GDP Essay Example | Topics and Well Written Essays - 2000 words

GDP - Essay Example increases real GDP demanded, and an increase in net taxes decreases real GDP demanded, other things remain constant. 4) Give short definitions of both the IS and LM curves and briefly explain how this model can help economists understand the interaction between the goods and money markets. Show how the IS and LM curves can be derived and explain how equilibrium is reached. The IS curve describes the combination of interest rates and output that clear the goods and services market in the short run. The goods and services market is said to clear when spending by consumers, firms, the government (and foreigners if an open economy) on goods and services equals the production of goods and services. The basic equation for the IS curve in a closed economy is closely related to the national income accounting identity Y = C+I+G, where Y is GDP The LM curve summarizes all the combinations of income and interest rates that equate money demand and money supply. The LM curve in conjunction with the IS curve will help pin down the interest rate in the economy. It is well known that establishing the elasticity of the IS and LM curves provides basic information about the predicted outcome of fiscal and monetary policies in a given model, with a combination of inelastic LM and elastic IS implying fiscal crowding out and potent monetary policy, whereas elastic LM and inelastic IS lead to potent fiscal and weak monetary effects. Estimation of these locuses 5) Distinguish between monetary base and broad money. Explain what role commercial banks have in the creation of broad money. What implications does this have for monetary control The monetary base consists of the liabilities of central bank of a country which...Show how the IS and LM curves can be derived and explain how equilibrium is reached. 6) Distinguish between different kinds of unemployment. What kind of unemployment can be reduced by supply side policies and what specifically could those policies be Use a diagram to explain these policies 1) Using the Keynesian model of injections and withdrawals in the goods market, explain what happens if people decides to save more at any level of income. Make sure you express the process of adjustment and assess what implications the results may have for policy.

Gucci examine how brand theories or models apply in practice to the Essay

Gucci examine how brand theories or models apply in practice to the organisation assess how they use differentiated or undifferentiated marketing strategies f - Essay Example The main marketing strategy of Gucci is "designed to maintain a high profile and consistent visibility". This involves constant marketing of its products and image, which keeps the company constantly discernible to customers and the fashion world. To achieve this, Gucci has started increasing communications expenditure in the last 3 years, and is planning on continuing the increase of its marketing budget. Gucci's products and marketing methods are not tailored according to national needs or customs. It aims at reaching the growing global market segment of the rich and "newly rich", among which groups a homogenization of taste for luxury products has been detected. This group is a true example of the emergent phenomena of the global marketplace, where needs and perceived benefits are common from the USA to Europe to Japan. This global market segment's price elasticity is low, meaning that they are not affected by changes in prices. They see price as an irrelevant factor, and shop for luxurious, high quality brand names. I once read a report that quoted the CEO of a luxury goods company, as he stated that it is simpler to increase prices of luxury goods than to lower them, as this is what consumers expect. Since Gucci has several rival firms on a glo... Since Gucci has several rival firms on a global scale, it coordinates its marketing activities with careful timing and placement to achieve maximal penetration of its core message: the luxurious and fashionable image of all Gucci products. Gucci advertises in national and international fashion, lifestyle and business magazines. Advertisements are timed to appear at the start of buying seasons, where customers will be looking for fashion items to purchase for the coming season. This is effective use of advertising, since the ads appear at times of the year when customers are open to receive such messages. Direct Marketing Gucci publishes product catalogues and makes them available to existing and potential customers. These catalogues should be sent out via mail to the companies customers, and be reachable by potential customers at e.g. prestigious hair saloons, etc. Direct mail should also be sent to the wealthier people in each of the countries where Gucci pursues business activities, thereby making it convenient for the potential customers to familiarize themselves with Gucci products and even order through the order sheets provided in the catalogues. Gucci has set up PR offices in the fashion capitals of the world. Their job it to make local and international fashion press deal with Gucci as much as possible. (Silverstein, 2005, 155-63) Holding four seasonal fashion shows yearly, where the newest Gucci models are unveiled, also backs this. These shows are also good opportunities to appear in fashion press and other magazines. Image Tom Ford, the creative director of Gucci has been molding the company's image at his will. Gucci sells an attitude, as does all fashion today. Fashion is all about beauty, desire and sex and this is why Gucci's image is so