Group items tagged

This article talks about the increase in demand of gold and the amount of price paid to get gold between 2010 and 2011. The demand of gold increased by 11% from the first quarter of 2010 to the first quarter of 2011 while the price increased by 40%. The increase in demand directly increases the supply of gold because if people want it, the rate of mining would increases so that gold is available at all time. Also, the amount of money spent on the gold would also increase because gold does not grow and one day gold would finish. The people who sell the gold would therefore put additional money on the price of the gold to get their own profit. This process would however continue because every time gold is found, the amount of gold left in the earth reduces. This allows the seller to always increase the price of the gold which means that there can never be a balance between the price and the demand. As the demand of gold increases, the price of gold decreases and the amount of gold left on earth decreases. Looking at the chart in the article, we can see that if the demand of gold increases the supply of gold would also increase but there was a slight decrease in the years 2007 to 2009. The article states that 'China's total annual gold demand topped 700 metric tons for the first time ever last year and is expected to keep rising over the next decade'.

Gas being an inelastic product, has a small change in demand if the price is increased. It was a good time to increase the price of oil because "The improvement in the nation's economic health has increased demand for oil" so there would be an increase in revenue if the price was increased.

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.

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.

This article talks about the increase in price of oil and the increase in demand for oil. Analysts said that the price of oil would increase as time goes and suppliers are trying to meet the demands of people. The cost of one barrel of North Sea Brent has increased and made a new record in both euro and pounds. 'Many analysts say the broader trend is that prices will continue to rise because of risks to oil supplies'. Oil supplies were slowed down in the late 1970's and early 1980's because of the war between Iran and Iraq. During global consumption, oil would increase in price by about 1.3 million barrels a day said by the U.S. Energy Information Administration. However, supply will fall by about 310,000 barrels a day.

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.

This article talks about the increase of oil prices due to the price of the dollar being down. This article supports the topic of this week because as the demand of oil increases so do the prices. As the demand for the consumption of a product increases, the price for the product either increases or decreases. Changes in the relative prices of goods (such as oil) occur because of technological change or shifts in supply or demand. Based on this article "The price of oil and gasoline are up because the Federal Reserve has driven the value of the dollar down." - Charles Kadlec

This article describes how oil has become less elastic through the past years. It also discusses the balance between the scarcity of oil and the demand being supplied and the quantity demand. Oil is still in the ground, and it has been supplied frequently the past ten years, but there is some economical decisions to make to set the standard for the future of oil.

The demand of oil has been increasing over the past year which is playing a role on the demand and supply balance. Because the demand in oil is increasing, the price of the oil would also increase. It takes longer for oil to be drilled from the ground which causes the oil to take longer time and a change to the response in price. "In economic terms, the oil supply is becoming less elastic as new oil supplies come increasingly from unconventional oil." The demand for oil reflects on how much we need oil in our everyday life. Individual people can reduce the amount of oil they use by using public transportation, if where you want to go is close by. This saves gas and oil because you do not need your car and the bus would carry a lot of people.

This article describes the change in oil prices on the population. The article states that the supply of oil is becomming less elastic and therefore there is a increase in price. The way to win oil becomes harder, because deeper holes have to be made to extract it from the earth. The article furthermore looks into changes from an economical point of view. It looks at examples of what can be changed and where changes have been made.

A large number of people in the USA are moving downtown, therefore there is an increase of demand for the cities downtown. Moreover, with the increase of demand for houses, there is an increase of demand of transportation, shops and other shops and services that are useful for the people that live downtown.

This article talks about how a few larger electricity and gas companies have increased their prices after the news about a cold and bitter winter in the UK. If we apply this to what we have read about this week, they know that the demand for fuel in houses will increase, but with a increased price they can avoid shortage during this period of time, hopefully. At leas this is what they try to do. They also know it is profitable for them, since people will still need the fuel due to the cold, so the income for the company gets higher.

Gas prices increased in California about 0.39 cents between September 21 and October 7. To decrease prices Gov. Jerry brown ordered to make an early transition to winter-blend gasoline which evaporates more quickly. This move could increase supply by as much as 10% said Gov. Brown.

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."

US economies are still growing after thee great recession and according to economists the US should see an increase in economic growth by 2014. It is also mentioned that unemployment rate will continue to decline as economic growth becomes faster.

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...

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.

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,

The strong dollar and increasing competition present a barrier for McDonald's effort to increase its profit. McDonald's used to have inelastic demand, since it did not have much competition and changes in price would not affect total revenue. If they wanted to increase total revenue, they just raised the prices. However, nowadays, as competition takes place, their demand is becoming more and more elastic, because of the more substitutes offered by competition.

The article shows that that oil has a big influence on a lot of products. In this case it increased the price of sugar by 20%. This might seem a lot so you would expect the demand for sugar to decrease. However since sugar does not cost a lot, a 20% increase in the price will not make a big difference. An increase of a few cents of the consumers bill will also hardly be noticed. The price elasticity in this example is very low.

This article talks about how the prices of food have increased in many countries around the world. In the past years the price of wheat was low, for example in May it was about $200 but in September the cost rose to $400, just within some months. Economists say that the prices of foods have increased continually since 1845. Food scarcity is also caused by the weather because if there is no rain in a country then the crops would not be able to grow well for example Australia. However, the wants for meats in countries like China and India is high and this also increases the demands for cereals. The cereals are used to feed the animals in this countries so that the country can have enough meats.

Japan's trade deficit nearly doubled in October, as growth in imports outpaced robust increases in exports to the U.S. and China, the Finance Ministry reported Wednesday. A weakening in the Japanese yen over the past year has helped exports, but it has also increased the cost in yen terms... This is the importance of looking at **how** payments balance. Though Japan has seen some significant increases in exports, most notably in the vehicle and chemical industries, too much money is still leaving Japan. Part of this may be due to the fact that many Japanese firms depend on foreign manufacturing. The government has plans to revitalize a large manufacturing sector of Japan, but the question now is how quickly and how much will it help?

These days, with an economy recovering from a slight collapse and people looking to alternatives to gasoline and coal, a shortage of oil is not very good for the fossil fuels industry. Yesterday, the Organization of Petroleum Exporting Countries announced that oil prices would remain stable, even in these times of uncertainty. With all the negatives of oil (the pollution, the wars it has caused, the danger it can put workers at to obtain, etc.) demand has started to decrease. But, petrol suppliers can't just increase their prices like the supply demand curves might predict because they don't want to risk scaring the remaining consumers into thinking the price of oil will only increase as more of it is used up. This has left OPEC and all of it's members in a bit of a pickle.