Macroeconomics
Essay 1
Economic growth is an increase in economic good and service production. This is compared from one to time to the other. The rate of economic growth is often the key determinant of changes in the countries living standards and is measured using the GDP per capita. It is an increase in aggregate production in an economy. A change in the value of the number of goods or services produced in a given time compared to another time is used in determining the rate of economic growth (Van den Berg, 2016).
The economist does agree that there exist for significant economy factors growths and development. These factors included human resources, capital, and natural resources and technology. Natural resources such as land and raw materials often lead to an outward shift in the PPF and hence increase the potential for economic growth. Equally, human resource quality influences the nature of economic growth. While economic growth depends on the physicals capital, higher real money does represent a considerably faster economic growth. The technological factor is a critical drive in the economic growth. Technology influence the rate of production and communication, which directly have an impact on economic growth (Panayotou, 2016).
In economic, technological change refers to an increase in the level of efficiency of products or process that often increase the output, without an increase in the amount of input. Key processes and products lie the element of communication do move this change in technology in two major stages which include invention and innovation. The invention is the creation of a whole new product which is more efficient compared to the previously existing one. This facilitates the production output without an increase in the input. The process of innovation refers to the enhancement of an invention performance capacity to increase its production.
Essay 2
Policy Mix refers to a combination of the fiscal as well as the monetary policy a nation’s policymakers often use in managing the country’s economy. This has two major parts, the fiscal policy which is made up of the taxes and the government spending and the monetary policy, which is made up of the financial supply and the country’s interest rates. In most nations, the legislators have the mandate of controlling the states fiscal policy while the central banks do the monetary policy control. Therefore, it can be said that the policy mix is a mix of the legislative action and that of the central banks.
Essay 3
The novel coronavirus has the most significant impacts on the American economy. With the deaths standing at close to 100, 000 individuals in the USA alone. The effects of the covid-19 on the countries economy are way too high. For months now, since the first case was reported in the USA, unemployment rates have so higher. The wages have risen even at the bottom of the labours market. The American consumer confidence is soon hit post-recession highs, and the county’s GDP is way low compared to that of the great depression of 2008 (Fernandes, 2020). The global pandemic has had a far-reaching economic impact on the entire sectors of the Americans economy, and mainly its economic consequences harm the country’s political scenario. Which the country was preparing to go to the polls in 2021, the Trumps administration is facing one of the global economic recession, which is considered worse than the 2018 economic downturn.
The economic impact of the corona Virus has a significant effect on the critical sectors of the economy such as manufacturing, agriculture and banking sectors, among others. Most are ever surging rate of the unemployment in the country as a result of the Virus, and the country is facing one of the worse declines in the GDP growth rate and an ever-increasing rate of inflation which has key negative impacts on the country’s ability to sustain its people. The worsening American economy due to these two factors of inflexion and decreased GDP are having negatively adverse implications on the country’s political scenario. The people are not as a result of the weak economy looking at the country’s political situation as a matter of national concern. Instead, they are critical in the recovery of the economic situation In the US (Fernandes, 2020).
With the uncertainties that surround every sector of the economy, the country’s political scene remains in a great midpoint. The economic consequence of the corvid-19 continues to reduce the levels of confidence in the sitting government and this has proceeded to the future government likely to be formed as a result of the coming election in 2021 (Dzuvor et al, 2020). As a result of these impacts, American citizens are much more focused on economic recovery over the politics of the day. Due to this situation, most Americans are not willing to participate in the 2021 polls for fear of an ever-worsening situation. Compared to the 208 recession to the Obamas election, the Covid-19 situation is very dire as it presents a more uncertain situation for the country’s economic situation with its impact even more far-reaching.
References
Panayotou, T. (2016). Economic growth and the environment. The environment in anthropology, 140-148.
Van den Berg, H. (2016). Economic growth and development. World Scientific Publishing Company.
Fernandes, N. (2020). Economic effects of coronavirus outbreak (COVID-19) on the world economy. Available at SSRN 3557504.
Ayittey, F. K., Ayittey, M. K., Chiwero, N. B., Kamasah, J. S., & Dzuvor, C. (2020). Economic impacts of Wuhan 2019‐nCoV on China and the world. Journal of Medical Virology.