by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How can Fiscal Policy Affect Trade Imbalances? If a nation is experiencing the inflow of foreign investment capital associated with a trade deficit because foreign investors are making long term direct investments in firms, there may be no substantial reason for...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Establishment Payroll Survey? When the unemployment report comes out each month, the Bureau of Labor Statistics (BLS) also reports on the number of jobs created—which comes from the establishment payroll survey. The payroll survey is based on a survey of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Effect of Government Investment in Physical Capital? Government can invest in physical capital directly: roads and bridges; water supply and sewers; seaports and airports; schools and hospitals; plants that generate electricity, like hydroelectric dams or...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the US Labor Force? The US Labor force is the number of employed plus the unemployed. What is Employed and Unemployed? Employed: currently working for pay Unemployed: Out of work and actively looking for a job Should we count everyone without a job as...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Crowding Out of Physical Capital Investment? A larger budget deficit will increase demand for financial capital. If private saving and the trade balance remain the same, then less financial capital will be available for private investment in physical capital....
