Macro3B Essay Example | Topics and Well Written Essays - 1000 words

Macro3B - Essay Example The expenditure multiplier is a constant that gives the value (a ratio) to what you will put in the economy and what you will get out of it as a result. It is an increased (multiplied) value because once money comes into the economy; it changes many hands and gradually multiplies. We first need to know the value of the multiplier before determining the amount by which we ought to increase government spending. Multiplier = 1 / MPS We know what the MPC is because MPC + MPS = 1 We can find out the value of MPS that is: 0.8 + MPS = 1 MPS = 1 – 0-.8 MPS = 0.2 Since MPS = 0.2, Multiplier = 1 / MPS Multiplier = 1 / 0.2 Multiplier = 5 At present, the economy lacks behind full employment by $2000 as the full employment level is $10,000 and we are currently at $8,000 (10,000 – 80000), to fulfill this gap, we will not increase government spending by 2000 as that would increase the total output to a large extent owing to the presence of the Expenditure multiplier, therefore we woul d increase it by: 2000 / Multiplier 2000 / 5 = $400 A $400 increase in Government spending would automatically trigger an increase of $2000 in the economy owing to the presence of the multiplier (i.e. 400 * 5 = $2000) Question 2: The other aspect of Fiscal tool that the government has on its disposal is the â€Å"taxes† which it can alter depending on the state of the economy. Since the President has asked me to work on the fiscal measure owing to popular public demand, we can work with it as well. First of all, it is important to understand that taxes are not a direct component of the GDP unlike government expenditure; they influence consumption. Also, tax cuts are feared to be saved to an extent depending on the public’s expectations (example, if there is more employment in the economy, GDP is likely to rise greatly, however, decreases in tax rates might even be saved by the households), therefore, the value of the tax multiplier is less than that of the expenditure multiplier; which means I would have to reduce taxes to a greater extent as compared to government expenditure to get the $2000 increase in GDP. Tax Multiplier: MPC / MPC Since MPC = 0.8 and MPS = 0.2 Tax Multiplier = 0.8 / 0.2 Tax Multiplier = 4 (Which is one less than the expenditure multiplier that was â€Å"5†) For the economy to boost to full employment, tax cuts would have to be given in accordance with the multiplier: 2000 / Tax Multiplier 2000/4 = $500 Therefore, it is evident, for the economy to go to the full employment level of $10,000, tax cuts worth 500 have to be given (which are 100 more than the expenditure if the government were to use that). This makes the government spending policy more attractive as compared to giving tax incentives to people. Question 3: If the president were to match increases in federal government expenditures with the offsetting increases in taxation, it would never give out a balanced budget. It is important to note that because of a leakage i.e. saving, a tax cut never gives out its full multiplier effect; tax cuts affect consumption and are not a direct part of the GDP. On the other hand, government expenditure is direct component of GDP as shown: Taking closer looks at the formula of tax multiplier (i.e. MPC/MPS) and comparing it to the expenditure multiplier, one would realize that the tax multiplier would always be â€Å"1† less than the government expenditure multiplier; therefore equal increases or decreases in both would not give out a balanc

Movie and a media article comparison Essay Example | Topics and Well Written Essays - 1000 words

Movie and a media article comparison - Essay Example She is not educated and does not speak any language except Bengali l and lived a poor life. As the movie proceeds the Nazneen have lived 16 yrs with her husband in London city and is also shown to have two daughters. She is now a woman who speaks English, and is a housewife in London city. However, her mind and soul is still in her village, remembering her loving sister with whom she had spent her childhood in joy. Life has changed for Nazeen but her emotions are numb because she is married to a person, she does not love. As a young woman, her passions are still unquenched and are living a life of frustration. Her love life with her husband is bland and she has no emotional connection with him. While comparing to her young age, she is much silent, unhappy and nostalgic. She lives in her childhood, even after leaving the village at a young age. The only best time in her life is one which she has spent in the village and she is holding on to it to give her happiness and joy. As days pa ss by she gets acquainted with the clothing worker Karim. She buys a sewing machine and starts stitching clothes and tries to become engaged in some productive work. In due course, she romantically gets involved with Karim and this gives her a new life. Every day she waits for him and they spent some lovable movements at her home and ultimately physically get involved. After getting intimate with Karim, a new energy sparks in Nazneen and she perceives life in a different way. She discovers herself after coming in contact with the handsome and young Karim. Nazneen become more lively, energetic and even her family notices the positive change in her. As they love prosper, her husband comes to know about her liaison with Karim and sarcastically threaten her. At the same time , event of 9/11 strikes America and the Muslim community experiences a threatened environment in London. Upon this news, Nazneen’s husband decides to leave London and go back to Bangladesh. But towards the en d of the movie, Nazneen transforms to a strong- willed, bold woman who has ideas and principles of her own. She confesses to her husband she wants to liven in London and stays back there with her children as an independent woman. The article â€Å"Geographies of Inclusion/Exclusion: British Muslim Women in the East End of London† by Halima Begum throws light upon the life of Bangladeshi women and their gender identity in context to Islam community in East London. The article talks about the life of Bangladeshi women in London who come from rural areas of Bangladesh. These women get caught in the atmosphere of cosmopolitan cities and suffer identity crisis. In the article author writes that† The promise of inclusion for young, working-class Muslim Bangladeshi women remains an unfulfilled project in contemporary Britain†. This could be related to the scene in which Nazneen looks at the sewing machine and feel helpless in buying it. It shows the kind of atmosphere in which Bangladeshi women live where they have no right to get employed and contribute to the society. According to Begum â€Å"For many young British Bangladeshis, Islam in the United Kingdom is more about bringing the ‘modern’ back from Bangladesh into East London’s communities†. This could be associated with the scene where Karim persuades Nazneen to stay back in London as an attempt to make her modern and independent.Karim being a person born and brought up in London is also religious man. He