Alf Money and the Prices in the Long Run and Open Economies

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ALF Money and the Prices in the Long Run and Open Economies
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Contents

1.0 Introduction 3

2.0 History of Economic Changes and comparing it to Forecast for the next Five Years 3

2.1 Changes in GDP 3

2.1.1 Economic Forecast 4

2.2 Changes in Savings 4

2.2.1 Economic Forecast 4

2.3 Changes in Investment 5

2.3.1 Economic Forecast 5

2.4 Changes in Unemployment Rates 6

2.4.1 Economic Forecast 6

2.5 Changes in Real Interest Rates 7

2.5.1 Economic Forecast 7

3.0 How Government Policies Can Influence Economic Growth 8

4.0 Influence of Monetary Policy 8

5.0 Influence of Trade Deficits or Surpluses 9

6.0 The market for loanable funds and the market for foreign-currency exchange 9

7.0 Recommendation based on the Achievement of the Strategic Plan 10

8.0 Conclusion 11

ALF Money and the Prices in the Long Run and Open Economies

1.0 Introduction

(Creasey, Rahman, & Smith, 2012), defines economic growth as the rise of the monetary value of the goods and services produced by a country or an economy over a given period. Economic growth is simply the percentage change (increase or decrease) in the real GDP (gross domestic product) (Ahmad, 2013). "The economy of the United States is among the top largest economies in the world though it is facing stiff competition from other economies such as China," (Orhangazi, 2008). An analysis of the US economy reveals that it requires an aggressive growth plan which requires investment in equipment and facilities, increase in labor and productivity over the half decade.

2.0 History of Economic Changes and comparing it to Forecast for the next Five Years

2.1 Changes in GDP GDP is the total market value of goods and services produced within an economy over a specified period (COLEMAN, 2008). The…...

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