Y – T) + I + G, since I = 1000 + 0.1Y – 20i which when replaced to the equation gives Y = 100 + 0.4(Y – T) + 1000 + 0.1Y – 20i + G,note that T= 300 finally the value of G = 100 which when replaced into the equation yield Y = 100 + 0.4(Y – 300) + 1000 + 0.1Y – 20i + 100. When this equation is simplified to give the IS curve we obt ain 0.5Y = 1080-20i and the IS curve will be represented by the equation below; Y = 2160 – 40i. ... IS-LM curve can be attained where there is equilibrium in the commodity market and money market. Using the IS and LM equations and combining them we obtain i= 50 and Y = 160.This means that equilibrium income Y=160 and equilibrium interest rate i=50. This can graphically be represented as: I M i 50 L S 160 Y (b) When the G increases by 100, the IS-LM curve equilibrium Y = 170 while the i=55 and this represents an upward shift in the IS curve as shown below: Io I1 i M 55 50 L S1 S0 160 170 Y (c) When the real money supply reduce by 200, the i=51 while Y=122 and this represents an upward shift in the LM curve as shown below. i I I M1 M0 51 50 L1 L0 S 122 160 Y (a)In an open economy, IS curve can be derived by equating Y= C+I+G+X-M, this can be represented as Y = 100+0.8(1-t)Y + 700-50i+900+700-0.2Y: In simple expression the IS curve will be Y=4000-83i. On the other hand the LM curve will be expressed algebraically as Money Demand equals Money Supply and using the data provided this wil l be 0.25Y – 62.5i = 500. Hence Y= 2000+ 250i (b) The equilibrium income and interest rate in this case will be calculated by equating IS to LM which will be 2000 + 250i =4000-83i and Y= 498 and i= 6. Hence the governments surplus budget will be (X)700- (IM)99 = 600. (c) The equilibrium income Y = 498 therefore, the government expenditure should be increased by 4602 (d)The change in balance of trade will be export less import which is 600 and this is also a government surplus. This employment is sustainable since there is an extra demand for labor to be absorbed in the export sector and this also means that the extra export creates more employment opportunity. (e) The full

Cause and Effect Essay Example | Topics and Well Written Essays - 750 words - 3

Cause and Effect - Essay Example The mass media which includes advertisements, television shows, and magazines plays a huge role in shaping the perception of the society on the perfect body size and shape. Recognizing the profit motive of business organizations, advertisements are often geared as one of the most important ways of developing brand image and elicit positive response from buyers. Women are not exempted from the effects of these advertisements and are ready prey of marketers trying to sell products to them. In an article entitled Body Image and Marketing, it is estimated that women an average woman is exposed to around 400 to 500 advertisements each day and that 69% of the girls surveyed agree that the magazines' standard of perfection affects their perception of beauty. Through the use of skinny models in advertising nice clothes, sexy lingerie, makeup, and jewelry, ordinary women come to the bitter realization that she should be thin in order to be perfectly beautiful like these models. Beauty is equa ted with thinness and any woman that is over size six is considered to be fat and ugly. Noting that the size of an ordinary American woman is far from these skinny girls in fashion magazines, the media adversely affects the individual's body image. Young women feel left out and depressed because they cannot live up to the standards of the society. This cultivates a culture of low self esteem, a feeling of being unattractive, and a strong desire to be model thin. The negative body perception brings about the obsession to be thin through strict dieting. The obsession to thinness motivates women to perfect their body through any possible way. The most common resort is through dieting and starvation which often leads to eating disorders. The Mayo Clinic defines eating disorder as "a broad group of serious conditions in which you are so preoccupied with food and weight that you can often focus on little ease." In addition to this, it is estimated that 90% of individuals with eating disorders are motivated by the obsession to be as skinny as magazine models. The prevalence of anorexia nervosa and bulimia nervosa in the American society has been overwhelming as women starve themselves in order to lose weight. However, these young women do not stop dieting at any weight because they consider people's remarks of their thinness as compliments. The grim reality is the fact that pursuing the thin ideal can be fatal. These eating disorders do not only r ob people of their time, energy, and focus but can lead to fatal illnesses. Technological advancements have ushered us to an era where our physique can be altered through the use of modern equipments. Women do not have to be "imperfect" and "ugly" but are given the chance to redefine their bodies through cosmetic surgery. This technological advancement can help women get rid of the unwanted body fat in no time. It is irrefutable that women who are discontented with their body size are very much willing to undergo cosmetic surgery in order to change their appearance. In the United States, it is reported that 57% of American population has had liposuction while 47% had tummy tuck. These cosmetic surgeries are seen to be motivated by the desire