MACROECONOMIC Essay Example | Topics and Well Written Essays - 750 words

MACROECONOMIC - Essay Example 2). The objectives of economic growth, stability in prices and the desired level of employment can be attained through fiscal policies. Instruments of fiscal policy and the effectiveness of the different measures in stimulating aggregate demand There are three main instruments of fiscal policy as discussed below. They are public debts, taxation and public spending. The instruments can be sued by the concerned authorities to achieve the desired level of production, national income as well as consumption. The term aggregate demand refers to the total expenditure made by the households, government and businesses on the goods and services that are produced domestically. It describes the behaviour of the buyers in response to changes in the policy implementations. If the level on inflation rises, the purchasing power of the consumers fall and therefore the aggregate demand curve is downward sloping (Auerbach, 2005, p. 3). This is described in the diagram below. Increase in government spen ding: The increase in the expenditure from the part of the government is likely to shift the aggregate demand curve to the right. The diagram below will provide the realistic picture. The increase in government spending means more money or disposable income on the hands of the consumers. The level of employment will take the upward rising curve and therefore it is natural that the aggregate demand curve will budge to the right as the overall level of demand within the economy will rise. Increase in tax cuts: The increase in tax cuts is expected to have the same effect as the cut will stimulate investment spending and the level of demand exiting in the economy will rise. Therefore the aggregate demand curve will budge to the right in this case as well. Fiscal policy stance 2012 (Australia) The fiscal deficit of Australia reached at the level of 44.7 billion dollars during the year 2012. The fiscal stance that the government adopted during the federal budget during that year was mostl y emphasized upon reducing the government expenditure. There were announcements of several new taxes namely minerals resource rent tax and the carbon price. There were some additional to fund reconstruction after natural disasters. The following diagram will show the government spending for the 2012 for Australia. The following table shows the personal tax rates for the country in 2012. Appropriateness of the fiscal policy stance Variation in outcomes can be witnessed among the different industries. The high commodity prices boosted the national income while the terms of trade reached at the record level in that year. On the other hand the conditions remained subdued in the fields of investments as well as in the arena of household spending (WACE Revision Centre, 2013, p. 12). The rate of unemployment has remained at the level of 5.25% although there was slight improvement in the unemployment conditions in the middle periods of 2011. The expenditures made by the consumers have remai ned at the moderate level with no surprising trends. The ratio of net wealth to disposable income has fallen in the recent years. The business investment rose sharply till the second half which drove in capital imports into the country and the impact of the capital imports had significant effects on the current account balance of the country. The demand stimulus of the country contracted

Compensation Plan Outline Assignment Example | Topics and Well Written Essays - 1500 words - 2

Compensation Plan Outline - Assignment Example Thus, in return, the company developed a strategic compensation and remuneration plan, in which the company seeks to compensate its workers accordingly for the services delivered (Aguinis, 2009). Safaricom entails a strategic compensation approach towards its employees, translating into high motivation and employee retention rates. The current compensation plan entails a pragmatic approach in which the company focuses on the features of the qualification of employees accordingly in facilitating their salaries and related benefits. The company focuses on the areas of the skills of the employees and their individual contribution to the accomplishments of the company in rewarding the efforts thereof of the employees. In practical definition, the company rewards and allocates the compensation based on the current market situation and the service the workers deliver to the company operations (Aguinis, 2009). Further, the company also entails remarkably incredible platform of offering incentives to its workers, to foster the employee motivation accordingly. The company has incentives such as promotional offers to the employees for goods and services from the company as rewards for the services they deliver to the company. Further, the company also offers credible salaries to the employees, as exemplified by the recent reports in which the company released its statistics, regarding their employee remuneration expenditure, as the report indicates. The company spend about Kenyan shillings 8.4 billion on salaries and benefits to its employees, in the year that finished in March 2013 (The Vodacom Group, 2014). Of this budget, more than 5.1 billion shillings went to wages and salaries while about 95 million shillings went to the allocation for employee grants option plan. The directors of the company got about 387.7 million in remuneration, which is higher than the previous allocation, while the rest was for the other staff. Similarly, the company,