IBEconomics

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

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

China controls everything

negative consumption externalities  (benefit-cost curve) 

Increase in FoP

Inward shift in supply 

Negative Production Externality - tax Market failure 

Increase in price, tax put on consumer 

decrease in demand

substitute goods

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. 

movement on the demand function

loss = bad 

increase in unemployment

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.

As well as drawing the season unemployment graph, an explanation as to how seasonal unemployment is caused can be described. The causes of seasonal unemployment needs to be related to the increase in unemployment rate in USA between last Winter and May. 

A graph indicating the consequences of decrease in consumer confidence and how it shifts AD to the left can be shown through a graph. Increase in demand for a higher price of unemployment benefits can be drawn on a graph illustrating the impact on GDP. A brief explanation of consumer confidence and the basic components of GDP should be mentioned and explained. 

The significance of unemployment rate is clearly indicated, such as the the impact on Obama's re-election. 

Unemployment raises when there is more demand for working because no matter whether there is an increase or decrease in the working labour force, the number of available jobs are limited. Because there is a limited number in the number of jobs, the increase in demand for employment raises the unemployment rate. 

The word 'recession' can used to introduce the Keynesian economics with the boom and the busts cycles and monetary and fiscal policies to reduce these cycles. 

This indicates the influence of America's unemployment rate as well as their economic growth to the other major countries, such as China and India. A increase in America's unemployment rate resulting in a decrease in America's GDP growth has affect on the economy of China and India, such as in exporting goods. 

The decrease in the prices of government bonds in Germany and United States indicates that the citizens dont have the trust to these countries for their skill to return the money with a fixed amount of tax. This is also another indication for the economy not doing well. 

The main factor of decrease in America's GDP is stated as the overall decrease in the demand for goods since many economies are not successful. 

Europe can be noted as one of the important continents which greatly affect the global economy. 

Whether a company has a diverse target audience or not can be a indicator to determine the impacts of global slow down in markets. 

A graph illustrating a global decrease in demand can be applied to draw the consequences of decrease in GDP. 

The economic policies which President Obama used can be described thoroughly in this section, such as fiscal and monetary and their success. 

Both the positives and the negatives of America's economy can be explained more in depth and the impact of each factor to the market.