Group items tagged

This might be stretching it a little bit, but I had a hard time finding articles about aggregate demand. I think it works though. The government in Singapore wants to increase habitants from five millions to a high of seven. This has created a big opposing group, making the aggregate demand for immigrants less. Since a smaller number of people are open for immigration, the demand has decreased!

This article is essentially connected to aggregate demand (investments), but the following part can be perfectly analyzed with the this week's topic, aggregate supply: "The investment will also help U.K. energy security by reducing hydrocarbon imports at a time of higher international oil and gas prices. "Too often we've been seen as part of the problem, rather than part of the solution because production output had fallen. But we're stopping the decline and increasing output and that will have a more positive impact on the U.K. economy," Mr. Tholen told The Wall Street Journal. The higher investment in new projects and redevelopment of older fields will help bring another 500,000 barrels of oil equivalent a day onstream by 2017, taking output up to around 2 million barrels of oil and gas a day by 2017 or earlier. The higher investment in new projects and redevelopment of older fields will help bring another 500,000 barrels of oil equivalent a day onstream by 2017, taking output up to around 2 million barrels of oil and gas a day by 2017 or earlier." High international oil and gas prices mean higher average costs of production - change in the costs of raw materials, because oil and gas are widely used in most production processes. This is the reason for the shift of the SRAS inwards. However, higher price level means that the oil production and oil-transforming industries will increase their output. This is also great for the sake of price of imports, which are relatively too high, allowing domestic industries to decrease their average costs of production, meaning that SRAS will increase. So we should consider effects of both aspects and add them up in order to get a real picture (overall effect of current oil and gas prices). Investments are shifting the LRAS curve to the right, because there are likely to be improvements in the quality of the factors of production (technological advancements, discovery of new resources and re-establishing the past (oil) fields,

Quarrying and aggregate supply firm Breedon believes profits will "significantly exceed expectations" after margins continued to improve in the final few weeks of last year. The company, which has its Scottish headquarters at Ethiebeaton in Angus, said market forecasts for the year look set to be significantly surpassed during a finish which escaped the disruptive influence of winter weather. We don't often think about how macro- and micro-economics can come together, but, for big companies, one is no more important than the other. Not only do you have to think about the margins and competition of your own market, but how your market is doing in general. It doesn't matter if your beating the other guys with a better price and more demand if that price is barely enough to cover what your supplying. On the flipside, your countries economy could be doing great and your factors of production most favorable but, if everyone's getting more benefit from those advantages than you are, it's only a matter of time before get too far a head. This article is a perfect example of where a European company has become enthusiastic about future profit predictions based not only on competition and margin but just on the welfare of the whole country in general

This article highlights cuts in government spending in the US, specifically on airports and airlines. We know that government spending is a major component of aggregate demand. If government spending goes down, it is likely we will see a shift left in the aggregate demand. This is the result of about 10% fewer workers at any given time in the air transportation industry around the country. The article specifically highlights that this includes air traffic controllers as the decrease in them most affects consumers.

Fall in demand for durable goods (orders for durable goods in the US fell 5.2% in January) means also fall in aggregate demand. Falling aggregate demand - the total spending on goods and services implies firms will start to lay off workers and unemployment rates are likely to rise. According to the business cycle, at current point there is a negative output gap, because economy is producing below its long-term trend economy can sustain.

The article talks about the water demand of different countries and the different areas it is used for. This differes a lot from country to country. In some countries is used for agriculture and in others it is used for households or industry.

A lot of people have preached in the past about how we should destroy the social class system, about how the difference between wealthy and impoverished is an abomination and that the workers should rise up against their oppressive bosses and show them that the employers need their employees and not the other way around. However, most people probably haven't considered the economic angle to it. I hadn't, till I read this article, and I didn't more than the first few sentences to get me thinking. In a country where 10% can buy whatever they want and the other 90% can barely afford to feed their families, how do you get anything done. Those 90% probably do menial labor all day, creating goods and providing services for the 10% that act as their directors, and while this system works out fine for those 10%, your entire aggregate demand is still comprised of only the wants and needs of a tenth of your population. The fewer people you have with the ability to buy things, the smaller your macro-economic activity will be and, thus, your GDP. Now, while this kind of inequality is not fatal to a countries economic stability, per the previous reasons, it definitely puts it at a disadvantage to countries of equal wealth, resources, and population where demand is spread more evenly per capita.

