Group items tagged

Consumer spending is one of the key factors of macroeconomics. Consumer spending could have dropped partly because of the increasing unemployment rate, causing consumers to hold off spending. This means a drop in demand, thus a drop in supply, a decline in GDP, the shifting inwards on the PPF curve, the increase in government spending to pay for unemployment benefit, thus an increase in deficit, and in some cases the outset of deflation.

Showing that further un decided taxes are also going to be implemented.

This shows the reasoning for the change in taxation. However it does not actually show that this will impact the demand of alternative products.

Showing that these taxes may spread into other economies.

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. 

if consumer sentiment improves, they will be more willing to consume, therefore increasing AD

Decrease in GDP is a cause for the high unemployment. 

Sales = consumer spending. Less consumer spending/confidence will result in a decrease in GDP

Comparison to what the unemployment figures before the recession. 

What spain is doing to remedy the unemployment. 

Even though government expenditure would increase the AD/GDP, which would result in more employment, Spain is being forced to reduce government spending. 

Large decrease in GDP 

Solutions to the problem by analysts. 

Investors are also key in GDP, which would boost economy, but they are weary. 

Excess Supply - cause 

Oil consumption is falling - less demand 

An outward shift in supply

Resulting of new drilling techniques and finds 

Demand is low because of economic weakness and increase energy efficiency 

Decrease in price to reach equilibrium? 

Price will rise in future 

Prediction for near future 

Gasoline should also decrease in price Happier consumers 

This is the article for my IA 1

movement on the demand function

loss = bad 

increase in unemployment

Figures for a graph 

Maybe a Phillips Curve Analysis would be interesting?

Possible cause to decrease in unemployment 

Another cause 

Hint at what will happen in the following year

Look at it from AD/AS diagram perspective. What might also be the consequences?

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