Running The British Economy

Running The British Economy

Introduction

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A study of economics in terms of whole systems especially with

reference to general levels of output and income and to the

interrelations among sectors of the economy is called macroeconomics.

Macroeconomics is concerned with the behavior of the economy as a

whole—with booms and recessions, the economy’s total output of goods

and services and the growth of output, the rates of inflation and

unemployment, the balance of payments, and exchange rates.

Macroeconomics deals with the increase in output and employment over

long period of time—that is economic growth—and with the short-run

fluctuations that constitutes the business cycle. Macroeconomics

focuses on the economic behavior and policies that effect consumption

and investment, trade balance, the determinants of changes in wages

and prices, monetary and fiscal policies, the money stock, the federal

budget, interest rates, and national debt. In brief, macroeconomics

deals with the major economic issues and problems of the day.

In this software of running the British economy we will observe

different outcomes in the British Economy by changing these four

variables. They are

1. Government Expenditure

2. Tax Rate

3. Value Added Tax (VAT)

4. Monetary Cash Flow

Through this assignment I have given a chance to run the British

Economy for five years. In order to understand this assignment we

first have to understand what these above four variables are?

Explanation

Government Expenditure

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It covers what so ever government spends in purchasing goods and

services in order to perform their factions properly. This includes

spending on such items such as defense e...

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...es, which are 6.79. And by this all economy get a boast. People

started getting better off and government got success keeping the

interest of investor in economy. Balance to payment went down to 5,

which is not bad.

Bibliography

Books

1. Diulio, Eugene A. Theory and Problems of Macroeconomic Theory.

London. McGraw-Hill Publishing Company. 1974.

2. Fischer, Stanley. Dornubusch, Rudiger. Macroeconomics. USA.

McGraw-Hill Publishing Company. 1990.

3. Glahe, Fred R. Macroeconomics Theory and Practice. USA. Harcourt

Brace Jovanovich Inc. 1992.

Websites

1. http://star2.vub.ac.be/~dvermeir/mirrors/ingrimayne.saintjoe.edu/econ/ISLM/ISLM.html

Accesses on: 15/12/2004

2. http://users.ox.ac.uk/~scro0519/macro.pdf

Accessed on: 15/12/2004

3. http://www.wabash.edu/dept/economics/Faculty%20Work/ISLM.pdf

Accessed on: 16/12/2004