Group items tagged

(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?  

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

graph showing the increase in consumer prices 

the effect of setting a 4% inflation (?) --> graph and show

the reason why (?)

giving reasons to it why their economy is slowing down 

point this in the graph 

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. 

This investment will increase the GDP of the market

This shows the impact of R&D on the efficiency

The money put in R&D for chivas brothers has been consistently using the same amount of money over the past few years to develop their product

If Carbon becomes more expensive, this reduces the number of firms which still can afford the price and therefore leads to reducing the amount of Carbon. 

Recession, the business cycle suggested by Keynes can be introduced with a digram and explanation. 

A diagram representing the impact of minimum price should be drawn and explained. Consumer burden needs to be explained as well. 

This can be explained to support why when an economy is in recession, it has a similar impact as minimum price has. In addition, this also has a negative affect on the government who has the benefit of minimum price since then they are able to collect the money. Therefore this reduces the intention of the government to set a minimum price since they would have less benefit when the economy is in a recession. 

increase by 2%

food prices went up due to inflation. it rose 3.4%. the products are getting more expensive. 

-What is TV Revenue? -How would subsidising the tickets lead to solving this problem?

(Can also use the values)

Can talk about why it is that certain teams are more expensive to watch

Losing buyers

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