—Unemployment starts ticking higher. The jobless rate, which stood at 8.3 percent in 2007, jumps to 18 percent in 2009. It is now almost 25 percent. Property prices begin to decline, and the real estate boom eventually bursts, as demand plummets.
Boom and the bust represents the business cycle. The boom being the positive output gap and the bust representing a negative output gap (recession) In this case Spain was experiencing a boom, but after a while they faced a recession because they did not have spare capacity in the factors of production as they use to have (used too much doing the boom)
the jobless rate for those aged between 16 and 24 is 52 percent.
Because of the very high unemployment rate, it is very difficult for Spain to get out of recession. This is one of the reasons why Spain may be forced to ask for a bailout.
in sales taxes to get a handle on the size of government debt and appease markets.
Possible evaluation: Higher tax may increase the government's income, but based on Laffer Curve, if the new tax rate is beyond the most effective tax rate, then in reality, income can be lower.
Boom and the bust represents the business cycle. The boom being the positive output gap and the bust representing a negative output gap (recession) In this case Spain was experiencing a boom, but after a while they faced a recession because they did not have spare capacity in the factors of production as they use to have (used too much doing the boom)
Two graphs with the unemployment in micro perspective graph and the boarder working age population (basically population graph of workers) graph to compare and analyze the effects
Last year, 86 million Americans were not counted in the labor force because they didn't keep up a regular job search. Most of them were either under age 25 or over age 65.
Since unemployment is when a worker is willing and able to work at a given wage rate but there is no job (work) available, when they have given up to look for a job they are not counted in the unemployment rate anymore.
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.
, demand from China would be the determining factor for continued growth
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.
Japan's factory output was weaker than expected in April because of slower demand for electronics goods, especially in China. Output was 0.2% higher in April from March, the Trade and Industry Ministry said. Analysts had forecast a figure of 0.5%. The ministry said it expects output to fall in May, before rebounding in June.
It was the first deceleration in a year, but it was not nearly as severe as other setbacks in the last couple of years.
Mitt Romney
insisting that the president has held back the recovery and intends to do further damage.
White House focused on
solid growth in consumer spending and a surge in residential building.
the private sector is continuing to heal from the financial crisis,” said Alan Krueger, chairman of the president’s Council of Economic Advisers.
subsidize the employment of teachers and first responders to emergencies.
Economists initially predicted a much weaker showing in the latest quarter, partly because of a large accumulation of inventories in the fall and winter that needed to be worked off. But in the last few weeks, expectations rose on strong jobs reports and rising consumer confidence.
Consumer spending did turn out to be the major strength
Business investment, which had been a bright spot, declined in the most recent quarter.
Government spending also fell more than anticipated,
thanks in part to a particularly large drop in military outlays.
Consumer savings declined.
decline in business investment.
Businesses spent more on equipment and software but much less on infrastructure.
in construction related to mining, oil and gas, while manufacturers actually increased their spending on factories and office buildings.
another significant slowdown, saying that last year’s hiccup was the result of a series of external shocks, like a spike in gas prices (this year’s was less severe and is already subsiding) and the Japanese earthquake.
Stagnation in Europe and a slowing of China’s breakneck expansion have weakened global demand even as corporate profits have continued to outpace expectations.
After resisting it for four years, Scottish Labour is also preparing to support the policy if Alex Salmond's government presses on with plans for a £130m "health levy" on supermarkets to claw back the £125m increase in their revenues from a 50p minimum price.
said in January that inflation and a drop in alcohol misuse meant only a 50p cost would have a significant impact now.
down more than 5 cents from two weeks earlier, when the average was just a few cents below the $4 mark.
crude oil for allowing gasoline
Gasoline supplies are plentiful, but crude oil prices had been "propping up" gasoline costs, she said. As crude oil prices have stabilized, gasoline prices have fallen.
Even looking ahead to later in May, as the country enters peak driving season, prices might not jump if crude oil stays stable because gasoline supplies are flush
one year ago was $3.8
ust three cents under
tabulates prices every two weeks at thousands of gas stations nationwide.
The city with the lowest average gas price was Tulsa, Oklahoma, at $3.52
How was price impacted?
-average gas prices dropped by 5 cents (USA)
-$3.91 for a gallon on average
-below $4 mark
-if crude oil prices stay stable another 10 cent change is expected
-prices in peak season might not change because of the steady gasoline prices
-average last year $3.88 three cents under current
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Toyota has extended production cuts at its factories in Thailand and Japan due to shortage of parts in the wake of floods in Thailand. The company said production in Thailand will remain suspended, while Japanese units will work at reduced capacity until 12 November.
termination of subsidies for those immunizations was seen as undesirable in light of the fact that an increasing number of young people have been diagnosed with those conditions
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.
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.
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.