Group items tagged

(evaluation) not enough money is spent by Federal Reserve 

Increase in supply of money keeps cost of borrowing (long-term interest rate) low

high unemployment = the economy is not doing well. 

The main reason why Fed implemented the policy 

The decision is influenced by political factors 

Fed decided to implement the policy because economy is not growing quickly enough 

Draw a AD-AS diagram to explain the results of AD shift on economy 

Without Fed's help, unemployment may increase or be stagnant. Maybe talk about Okun's law, which states that 3% increase in output corresponds to a 1% decline in the rate of unemployment

Why using monetary policy, not using fiscal policy? What are other options?  

The significance of unemployment rate is clearly indicated, such as the the impact on Obama's re-election. 

Unemployment raises when there is more demand for working because no matter whether there is an increase or decrease in the working labour force, the number of available jobs are limited. Because there is a limited number in the number of jobs, the increase in demand for employment raises the unemployment rate. 

The word 'recession' can used to introduce the Keynesian economics with the boom and the busts cycles and monetary and fiscal policies to reduce these cycles. 

This indicates the influence of America's unemployment rate as well as their economic growth to the other major countries, such as China and India. A increase in America's unemployment rate resulting in a decrease in America's GDP growth has affect on the economy of China and India, such as in exporting goods. 

The decrease in the prices of government bonds in Germany and United States indicates that the citizens dont have the trust to these countries for their skill to return the money with a fixed amount of tax. This is also another indication for the economy not doing well. 

The main factor of decrease in America's GDP is stated as the overall decrease in the demand for goods since many economies are not successful. 

Europe can be noted as one of the important continents which greatly affect the global economy. 

Whether a company has a diverse target audience or not can be a indicator to determine the impacts of global slow down in markets. 

A graph illustrating a global decrease in demand can be applied to draw the consequences of decrease in GDP. 

The economic policies which President Obama used can be described thoroughly in this section, such as fiscal and monetary and their success. 

Both the positives and the negatives of America's economy can be explained more in depth and the impact of each factor to the market. 

Business investment is stated as another factor which contributed to the decrease in GDP growth 

Explanation as to what is GDP, its definition and the major factors which influence GDP. GDP= C (consumption)+G (government spending) +I (investment) +(X-M) (exports- imports)

Could give an insight to some statistics as to what the GDP growth rates are for few countries around the world 

Evaluate on the two different perspectives and the extent to both are valid 

reducing unemployment is another factor which affects GDP. State and explain how employment increases GDP. When people are employed this increases consumer confidence and results in consumers to be more willing to pay for goods and services and therefore increases consumption which is a big part of GDP. 

Explain the relationship between the GDP of other countries. Such in this time period, Greece as a country was going the path of becoming bankrupt. The Euro-crisis contracted the economy of many countries. When they have a smaller economy, they have less amount of exports and therefore this could have made the difference between exports and imports significant and influenced GDP. 

Decline in business investment, infrastructures invest more money therefore bring a bigger influence on growth of GDP whereas equipment and software have little affect since it is not as expensive as building roads and buildings. 

Investment on construction of mining, oil and gas is similar to business investment on infrastructure since they acquire a lot of money whereas spendings on factories and office buildings are not as expensive as construction related spending. 

Unemployment benefits have risen, indicating that since there is a population who dont have a job, the government has to afford them unemployment benefits which reduces GDP. 

Natural hazards such as the Earthquake and Tsunami which hit Fukushima on March 11, reduced the exports of Japanese goods to foreign countries due to the news of radiation. Because of a decrease in demand for Japanese goods, this could have reduced imports for America and a smaller difference between exports and imports of goods. 

Because China has such a global impact on the world's economy, the slowing growth of the Chinese economy could reduce consumption of goods, considering the fact that the prices of Chinese goods could increase. 

I could draw a demand - supply diagram from this, indicating the declining demand for cars, consequently leading to a drop in supply. 

This is because China is a massive economy, and it bears an extremely important role in the Japanese economy, especially after having taken over the second largest economy world wide. 

Japan's economy stagnated severely after the earthquake and tsunami. This was due to the rapidly dropping demand from consumers, who deferred purchasing inessential goods. 

This quotation indicates the global impact of the Chinese economy. Because a large proportion of Japanese goods' is exported to China, a decrease in demand means that there would be less output. This can be related to the US GDP article, stating that a decrease in demand would make it difficult to produce the good to be either exported or imported and have affect on GDP growth. 

Need to explain how decrease or increase in currency can influence output. 

Decrease in Growth could mean disinflation is on it's way, to the already injured US economy.

the drop in price will shift the equilibrium downward, and since it is the supply side, the quantity would increase since the supply curve would shift to the right according to the price increase.

The housing market heavily depends on the current economic situation.

A possible evaluation about the consumer confidence. Although the stats/index suggests that consumer confidence is improving, it doesn't mean the economy is fully recovered.

Consumer confidence rose, which most likely means there will be an increase in consumption, which will grow the economy. 

Shows they still haven't recovered, even though they are getting close.

Main component of Australia's GDP growth was export of natural resources. Due to unstable international economy, foreign companies manufacture less good, so less Australia's resources will be demanded. Thus GDP growth slows down.

AD-AS curves can be used 

Since China is Australia's biggest exporter, stagnation of Chinese economy will reduce the export, thus AD

Low consumer and business confidence, which may reduce consumption and investment 

accommodative stance = looser monetary policies

House is most people's biggest asset. The decrease in its price will reduce people's disposable income, thus consumption and AD 

increase by 2%

food prices went up due to inflation. it rose 3.4%. the products are getting more expensive. 

Here some problems are mentioned, which would impact the recent decrease in growth and thus the rise in fuel costs.

This further expands into the reasons of why the fuel prices have risen.

In this sentence we finally get some statistics that we could use to draw a graph and show the shift in price.

Economy is unstable, possibly due to uncertainty in mining?

Increase in I + X, resulting in an increase in AD

Interest rates have been cut over the past year. 

This should cause an increase in C, resulting in an increase in AD. 

Very positive outlook.

Inflation & GDP growth is expected

Caused by previous RoI cuts.

Concerns about mining boom, global uncertainty caused business confidence to decrease.

Resulted in a decrease in I

Increase in employment caused rise in business conditions.

Terrible for everyone: --> no job = no income --> less spending Terrible for government: --> decrease on government revenue --> government has to spend more money on unemployment benefits --> government is receiving less money and spending more money --> budget deficit

Negative economic growth can cause recession

Government policy that focuses on taxes and government spending to improve the economy

Decrease in GDP due to decrease in consumer spending

Decrease in government spending

production increased

consumption increased (leads to a shift in AD to the right)

could possibly lead to a recession in the future