Importance of the Macroeconomics Objectives Towards the...

Diploma in Business Administration M. Jane Chong 3rd March , 2011 Contents | Title | Page | 1.0 | Introduction | 3 | 2.0 | Macroeconomic Objectives | 4 | 3.0 * 3.1 * 3.2 | Economic GrowthThe ImportanceExample | 556 | 4.0 * 4.1 * 4.2 | UnemploymentThe ImportanceExample | 778 | 5.0 * 5.1 * 5.2 | InflationThe ImportanceExample | 9910 | 6.0 | Conclusion | 11 | 7.0 | References | 12 | 8.0 | Appendix | 13 | 1.0 Introduction This assignment is to discuss the importance of the Macroeconomics Objectives towards the Malaysia economic performance. There are four main Macroeconomics Objectives, but in this assignment I will be explaining any three Macroeconomics Objectives, such as Unemployment, Inflation†¦show more content†¦At higher levels, inflation has a significantly negative effect on economic growth. Normally, Malaysian inflation rate is controlled by the government. Malaysia shows a unique feature in terms of inflationary experiences; the economy had experienced high and low regimes of inflation, and was able to contain a low and stable inflation during the high economic growth period of 1988–96. This achievement is related to low inflation during the high economic growth regime was attributed to the effective and consistent policy mix adopted by the Malaysian government. (Munir Q., Mansur K., Furuoka F., 2009, Vol.26) 4.2 Example Malaysia experienced a single-digit episode of inflation at only 2 per cent while the growth rate of GDP was approximately 7 per cent. The GDP growth rate remained the same during the second half of the 1970s while inflation rate gradually increased to 4 per cent. The sharp oil price increase in 1973 and 1974 was the principal reason for the escalation of world inflation in 1973–74. Consequently, consumer prices in Malaysia began to rise and inflation had reached a double-digit level of 10.56 per cent by the end of 1973. In 1974, the surge in oil price by over 230 per cent added strong fuel to inflation, and the inflation rate in Malaysia increased to its record high of 17.32 per cent. A year later, the Malaysian economy slumped into its greatShow MoreRelatedForeign Direct Investment ( Fdi )5393 Words   |  22 PagesCHAPTER 1 INTRODUCTION 1.1 RESEARCH BACKGROUND Research on FDI has been one of the most popular topics among the scholars in finance and economics field. In order to start the study, the definition of FDI should be clarified first. 1.1.1 Definition of Foreign Direct Investment (FDI) Foreign Direct Investment, popularly known by its acronym FDI, is a particular type of foreign capital, as opposed to domestic investment. 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