Skip to main content

Home/ IBEconomics/ Group items tagged Good

Rss Feed Group items tagged

Filter: All | Bookmarks | Topics Simple Middle
Yihan Li

BBC News - Australia cuts interest rates in a bid to boost growth - 0 views

www.bbc.co.uk/...business-18327769

shared by Yihan Li on 06 Jun 12 - No Cached
  • The bank cut its key rate to 3.5% from 3.75%.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      Australia's central bank cut its interest rate, which is a monetary policy. This is intended to increase consumption and investment, thus the aggregate demand   
  • At the same time, domestic demand has also been stagnant despite efforts to spur consumption.
  • At the same time, domestic demand has also been stagnant despite efforts to spur consumption.
  • ...14 more annotations...
  • At the same time, domestic demand has also been stagnant despite efforts to spur consumption.
  • At the same time, domestic demand has also been stagnant despite efforts to spur consumption.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      Both monetary and fiscal policies are used to stimulate the consumption, thus AD. However this has not worked. 
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
  • ere have been concerns that Australia's resources-led boom may be hurt by falling
  • ave been concerns that Australia's resources-led boom may be hurt by falling
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      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.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      AD-AS curves can be used 
  • In China, one of the biggest markets for Australian commodity exports, both the manufacturing and non-manufacturing sectors have seen the pace of growth slow in May, raising concerns about a slowdown in its economy.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      Since China is Australia's biggest exporter, stagnation of Chinese economy will reduce the export, thus AD
  • Meanwhile there have been fears about the recovery in the US economy losing its pace after it reported weaker-than-expected jobs data for May.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      Low consumer and business confidence, which may reduce consumption and investment 
  • However, there has been a slew of weak economic data that has come out since then.
  • accommodative stance
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      accommodative stance = looser monetary policies
  • The country's housing market has seen prices fall and continues to remain subdued despite earlier cuts to the cost of borrowing
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      House is most people's biggest asset. The decrease in its price will reduce people's disposable income, thus consumption and AD 
  • Yihan Li on 06 Jun 12
     
    Interest Rate and Macroeconomy  
Arla Takala

BBC News - Scottish minimum alcohol pricing passed by parliament - 1 views

www.bbc.co.uk/...and-scotland-politics-18160832

shared by Arla Takala on 07 Jun 12 - No Cached
  • Scottish minimum alcohol pricing passed by parliament
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      Microeconomics - Minimum price on alcohol in Scotland
  • minimum drink pricing
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      Minimum price = legally imposed price floor below which that normal market price cannot fall
  • Under the plans, the ­cheapest bottle of wine would be £4.69 and a four-pack of lager would cost at least £3.52.
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      Consumers pay a higher price for same product
  • ...5 more annotations...
  • Scottish Health Secretary Nicola Sturgeon said that, as drink had become cheaper, alcohol-related hospital admissions had quadrupled and half of prisoners said they were drunk when they committed offences.
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      The government imposed a minimum price to reduce the amount of crime and injuries caused by alcohol
  • alcohol
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      Alcohol is a demerit good (over consumed or over produced) and has negative effects on society
  • Labour said minimum pricing could generate profits of more than £125m for alcohol retailers
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      Increase in profit for alcohol retailers due to an increase in price of alcohol
  • A study into a 50p minimum alcohol price by Sheffield University said the policy would see a 5.5% cut in drinking - with harmful drinkers' consumption falling by more than 10%, compared with a 2.5% fall for moderate drinkers.
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      The increase in price of alcohol would cause a reduction in demand
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      Minimum price causes a surplus in the market because supply exceeds demand
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      This causes a reduction in market size 
    • Arla Takala
      Arla Takala on 07 Jun 12
       
      This may cause informal markets since some firms may sell their surplus at prices below the equilibrium however this is illegal
Aili Saito

U.S. economy picks up speed but doubts surround 2012 outlook - Jan. 27, 2012 - 1 views

money.cnn.com/...index.htm

shared by Aili Saito on 07 Jun 12 - No Cached
  • seasonal trends
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      GDP can vary due to seasons - similar to seasonal unemployment
  • business investment
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      will lead to a decrease in AD
  • The United States economy picked up speed
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      GDP increase = could express this on an AD/AS graph where the AD shifts to the right as well as AS shifts to to the right (both increase) - also leads to inflation
  • ...7 more annotations...
  • their inventories
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      production increased
  • consumers increased their spending
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      consumption increased (leads to a shift in AD to the right)
  • overall weakness
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      could possibly lead to a recession in the future
  • businesses building up their stock of goods
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      main reason of increase in GDP is the increase of production and increase of stock (AS related)
  • confidence
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      consumer/business confidence will lead to an increase in AD
  • the report showed GDP grew only 0.8% in the fourth quarter, compared with 3.2% in the third.
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      there is a decrease in GDP growth - could possibly lead to a recession (negative GDP growth)
  • too weak to warrant higher interest rates any time soon
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      as interest rates increase, it will lead to an increase in government revenue/profit for banks but also, a decrease in AD
« First ‹ Previous 41 - 43 of 43
Showing 20▼ items per page