Contemporary Economic Policy and the Virtual Chancellor...

Contemporary Economic Policy Assignment: Virtual Chancellor Introduction The Virtual Chancellor Simulation is a web site designed to give to anyone the power to control for a moment the keys of the economic growth model of hisher country and try according to them, by changing the suitable parameters, to lead the economy to its own prosperity. However it is not an easy thing to be in that position, because you have to take under consideration a lot of variables and risks and you have to satisfy every level of the society, from the poor families and pensioners to the rich people and of course the goals set by the government. After running the model approximately three hundred times to see what changes each parameters have and what they†¦show more content†¦My findings mostly fit with the idea of the Keynesian model. This model develops a theory that would explain determinants of saving, consumption, investment and production. In that theory, the interaction of aggregate demand and aggregate supply determines the level of output and employment in the economy. Keynesian economics had as a priority to increase government spending and decrease taxes in order to stimulate aggregate demand. In case of a budget surplus the Keynesian Model had two main strategies 1) to slow the pace of strong economic growth 2) To stabilize prices when inflation is too high So according to fiscal policy: The Government can affect productivity levels * By increasing or decreasing tax levels * By increasing or decreasing public spending * Curbs inflation * Increases employment * Maintains healthy value of money References http://en.wikipedia.org/wiki/Keynesian_economics (AccessedShow MoreRelatedContemporary Economic Policy and the Virtual Chancellor Simulation1103 Words   |  5 PagesContemporary Economic Policy Assignment: Virtual Chancellor Introduction The Virtual Chancellor Simulation is a web site designed to give to anyone the power to control for a moment the keys of the economic growth model of his\her country and try according to them, by changing the suitable parameters, to lead the economy to its own prosperity. However it is not an easy thing to be in that position, because you have to take under consideration a lot of variables and risks and you have to satisfyRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagescolonies after 1870 as a predictable culmination of the long nineteenth century, which was ushered in by the industrial and political revolutions of the late 1700s. But at the same time, without serious attention to the processes and misguided policies that led to decades of agrarian and industrial depression from the late 1860s to the 1890s, as well as the social tensions and political rivalries that generated and were in turn fed by imperialist expansionism, one cannot begin to comprehend theRead MoreManagement Challenges for the 21st Century.Pdf60639 Words   |  243 Pagesrealities and their demands require a REVERSAL of policies that have worked well for the last century and, even more, a change in the MINDSET of organizations as well as of individuals. This is a MANAGEMENT BOOK. It intentionally leaves out BUSINESS CHALLENGES—even very important ones such as the question of whether the EURO will displace the U.S. dollar as the world’s key currency, or what will SUCCEED the 19th century’s most successful economic inventions, the commercial bank and the investmentRead MoreCase Study148348 Words   |  594 PagesExperience simulation gives you hands-on experience of strategic analysis and putting strategy into action Resources for instructors †¢ Instructor’s manual, including extensive teaching notes for cases and suggested teaching plans †¢ PowerPoint slides, containing key information and figures from the book †¢ Secure testbank containing over 600 questions †¢ Support for the Strategy Experience simulation with guidance on the aims and objectives of the simulation, and instructions on how to set up simulation groups Contemporary Economic Policy and the Virtual Chancellor... Contemporary Economic Policy Assignment: Virtual Chancellor Introduction The Virtual Chancellor Simulation is a web site designed to give to anyone the power to control for a moment the keys of the economic growth model of his\her country and try according to them, by changing the suitable parameters, to lead the economy to its own prosperity. However it is not an easy thing to be in that position, because you have to take under consideration a lot of variables and risks and you have to satisfy every level of the society, from the poor families and pensioners to the rich people and of course the goals set by the government. After running the model approximately three hundred times to see what changes each parameters have and what†¦show more content†¦I moved on to Indirect Taxes trying to understand how changes of the excite duties such as alcohol, tobacco and petrol are affecting the economy and the families. Soon I realize that increasing tobacco duty (from 205.0 per packet of 20 to 215.0 per packet of 20 ) and tobacco ad valorem duty ( for example by one percentage point ) has an enormous effect on inflation (increased by 0.28 ) and of course most of the people of the society now are losing and GNP goes down as well. In general the main variable that was affected positively was now the government dept that was falling by 0.11 % but in contrast with that unemployment was rising and there was a negative growth in GDP. Similar results appeared when I increase the petrol duty (from 48.0 pence per liter to 52.0 pence per liter ) It was obvious that government dept was falling faster now ( by 0.16% ) however the inflation was up 0.41 points and GNP was falling significantly by 0.85 bn â‚ ¬. On the other hand when I decreased tobacco duty ( from 205.0 per packet of 20 to 195.0 per packet of 20 ) and tobacco ad valorem duty ( for example by one percentage point ) it had positive effects on inflation dropped down by 0.28 points and on GNP ( increased by 0.57 bn ) but affected negatively the government dept by increasing it 0.11%. TheShow MoreRelatedContemporary Economic Policy and the Virtual Chancellor Simulation1088 Words   |  5 PagesContemporary Economic Policy Assignment: Virtual Chancellor Introduction The Virtual Chancellor Simulation is a web site designed to give to anyone the power to control for a moment the keys of the economic growth model of hisher country and try according to them, by changing the suitable parameters, to lead the economy to its own prosperity. However it is not an easy thing to be in that position, because you have to take under consideration a lot of variables and risks and you have to satisfy everyRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagescolonies after 1870 as a predictable culmination of the long nineteenth century, which was ushered in by the industrial and political revolutions of the late 1700s. But at the same time, without serious attention to the processes and misguided policies that led to decades of agrarian and industrial depression from the late 1860s to the 1890s, as well as the social tensions and political rivalries that generated and were in turn fed by imperialist expansionism, one cannot begin to comprehend theRead MoreManagement Challenges for the 21st Century.Pdf60639 Words   |  243 Pagesrealities and their demands require a REVERSAL of policies that have worked well for the last century and, even more, a change in the MINDSET of organizations as well as of individuals. This is a MANAGEMENT BOOK. It intentionally leaves out BUSINESS CHALLENGES—even very important ones such as the question of whether the EURO will displace the U.S. dollar as the world’s key currency, or what will SUCCEED the 19th century’s most successful economic inventions, the commercial bank and the investmentRead MoreCase Study148348 Words   |  594 PagesExperience simulation gives you hands-on experience of strategic analysis and putting strategy into action Resources for instructors †¢ Instructor’s manual, including extensive teaching notes for cases and suggested teaching plans †¢ PowerPoint slides, containing key information and figures from the book †¢ Secure testbank containing over 600 questions †¢ Support for the Strategy Experience simulation with guidance on the aims and objectives of the simulation, and instructions on how to set up simulation groups