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Daniel k

San Diego Source > News > Aggregate supply declining; S.D. may run out in less than 10 ... - 0 views

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    The article talks about declining aggregate supply in San Diego.
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    Aggregate production in the San Diego region, which peaked at 11.8 million tons in 1999, had dropped to just 4.5 million tons in 2009. The decline in aggregate supply in San Diego may be a problem once the economy is back at full steam.
Roman p

Aggregate Supply in San Diego - 0 views

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    The article talks about the aggregate supply in San Diego. Over the last couple of years the aggregate supply decreased. The different causes are also explained in the article.
Stephen b

Aggregate effect benefits Breedon - 0 views

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    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
Jan d

Record U.K. Oil & Gas Spend - 2 views

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    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,
David s

Russian Economy Poised to Slow Again, World Bank Says - 0 views

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    The Russian Economy is facing a decrease in economic growth, largely in part due to its inflation, and dependence on oil production (which accounted for 50% of revenue last year). In the future, with oil reserves depleted, the oil production will not be able to produce as much, and aggregate supply will be down. This poses a problem for Russia as the supply curve will shift left.
Maya m

Lithuania Industrial Production Rises 4.4% In January - 0 views

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    The article talks about how Lithuania's industrial production has increased. This means the industrial aggregate supply has increased. I can't say if there was a shift or a movement on the curve, but it would be interesting to investigate more about this.
Jan d

The Cypriot economy: Through a glass, darkly - 0 views

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    This article has no direct correlation to supply side of an economy, as it mainly talks about Cypriot economy's bank crisis - credit crunch, predictions on GDP and changing patterns of banking (limitations to every-day withdrawals from ATMs). But the reason I chose this article is that they should aim at increasing the production side of an economy and so aggregate supply, shifting the LRAS curve to the right, and, in addition to that, structural reforms of the economy which overly depends on the banking. Particularly, Cyprus should undertake interventionist supply side policies, such as investments in infrastructure - roads, railways, harbours, airports and telecommunications all serve to lower production costs of all economic agents in a country. Or perhaps investments in technology and industrial policies which would increase the productive capacity of an economy.
David s

Business Cycle in Indicator Points Towards Slow Growth Revival in Indian Economy - 1 views

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    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.
Andreas k

Federal Spending Cuts Threaten Delays in Air Travel - 0 views

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    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.
Martina d

Horse meat scandal: Shoppers who buy 'cheapest food' at risk - 0 views

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    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.
Martina d

Property sales see winter lift, HMRC figures show - 0 views

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    The article discusses the total sale of houses (a good) is rising in the economy in the UK. Due to this rise by 5%, the economy was able to grow and increase. The real estate businesses and bank of England are able to work together to get maximum profit from the rise in sales from houses.
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    There has been an increase in how the amount of houses sold, which created an improvement in the economy of the UK. The increase was created by the increase of supply of mortgage, which increase the possibility for the population to buy a house.
Annabelle b

Some Fed Members Fear Monetary Policy Effects - 0 views

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    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)...
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    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."
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