MARKETING AND THE ECONOMY

Marketing and the Economy



Marketing and the Economy

Introduction

In this paper, I will discuss markets and the economy. I will review how the advantages of an increased federal budget will help stabilize an economy. I will also review wages and price in the short-run and long-run equilibrium. I will also discuss pollution permits and how they lead to less costly abatement. Lastly, the discussion will be GDP per capita and give other factors to help determine a more accurate calculation.

Discussion

The productive activity of a market economy, made up of primary and secondary sectors, is responsible for the production and processing of goods for final consumption and intermediate, but is becoming increasingly important in any economic system that look good complemented by the services sector, providing services such as transport and communication trade. Is responsible for promoting the productive sectors at the same time is driven by them. Trade can be defined as "providing the service distribution channel and sell all kinds of goods both at national and international level." Commercial activity in the economy cannot grow efficiently without a parallel growth or greater output of goods. The substance of the service sector in general is not the production of something physical, but of intangibles that enable the production system continues to operate. Another important role of the tertiary sector is the relationship and synthesis of demand and supply information to help price formation and maintenance of a market model with "perfect" information. We provide four answers of different questions, by proofing with the logical evidence that is provided.

Question No 1

In this question they have asked that how an increased federal budget deficit resulting from a recession can facilitate stabilize an economy. We have provide that if the government cut taxes or increased their transfer payments such as, unemployment insurance, welfare payments, and food stamps this will partly offset the fall in the household income. When other household's incomes are falling, pays less in taxes which partially offsets their decline in their household income. Also, when the government cuts corporate taxes; it helps to prevent businesses from cutting spending as much as they would during the recession. Therefore, an increased federal budget deficit can help stabilize an economy because when household's disposable income rises they will spend more on consumption. I think when consumption raises it raises the aggregate demand (Robert, 2004).

Question No 2:

We have identified in this question by proofing that the determents wages and prices take the economy to the long run equilibrium from the short run equilibrium. During the short-run prices and wages do not respond to changes in the economy. Prices are slow to adjust (sticky prices) when this happens it creates periods of shortage or surplus. When wages and prices are sticky it prevents the economy from operating at it natural level or employment and potential output. Before the short-run equilibrium connects to the long-run equilibrium the economy normally goes through an infliction; like now we are in a recession, so the supply curve ...