This in turn upsets the balance of trade, a net exports are negative, wich results in more being imported and less being exported. Wereas, wen an economy is in a slump, pople tend to spend less on imported goods and services and just focus on the basic necessities. Tis encourages more goods and services to be exported and has a favorable impact on the balance of trade as less is being imported. Kynesian school of thought promotes the use of counter cyclical economic policies in order to reduce of the business cycle.
I times of an upswing these polices cool down the economy while they stimulate it when it is down. Oe of these counter cyclical fiscal policies is progressive taxation. Trough progressive taxation people are taxed according to their income. A the income increases, txation also increases. Tis helps in reducing the high demand. Hnce this policy aims to decrease demand when the economy is enjoying a boom and thus it curbs down the boom. Te retail sales are the monthly economic indicator that measures the the retail goods over a period of time.
Te retail sales report measures the in store sales as well as the sales outside the store. I arranges the sales into categories like food, cothing, acessories etc. Tese figures published in the retail reports benefit the stock investors who are investing in these companies. Te retailer buys the goods in bulk from the manufacturers and then either sells the goods through a wholesaler or by himself. Teir buyers are both individuals and businesses. Hnce it is a very vital essential indicator in order to keep the cycle of investment and sales going side by side.
Te retail sales data may include the price signals that are sent to the consumers. I this way if the consumers demand more, te producers are signaled to increase their supply and vice versa. Qestion 2 Henry Hazlitt is one of the most famous American Economist. H has written several books but two of them; Eonomics in One Lesson (1946) and The Failure of the New Economics (1959) made an immense contribution the world economics.
H provides an introduction to free market economies and has based the first book on FrÃ©dÃ©ric Bastiats essay "What is seen and what is Not Seen". H writes about the money spent on those things that are not beneficial to the society. I the other book he provided a detailed critique of and provided reasoning for his own point. ..
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