Fiscal and Monetary Policies: Key Concepts and Definitions
Keynesian vs. Classical Economics
Keynesians reject the assumption that the economy is free to reach full employment of productive resources. They recommend state intervention through monetary and fiscal policies.
Classical economists rely on the free play of market forces and believe that government intervention should be reduced to a minimum.
Fiscal Policy
Fiscal policy refers to government decisions on the level of public spending and taxes.
Transfers are payments for which those who receive them
Read MoreUnderstanding Economic Activity and Macroeconomics
Introduction
In one area, there are the following facts:
- It generated large quantities of goods and services.
- The company has cash resources to spend.
- We need to know these resources are spent on.
Applied Economics – Measuring Economic Activity: It is all those operations to produce goods and services using labor and capital to do some intermediate inputs into a production process in order to obtain outputs.
Measuring Economic Activity
To measure economic activity, we need to define, for an understanding
Read MoreBusiness Finance and Operations: A Comprehensive Analysis
Working Capital and Financial Analysis
Working capital is a key aspect of a company’s economic structure. It forces us to consider whether the company has a safety fund to enable us to meet short-term obligations. It’s calculated as:
Current Assets – Current Liabilities = Working Capital
Financial analysis reflects the balance held by the company. For a positive financial situation, the result must be positive. There are four possibilities:
- Total equilibrium: Maximum financial stability. No debts.
- Financial
Human Resources Management: Key Functions and Best Practices
1.4 Communications in the Personal Area
The company sets up communication systems to capture information, both internally and externally, and channels it to achieve objectives.
The HR department performs internal communication and must establish who the senders and receivers are to channel and disseminate the information correctly.
- Kind of communication:
- Descending communication: Hierarchies are transmitted over subordinates, and objective standards are met and orders given. This communication reports
Business Structures and Organizational Dynamics
Trading Companies and Social Interest Societies
Trading companies are formed by several people who share a common heritage to collaborate in operating a business, aiming to obtain a profit and participate in the distribution of profits. Social interest societies seek to obtain benefits while also satisfying the common needs of their members. Cooperative societies are a popular example of this group.
Liability: Unlimited and Limited
Unlimited liability occurs when the employer, an individual in a society,
Read MoreEconomic Impact of World War I and the Great Depression
Economic Chaos of the Postwar Era
Governments tried to return to pre-war economic practices, but the international economic scene had changed substantially. Gold reserves were depleted. Due to military needs, many had been forced to resort to the production of banknotes or large releases of public debt. Monetary disorder reigned during the war and the postwar pattern. It was necessary to abandon the Gold Standard. The war had caused great destruction; spaces were fragmented, and economic infrastructure
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