Identify the right fiscal policy that should be followed

Assignment Help Macroeconomics
Reference no: EM13754314 , Length:

Part -1:

Article: IMF sees UAE GDP growth slowing to 2.3 pct in 2012

1. Summarize the articles with your own words.

2. Which stage in the business cycle do you think the economy is in?

3. Give two reasons to defend your chosen business cycle.

4. Identify the right fiscal policy that should be followed: contractionary or expansionary.

5. Explain why this fiscal policy should be used.

6. Explain how this fiscal policy would impact the economy.

7. Analyze how the information provided in the article will impact the macroeconomic indicators. You should use two indicators: output and unemployment in your analysis.

8. Follow the below instructions within your writing the project.

link: http://www.reuters.com/article/2012/03/14/imf-emirates-economy-idUSL5E8EE6CY20120314

Part -2:

IMF sees UAE GDP growth slowing to 2.3% in 2012 ABU DHABI,

The United Arab Emirates economic growth is expected to slow to 2.3 percent this year from an estimated 4.9 percent in 2011, as the Gulf country gradually consolidates fiscal policy, the International Monetary Fund said on Wednesday.

"The economic recovery looks set to continue. With limited potential for further increases in oil production in the near term, overall CDP growth is expected to moderate to 2.3 percent," the Fund said in a statement after concluding its annual consultations with the UAE.

The Fund's 2011 gross domestic product growth estimate is much stronger than 3.9 percent forecast by analysts polled by Reuters in December. The UAE's statistics bureau has yet to release 2011 GDP data.
Robust oil prices and strong trade flows with Asia have helped the second largest Arab economy recover from the 2009-2010 Dubai debt crisis, which exposed excesses in its property sector and led to a $25 billion debt restructuring at state-owned Dubai World.

The IMF warned, however, that the uncertain global economic and financial environment posed risks to the outlook, and any renewed worsening of the global situation could make it more difficult for the UAE's government-linked companies to roll over some of their maturing external debt.

It said substantial progress had been made in the debt restructuring of state-linked entities, but that they still faced high refinancing needs and continued reliance on foreign funding.

UAE authorities' plans to gradually consolidate fiscal policy, after heavy spending during the debt crisis, are appropriate, the IMF also said.

Verified Expert

Reference no: EM13754314

Role of incentives and people response

Illustrate the notion that people are rational respond to incentives consider an experiment conducted by researchers at St. Luke's Roosevelt Hospital in New York City.

How each barrier can foster either monopoly or oligopoly

Analyze the major barriers for entry and exit into the airline industry. Explain how each barrier can foster either monopoly or oligopoly. What barriers,

Opportunity cost of completing

If you were working full-time now, you could earn $20,000 per year. Instead, you are working part-time while going to school. In your current part-time job, you earn $5,000

What are some of the gains from economic integration

Despite the tremendous economic strides made during our current era of globalization, our world is split largely between those who have benefited greatly from globalization

Assuming a linear relationship and obtain the ols estimators

The table below shows the average growth rates of GDP and employment for 25 OECD countries for the period 1988-97. (a) Assuming a linear relationship, obtain the OLS estimator

Performance of yemens macroeconomy

What are the key elements in the natural resource endowment and in the social-political-economic C) institutions which explain the macroeconomic position of Yemen and of th

Evaluate ways that an organization can measure compliance

Evaluate ways that an organization can measure and reward compliance. Determine if organizations that measure and reward compliance are more or less likely to experience law

Tokyo stock exchange

Now suppose that the Tokyo Stock Exchange (as measured by the Nikkei 225 index) experiences a 22% increase in value in the next three months. Explain the impact of this even

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd