Group items tagged

This article looks at what the Royal Bank of India believes could be harmful for the future. There are five main points, and one of them talks about the aggregated demand. There is hope for the aggregate demand to increase due to infrastructure projects coming through.

India is facing some macroeconomic concerns. Her economic recovery remains at slow rate. This causes weaknesses in aggregate demand and consumption demand.

While the article as a whole discusses factors of growth and their effects on each country for this year, some parts are devoted to aggregate demand. One such section describes the past recession, in which there was a shortage of aggregate demand, crippling the global economy. Since the growth of the economy, and businesses themselves, rely on consumption completely, lower consumption rates leads to a diminishment of both.

This article is an example of aggregate demand. Its states that demand for energy in India would rise and outpace the aggregate demand of other countries like Russia, Brazil, and China. It is determined that India would become the third largest country of energy consumption in 7 years due to the overall demand of the nation's population.

This article talks about the official data of the unemployment rate and the inflation rate within the eurozone. The low and stable inflation and unemployment being near 12% causes concern about a decreased GDP, as experts fear a deflation would defer consumption and investment.

This article discusses Mexican plans to implement a 5% percentage tax on fattening foods, a 16% percentage tax on chewing gum and a 8 cents specific tax on sodas. This is a fine example in which a government is using excise taxes as a means of discouraging consumption of a product that is harmful for one's health.

The Article talks about the negative externalities of unsustainable food production and suggests that the actual costs to society should be expressed in the price of those products that appear cheap but have been produced by methods which are negative for the environment. It thus describes these negative externalities as "subsidies payed by society".

China's economy is predicted to have a slowdown but is still expected to have an economic growth of 7.5%. There is no need for the government to provide a stimulus. China's economic growth seems to be in a steady stream of "ups and down" but consumption (AD) is increasing as well. This should push economic growth much farther.

This article talks of the results that happened in Cuba when they abolished all private property rights and turned to communism. This eventually led to the collapse of the Cuban economy. The article mentions, "On the eve of the Cuban Revolution about 80 percent of Cuba's arable land was under cultivation (or used for grazing) and domestic production supplied 70 percent of the country's food consumption." Over grazing of the fields led to similar tragedy of the commons.