Potential Output of Bulgaria Research Paper Example | Topics and Well Written Essays - 750 words

Potential Output of Bulgaria - Research Paper Example The study of potential output involves, therefore, the study of GDP, inflation rate and the period during which such economic indicators moved substantially and closely in relation to each other. Potential GDP basically used to measure economy's productive capacity. Although potential output measures the productive capacity of the economy, it cannot be told as a technical ceiling on output that cannot be exceeded. So it is better to say it is a measure of sustainable output, in which the intensity of resource use is neither adding to nor subtracting from inflationary Pressure. If the actual GDP raises more than potential output (or when GDP Gap is positive) then the constraints on the productive capacity start to bind and the inflation tends to increase. Likewise if the potential output raises more than actual GDP (or when GDP Gap is negative) then the resources remain idle and inflation tends to decrease. The difference between potential output and actual output is known as GDP Gap. The potential output helps an economy to equate their unemployment rate to Non Accelerating Inflation Rate Natural Rate of Unemployment (NAIRU). Further it helps to make inflation projections, assess the government budget, set interest rate and provides a medium term baseline that allows the policy makers to have a medium term focus. Bulgaria, is a communist country that entered the EU on 1 January 2007, has accomplished able advance back an above bread-and-butter abatement in 1996. Successive governments accept approved charge to bread-and-butter reforms and amenable budgetary planning, but accept bootless so far to rein in ascent aggrandizement and ample accepted annual deficits (Economy Overview, n. d.). After having enough knowledge about the Potential Output the paper attempts to study about the potential output in Bulgarian economy. The Bulgarian economy was formerly a communist country before it joined the European Union on January 1st 2007 (World Bank, 2003). The economy has become now much stronger after the major economic downturn in 1996. The successive governments of the economy continued to implement measures in order to sustain stable economic growth and overcome unemployment problems. But it failed to resolve the problems of inflation and large current deficits. The measures introduced were mainly targeted to reduce corporate and individual taxes, curtailing corruption and attracting foreign investment. The economy in October 2002 was declared as Functioning Market Economy by the European Commission because of its significant progress. According to the reports of World Bank, in 2006 Bulgaria succeeded to achieve the highest levels of foreign direct investment, as a share of GDP, among Eastern European countries. But the growing current-account deficit (21.5% of GDP at the end of 2007) and excessive reliance on foreign capital inflow made the economy to depend upon external shocks. Moreover the international financial crisis led to a new flow of investment which could barely cover the current-account deficit in 2007--at 98.2%. The Bulgarian government in 1997 in order to attract additional foreign investment, it lowered corporate tax rates to 10%, which was reported as the lowest rate in Europe (Economy

Sterotype Paper Assignment Example | Topics and Well Written Essays - 1000 words

Sterotype Paper - Assignment Example In the modern world, man people especially in the developed countries have ended up being obese or overweight as a result of unhealthy eating habits. This stereotype has negative effects on obese or overweight individuals. This can be considered a negative labeling on these individuals. Stereotyped individuals will always perform poorly in their endeavors when they feel they are being stereotyped. Results from past studies have indicated that individuals experiencing stereotyping are more likely to be violent or hostile. Most of them have been proved to experience from lack of restraint and self-respect. It is also important to posit that individuals who are stereotyped find it very difficult to make effective or appropriate pronouncements in their activities. In addition, stereotyped individuals have been proved to have a higher risk of consuming high amounts of insalubrious types of foods. Even after stereotyping has been negated, the thought that a certain individual or group of i ndividuals was stereotypic will still remain engraved in their minds for a very long time. This may have negative effects towards an individual as his/her confidence in front of others may be affected, s/he may be very uncomfortable and may avoid eating in front of other people as they may harbor certain thoughts that other people may view them in a bad way (National Science Foundation, 2010). Secondly, I have always had a stereotype that all Muslims are over-religious. My stereotype has been due to the fact that, Muslims have to pray every now and then, and they have to pray while facing Mecca. They also pray at distinct positions. In comparison, individuals from other religions do not portray such religiosity as they have to go to church only on Sundays. Attending church service during weekdays is limited to a few individuals. This this may appear as a positive stereotype, it may affect the ability of Muslims around me to perform if they become aware of my feelings. Results from s tudies done in the past have shown that positive stereotypes similarly results or leads to bad feelings and sentiments from individuals who are being stereotyped (Trevan, 2013). Muslims in this cases can feel depersonalize, may be agitated, and develop strong feelings of hate towards those who stereotype them. However, not all Muslims would be agitated by any comment or indication that they are over-religious. There are some who may pretend to be over-religious so that they can be identified and be respected for that. Being stereotypic towards such an individual will make him happy and consequently boost his/her feelings. In other words, if a Muslim around me would become aware of my feelings towards him/her, this would definitely affect individual personality. It is important to consider the fact that a positive stereotype of negative feelings towards other people’s religion produces negative effects or sentiments as the individual being stereotyped automatically becomes awa re of the fact that it is just a matter of time before negative stereotypes are implemented towards him/her (Trevan, 2013). Thirdly, I have a stereotype towards women that they take too long to shower and they always smell good. In the modern world, it is difficult to come across a lady smelling of sweat like many men do. Women are very sensitive about their appearance and will go to great lengths towards