.

On its narrowest sense, GEM models are sizable numerical models that combine
economic theory with actual economic data to calculate the effects of economic policies
or shocks. GEM models attempt to capture the structure of the economy and the
behavior of agents by fitting economic data to a set of equations (firms, households,
government). This offers a framework for modeling policy changes and tracking their
effects on significant economic factors, such as income and expenditure flow.
The closed economy models indicated on the power point presentation all
assume costless conversion and thus linear pricing, which by design reduces the
quantitative importance of looser collateral constraints on house prices. In contrast,
open economy is a type of economy where not only domestic factors but also entities in
other countries engage in trade of products (goods and services). Trade can take the
form of managerial exchange, technology transfers, and all kinds of goods and services.
Internal balance involves the government’s efforts to attain growth, full employment, and
price stability to avoid inflationary pressure, internal balance is achieved through the use
of government spending, taxation, interest rates, and money supply. External balance
involves achieving a favorable balance of payment where a country aims at achieving
high levels of exports; the balance of payment depends on the terms of trade where
these terms of trade depend on the prices of goods and services and also the exchange
rates.

On the aspect of implications of philosophy to the management, administration

and leadership. As a sound decision maker, he or she must have a belief system and
an in depth understanding of leadership, management, administration and supervision
as they complement each other in achieving educational goals, objectives and success
transcending it to all its entities, the business leaders, and their subordinates. It plays a
vital role in setting the direction for successful organization through productive
leadership that are dependent on its fit with the social and organizational context in
which it is exercised and in conformity to sets of belief which is the philosophical
dimension embedded with management, leadership and administrative principles. It
also helps the business in shaping the long-term impact on organization’s improvement
efforts.

The organization is a functional structure established to achieve goals; the

organization has established system in the pursuit of achieving the goals. Business
Organization is a huge organization that has a structured system. The different activities
are divided on the different level of positions that assumes specific duties and
responsibilities aimed to achieve organizational goals. The different leadership styles
guide the top management to create and establish an organizational climate where
everyone is connected and working harmoniously, as they perform different
management functions and administering activities aimed at achieving the goal.
Implication to the Philosophy of leadership management and administration alludes to the
conviction with respect to the way in which information concerning the phenomenon
ought to be gathered, analyzed and utilized. In other terms, it is the fundamental belief
system that guides the research to further make policy decisions and interventions.