Macroeconomics Master Research Paper Example | Topics and Well Written Essays - 2750 words

Macroeconomics Master - Research Paper Example From the diagram the output level following a shift in AS curve will decline from Y1 to Y2, price levels will increase from P1 to P2. Therefore the statement is false. Monopolistic competition form of market has a number of characteristics that make it different from other forms of markets, in this market there are many buyers and sellers and the sellers have a degree of controlling prices, consumers have the perception that there are no price differences and that there are only a few barriers to entry and exit. Rational expectations refers to the situation whereby individuals in an economy have all the available information including the past history of an economy, therefore the expected inflation level when people have rational expectation is much higher. In ur case we expect money supply to increase, when there is an increase in money supply we also expect that inflation will rise, for this reason given that we have rational expectations individuals have all the information and we expect inflation to be much higher. For this reason therefore this will affect the level of output by the firms. The output will be affected due to the changes that consumers expect in the market when the level of money supply changes and also the firms will adjust their production level due to the cost incurred due to changes in the level of money supply. The ... form of market has a number of characteristics that make it different from other forms of markets, in this market there are many buyers and sellers and the sellers have a degree of controlling prices, consumers have the perception that there are no price differences and that there are only a few barriers to entry and exit. When we have monopolistic competitive firms in an economy that face menu costs, menu cost refers to the costs that a firm faces when prices changes in the economy. Rational expectations refers to the situation whereby individuals in an economy have all the available information including the past history of an economy, therefore the expected inflation level when people have rational expectation is much higher. In ur case we expect money supply to increase, when there is an increase in money supply we also expect that inflation will rise, for this reason given that we have rational expectations individuals have all the information and we expect inflation to be much higher. For this reason therefore this will affect the level of output by the firms. The output will be affected due to the changes that consumers expect in the market when the level of money supply changes and also the firms will adjust their production level due to the cost incurred due to changes in the level of money supply. c. TRUE The rational expectation Phillips curve implies that the individuals in the economy have al the information regarding all those factors that affect inflation levels in the economy, in this form of expectations the cost of a lower rate of unemployment is a higher rate of inflation, under rational expectations the trade off between unemployment and inflation is much worse than fixed and adaptive expectations. For example if we start with an expected inflation

Project Management has become so Financially Sensitive that all Essay

Project Management has become so Financially Sensitive that all Project Managers should be Qualified Accountants - Essay Example This essay examines the point that "Whether or not a project manager has to be a qualified accountant" A project is a team work and every single individual has to play his own part in it to utmost faith. Finance is very important for the success or failure of a project. In fact finance is the life blood of every project. So it becomes imperative that the project manager must have knowledge of the financial aspects of the project. He will be able to direct in a better way the accountants if the project manager is a qualified accountant. If a project manager has to function effectively then he/she has to understand every aspect of cost and also the timing with regard to recognition of cost. Cost affects both the project and also the financial performance of the corporate. The project manager's duty is to be aware of the various cost perceptions and way in which they have to be reported. This knowledge will help the project manager to control the cost of goods sold which is his/her sole financial responsibility. The project manager can also control the timing of cost so that cash flow and the total cost of the project improves. Apart from this he can also affect revenue expenses and its report in the Profit and Loss statement (Project Management Journal, June 1986, p372). The different organizational goals which require continuous improvement in the quality of services and goods supplied to a customer through close customer relationships has contributed to this changing environment. Project managers should therefore understand and be aware of the various financial aspects of a project (Lundsten, David J 2006). The field of Project Managers is developing rapidly. This field now has its own professional body, the Project Management Institute (PMI), and its own professional certification, Project Management Professional (PMP). A project manager's task is to hand over the project on time and also within the prescribed budget. Most project managers feel they are responsible towards the firm's profitability only to the extent and limitation of controlling the project cost. But this is not so, they are capable of doing even beyond that. As soon as the various costs of a project is recognized the project manager's responsibility and effectiveness is increased. Planning the expenses and the cost of the project and execution of the same by the project manager influences a company's profit. He has to take timely action of the range of cash flow, expenses, and reporting of revenue and expenses. Thus the project manager has to be well versed and have a total knowledge in the cost accounting practices which shape the firm's project cost reporting (Project Management Journal, June 1986, p375). Scrutiny of the distinctive project profit & loss statement (Table 1) depicts how a project when sold for profit is subjugated to costs apart from the projects' cost (cost of 4 goods sold). The project manager