Group items tagged

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. 

Lack of factors of production - mainly land need for importing from foreign countries possible solutions- Free trade

should be a decrease in wages as revenue decreases - sticky wages 

deflation possibly could be advantages - increase in spending power, international competitiveness etc 

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

Demand has to decreased, ads for other alternatives.

Evaluation in which one is better.

Reason explaining the higher demand and low supply.