This article talks about how people in the UK tried to buy cheap meat, and instead got horse meat. The article is related to aggregate demand as it involves the whole economy of the country: people can't consume as much, therefore they are buy cheap meat online or importing it so that they won't spend as much money. However, the government is preoccupied as there is no control over the meat. This is not only happening in the UK, but also in other countries where the population is not consuming as much due to the lack of money and the economic crisis.

As the article states: "The world's largest economies took a step toward common global guidelines for exchange-rate policies with a pledge Saturday to refrain from targeting their currency policies to gain a competitive trading advantage." This is well-involved in this week's topic, which is aggregate demand. Particularly, this article refers to its component, net exports (export revenue minus import expenditure, or simply X-M) and then its subsidiary component, changes in exchange rates. If a country's exchange rate becomes stronger, then this makes the country's exports more expensive to foreigners and vice versa. Manipulating with exchange rates can bring a certain country substantial trading advantage and this is what G-20 wants to overcome and allow free-trade market as it should be.

This article highlights how certain macroeconomic indicators in India are suggesting that the Indian Economy may be recovering from a "valley" in India's Business Cycle. Aggregate Demand is increasing due to the increase in consumption (the article specifies tourism and domestic air travel). Furthermore, "foreign trade related indicators" have increased hinting at an increase in the aggregate supply of India as well.

WASHINGTON - Airlines and airports across the country are preparing for across-the-board federal budget cuts due to hit next week as if they were a hurricane, although with even less certainty about how many flights they will have to cancel and how many passengers will be stranded.

Consumer prices rose 2.8 percent from a year earlier, compared with 2.7 percent in January, the Office for National Statistics said in London today. The two major reasons for persistent increase in average price level are higher energy bills and a weaker pound. Housing, water, electricity and gas added 0.11 percentage point to annual inflation in February - the biggest upward impact. Investor confidence unexpectedly rose to a three-year high of 48.5 in March from 48.2 in February, which means higher aggregate demand and demand-pull inflation.

Increasing aggregate demand helps China, which is currently operating with a deflationary gap, to use its economic resources to a greater extent. The increase in real output is an increase in real GDP, so economic growth is currently in progress. However, the current situation is a very fragile one, according to the chief economist at ANZ in China: ""The current economic rebound remains fragile, and could falter with tightened monetary policy conditions." So it is now up to Beijing's monetary policy makers to sustain this economic growth...

This article discusses how the goods are less in demand so their GDP is decreasing. Goods may be too much, the economy is shrinking every time its recorded and is projected to fall in the coming months.

The article talks about how the fast economic growth of countries like China and India, will not be able to compensate for the economic slowdownin richer countries. There will be a negative growth in world economy. To improve world economy, most countries would need the aggreagate demand of countries like China.

Fiscal policy is the set of policies relating to government's spending and taxation rates. Military spending is a part of government spending and is closely related to domestic industries, particularly in the U.S. The U.S. government is lowering the military budget, therefore decreasing aggregate demand both through government spending and through implications to other industries interwoven with military. So this is deflationary fiscal policy, which is reducing U.S. military power on a global scale.

This article talks mainly about several problems affecting monetary policy. Among those are instability to the financial system, a sudden rise in interest rates and inflation. Presently, Fed is using easy monetary policy to increase AD. There is also quantitative easing mentioned in the article, which refers to purchases by the central bank of long-term bonds or $85 billion a month in Treasurys and mortgage-backed securities so that the money supply increases. Again, the major problem related to this Fed strategy is inflationary pressure (also by selling $1.1 trillion mortgage-backed securities)...

This article by Jeff Cox discusses how the Fed is using the monetary policy to increase aggregate demand. It also presents problems affecting monetary policy. The problems are as follows: "Among those concerns are instability to the financial system, a sudden rise in interest rates and inflation."