Assignment on the Principles of Macroeconomics

Question 1

In the Omani economy the injection includes the investment exports as well as the government purchase thus the leakages includes the imports, taxes as well as savings. Therefore the savings leaks out the borrowers which goes by the banking system as well as the borrowers also used the money to buy the services as well as goods that is injects the money back into a circular flow.  Hence government taxes also leaks out the model of the circular flow and the government spending injects back into the Omani economy. Although the imports leaks the Omani economy due to the money in the country which is used to buy the imports from the other country (Sites.google.com, 2020).

Question 2

The Microeconomic and macroeconomic effect each because the microeconomic is the study of individuals as well as the business decisions of the macroeconomic looks for the higher up country as well as the government decisions. The Microeconomic as well as macroeconomic along with their wide array of the underlying concepts which has been the subject of the great deals of writing. The Microeconomics focused on the supply demand and finds the price level and the macroeconomic which takes a top-down method as well as looks the economy as the whole which are trying to determine the nature and course.

Question 3

The Oman unemployment rate dropped to 2.67% in 2019 December where it’s reported 2.86% in 2018 December. The rate of unemployment of Oman is yearly updated from December 1991 to the 2019 December by the average rate of 5.07%.  According to a World Bank collection of development indicators Labor force, in Oman was reported at 2787190 in 2019. The employment rate in Oman is 70.4% in 2019 as shown in the below graphs

Question 4

The oil sector contributed the OMR 5.1 billion to the GDP and thus the non-oil sectors contributed the remaining OMR 9.56 billion to the GDP. This type of the contribution from the oil sectors to the GDP billion of rails which is more than in 2017 and the sector is also provided only OMR 0047 billion by the non-oil sector which is providing the another OMR 9.59 billion to take the GDP to the OMR of 13,,37 billion for the six month in 2017. The non-oil sector would also continue to gain the traction on a back to enhancing the climate of business which is underpinned through the effective decision of policy (Times News Service, 2019)

Question 5

The demand for the services and the goods in the economy is known as the Aggregate demand.

There are different component of the aggregate demands;

·         Consume savings

·         Business spending

·         Government spending

·         Export minus imports  

The fiscal policy is a monetary policy that is also includes the foreign exchanges which is formed the significant part of the government budget. It is also presents the foreign exchanges where the polices of a country which form the integral part of the government budget. The aggregate demands as well as aggregate supply curve to shift the economic growth which is also increase the productive of resources.  

Question 6

In the circular flow model to determine the national income of the country there are three alternative methods;

·         Expenditure method

·         Income Method

·         Product method

The circular flow model is the economic model which is also presents the flow of money by the economy. The most common form of the model which is also presents the circular flow of the income among the sector of household as well as the business sectors. The purchase goods of household as well as the services that is business provide by the market product (MasterClass, 2019).

Question 7

The  inflation is measured through consumer prices of index which is also reflects annual percentage by change in cost of average consumer and acquiring basket of services and goods which might be fixed or changed for specific intervals in a year. Oman inflation rate for 2018 was 0.88%, a 0.72% decline from 2017.

Source: https://www.macrotrends.net/countries/OMN/oman/inflation-rate-cpi

The inflation rate relates with the component of the aggregate demand, when the inflation rate is increase the real spending is also decrease like the value of the money decrease and the change in the inflation if also shifts the aggregate demand to left.

Question 8

By the new development in the tourism sector the Oman is pressing ahead which is also drive the diversify of the economy. The tourism industry of Oman which is grown steadily over the past five years by inbound tourism and the averaging increase of the 9% per year since in the 2010 regarding to WTTC. Then in the last year the Oman also received the record of 2.6m tourist if the government. The contribution of GDP across the economic sector of the Oman of 2018 is the agriculture of 2.21% to the GDP of Oman which is about the 46.75% and it is also came from the industry which is about the 47.04% and the services sector. The GDP of Oman in 2018 is 79.28 billion (numbers, 2016).

Question 9

The value which is added in the bakery industry is 16250 because bakers bus the different item from the different departments. And the method to calculate the GDP is;

National out = national expenditure (aggregate demand) = Nation income

Expenditure method – Aggregate demand

Question 10

Yes the country balance payment is the surplus or deficit because the current surplus is the economy exporting which has the greater value of services and goods as compare to the importing. The changes in the changes in official exchange reserves are a deposit of the foreign current which is also held by the central bank of country. Yes the central bank buying or selling foreign currency and then the forex intervention is occurred and the central bank purchaser sell the country own currency .