Macroeconomics Essay Example | Topics and Well Written Essays - 1500 words - 2

Macroeconomics - Essay Example It is computed as the difference between exports and imports. GDP is flawed for the following reasons: "it does not include the value of non-market production and leisure; it contains intermediate and regrettable expenditures that do not contribute to economic welfare; government expenditure on health, education, social services and environmental protection does not necessarily reflect outcomes in these areas; it does not account for resources required for sustainable development; and it does not directly measure investment in social capital." 3. What is fiscal policy Using the income expenditure model, explain the effect of an increase in government spending on real output. What factors or possible problems should a government bear in mind when devising an expansionary fiscal policy Fiscal policy aims to correct the economy by increasing or decreasing tax levels and public spending. For example, if the economy is down and the government wishes to fuel the economy, it will reduce tax levels. This will give consumers more disposable income and encourage spending. With the increase in demand, businesses will then turn to higher production. It can be seen that in fiscal policy, the sensitivity of interest rate is not significant for the policy to be effective. In this type of macroeconomic tool, the economy is corrected without influencing the level of interest rate in the economy. The policy directly targets consumer spending and business production. However, economists should also take into account that any increase in government spending (a fiscal policy) will have a tendency in raising interest rates, causing private investment and net exports to fall. This is known as the crowding out effect. 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 shows the combinations of interest rates and the aggregate output for which the goods market is in equilibrium, while the LM curve gives out combinations for which the money market is in equilibrium. The IS curve is the downward sloping schedule which shows the equilibrium in the goods market. The slope of the IS curve denotes the interest elasticity of investment demand and the marginal propensity to save. The LM

History and Theory of New Media Research Paper Example | Topics and Well Written Essays - 1250 words

History and Theory of New Media - Research Paper Example Modern art during the turn of the twentieth century was hence unanimously described by theorists and researchers as an art at the brink of an explosive breakthrough, which challenged and at times threatened the conventional artistic establishments, due to its innovative application (Schwarz qtd. in Picht and Stockmann 11). However the introduction of digital technology in media art has resulted in a serious crisis in the field. According to Cook and Graham (79-80) media art is going through a phase of major transformation and is constantly at loggerheads with conventional art. However since the institutions which support the conventional art continue to exist, artists in contemporary world are afforded an opportunity to pursue their choice of art thus giving an impetus to use of internet and technology in media art. Cybernetics: Meaning, origin and definition: The term ‘cybernetics’ was first put forward by a French mathematician and physicist Andre Marie Ampere and was used in reference to political science (Ascott 176 ). According to Roy Ascott's theory of cybernetic art the artists must recognize art as a scientific discipline of cybernetics whereby control and communication between the animal and the machine is studied. Technology helps in creating a new form of art which is inspired by cybernetics and is concerned with controlling and regulating behavior in the environment as well as of organizational structures (Aylett et al. 178). According to Ascott cybernetic art represents "a change in the artistic focus from product to process and from structure to systems, which will turn the observer into a participant" (qtd. in Aylett et al. 179) According to Wiener the theory of cybernetics refers to the representation of a complicated set of ideas and notions (such as the conveying of a message), and is related to the use of systems theory as well as control theory (Wardrip-Fruin and Montfort 228). Cybernetics in new media art: Theoretical perspecti ves According to Apter (qtd. in Malina 18) "Underlying cybernetics is the idea that all control and communication systems, be they animal or machine, biological or technological, can be described and understood using the same language and concepts". Along with the development of the theory of cybernetics the field of information technology is also closely related to the manner in which communication systems function and is associated with the type of information which can be encoded, transmitted and decoded. These theories are widely applied in the communication media such as radio or television whereby the signals are transmitted via computers and other similar data-processing devices. The information theory offers various models which in turn can be used to describe and decipher the manner in which messages are transmitted through feedback loops (Weiner, 348). The various theories developed recently particularly the information theory are influenced by the theory of cybernetics wh ereby the concept of processing information as an inherent element, as a means of understanding and explaining artistic process is applied. Various theories such as the theory of aesthetics, the theory of cyb