Group items tagged

production increased

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

could possibly lead to a recession in the future

main reason of increase in GDP is the increase of production and increase of stock (AS related)

consumer/business confidence will lead to an increase in AD

there is a decrease in GDP growth - could possibly lead to a recession (negative GDP growth)

as interest rates increase, it will lead to an increase in government revenue/profit for banks but also, a decrease in AD

(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?  

Suggests a Decrease in Supply

Increase In Price

No Change in Supply

Increase in Demand.

Decrease in Supply

Increase in Demand

Even larger increase in demand

Can be used for values on the price axis. 

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. 

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 

I can use these numbers on my diagram. 240GBP was the original equilibrium price, 388GBP the new equilibrium.

Again, I can use these figures in my diagram on the Quantity axis.

This explains the shift in demand

As does this.

This partly explains the shift in supply

I can bring in here the concept of substitute goods - that German etc rape crops are a substitute good. That their fall in supply will have lead to an increase in the price for them, leading to a fall in demand. This will have lead to an increase in demand for UK rape crops. Could show this diagrammatically if needed.

Again, this explains the surge in demand. It has a number of different uses. (Called composite demand).

We could start to use this as some kind of evaluation - the fact that there might not have been a shift in supply at all.

So, overall, I could write a commentary about how a small shift in supply and a large shift in demand has led to an increase in the price for rape seed. I can easily show this with a diagram and explain the factors behind each movement. I would need to show the shift in supply being less than the shift in demand. For evaluation I could start to look at the impacts of PED and PES. Might they be inelastic or elastic and how might this impact the price mechanism. I could also speculate a little about what might happen in the future, based on the information in the article, and its impact on the price of rape seed in the UK

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.

negative consumption externalities  (benefit-cost curve) 

Inflation

Decrease in GDP Growth rate,  But still an increase in GDP

Must be an increase in C, I, G or X since GDP is still increasing. 

Suggests Demand Pull Inflation because GPL and Real GDP are both increasing. 

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.

Same points made from the previous paragraph, due to recession they are aiming to increase efficiency and cut costs

I assume that "new growth areas" is to move the company to a more rural area because having a business at a city has a high land cost where rural areas can be much cheaper therefore, this can benefit the firm by having the cost curves to shift outward. 

One of the factors of production, capital by having new technology such as (mentions here) solar panels. It reduces the light energy use, etc costs in the company.

This can be shown on demand and supply where supply shifts outward, showing the loss of 772.17 billion yen on the price axis 

This can be shown on phillips curve (?) to show the increase in unemployment rate by having the aggregate demand to shift inwards. 

Bigger work force, smaller increase in supply--> high unemployment

Growth of Firm is Decreasing, decrease in supply. Also meets 80 percent of coal needs, demand is high

They are a MONOPOLY- they rule more then 50% of they Coal Market in India

Although Economic Growth is Macro, it shows a strong correlation between the two.

Government has Intervened- declaring that it will be a Monopoly after signing packs.

MAXIMUM PRICE  SUBSIDIES?

ad valorem

the deflation decreased consumption and investments because people will wait for the price to decrease then buy it at a higher price

x will increase because it decreased drastically last year

decrease in supply of electricity. So electric companies are increasing the price of electricity

Losing buyers

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.