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MAE203 The Global Economy

tag 0 Download6 Pages / 1,414 Words
  • Course Code: MAE203
  • University: Deakin Business School

    MyAssignmentHelp.com is not sponsored or endorsed by this college or university

  • Country: Australia

Question:

What evidence does the data provide of the countries experiencing economic downturn during the crisis periods, and of the recovery process in the following years On the basis of the data collected, what similarities and differences are there in the performance of the economies Analyse critically and discuss.

Suppose you are a highly regarded international economic advisor. You have been asked to assess the possibilities of growth in an African country. It is a country abundant in labour and some natural resources. The capital to labour ratio is low. It has a free market economy. You have found that this country does not have a very strong and healthy banking system, however the political system is stable and the government does a good job protecting property rights. Assess this country's prospects for growth. Recommend two things that would enhance the 
country's growth. 

Stock market crashes are often followed by economic downturns. Using a 450 line diagram, explain how a stock market crash has the potential to lead to a recession in an economy, explain how an increase in the marginal propensity to save may affect the output level in the short-run. Is higher saving rate good or bad for an economy’s long-run growth Explain. 
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