This means a company can produce more products at a cheaper price, saving money as well as making it. ... Also net exports would increase as there is a trade surplus which proves the efficiency of production. ... Interest rates can be defined two ways; the cost of borrowing money and the reward for saving it. ... This high interest rate will decrease aggregate demand due to a lack of money being pumped into the economy. Low interest rates increase investment, except from when in a recession, the low interest rates form a "paradigm of thrift" where consumers are scared of the future and therefo...

• Word Count: 817
• Approx Pages: 3
• Grade Level: Undergraduate

According to the definition it can be inferred that an increase in supply of currency/money is the cause, which tells us that the central bank of a nation is printing more money as a result of government spending. ... On the other hand an increase in demand is mainly caused by increase in government expenditure, increase in private expenditure, increase in consumer spending as a results of modern-day credit purchases, reduction in taxes, governments repaying their debts, increase in population, as well as deficit financing. ... Greater utilization would increase supply as a whole too. The bas...

• Word Count: 987
• Approx Pages: 4
• Grade Level: Undergraduate

However the statement is correct in that from 1980 to 1990 the number of deaths increased for unemployed manual workers, they increased from 900 in 1980 to 1050 in 1990. ... However in source B we are told by the Health Pressure Group that the extra money invested simply does not cover the growing needs and expenses of the NHS. ... The 3% increase of £2 billion does not cover or take into account these facts. ... However again contrasting this view, the Health Pressure group claims that a massive 90% of the public want more money spent on healthcare even if it means taxes being incre...

• Word Count: 838
• Approx Pages: 3
• Grade Level: High School

Throughout the nation, unemployment is low, there is an increase in the output of goods and service, and consumer spending is high. ... Eventually, the gross domestic product will slowly increase, and this shift in the economic cycle leads to a period called recovery. 2 Recovery is the period of renewed economic growth, and is characterized by reduced unemployment, increased consumer spending, and businesses expanding. During this stage, businesses pick up, people find jobs, the poverty level goes down, and the demand for goods increases. ... If the economy didn'...

• Word Count: 346
• Approx Pages: 1
• Grade Level: High School

In 1936, John Maynard Keynes published The Theory of Employment, Interest, and Money. ... John Maynard Keynes suggested that the government should jolt the economy by increasing the aggregate demand. ... He believed the government should increase spending to help the economy and once the economy started to become table again the government would pull away. ... The government spends money in the economy today anyway, so it would be convenient for the government to increase spending when needed. ...

• Word Count: 338
• Approx Pages: 1
• Grade Level: Undergraduate

b) The government cuts spending on infrastructure: changes in the injections, results to a reduction in aggregate demand. c) Firms borrow more money to expand their production facilities as they anticipate an increase in consumer demand: changes in the injections, results to an increase in aggregate demand. ... So the scenario, in which consumer confidence is increased, will lead to higher consumption and an increase in aggregate demand. The graph of AD will shift the right: c) Interest Rates Have Decreased Decreasing interest rates will mean that consumers will tend to take up more loans an...

• Word Count: 677
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An increase would help the economic recovery and by raising the minimum wage people would spend more money and decrease our debt. ... The first reason is it would help increase families income. ... By the wage going up more Americans have more money to send on their wants and that helps boost the economy. ... It would also increase the Growth Domestic Product. ... After looking at the three counter arguments of increasing the minimum wage and looking at the downfall of an increase. ...

• Word Count: 1112
• Approx Pages: 4
• Has Bibliography
• Grade Level: High School

Inflation coupled with the recent decrease in interest rate will help to stimulate the economy because of the increase circulation of money in the economy. The increase money circulation will consequently increase consumer spending and investment. ... Although the second quarter saw a measly 1.7% increase, the third quarter bounced back with a 3.1% increase in GDP, a an increase of 1.8%. ... Many economists believe that the increase in GDP was mainly the result of increased consumer spending. ... Increased spending on durable goods increased by a whopping 22.7%. ...

• Word Count: 813
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When the cost of production increases aggregate supply decreases, thus reducing overall GDP. ... Their argument is that our nations GDP will increase by a larger magnitude when the poorest that can't save have more money. By increasing wages, you increase consumption. And the increased structural unemployment created by machines replacing workers will be offset by the increased demand spurred by this newly found wealth. ... By raising the minimum wage, the workers will then continue to spend money in our economy which as a result will help our economy grow. ...

• Word Count: 878
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• Has Bibliography
• Grade Level: High School

For example, an increase in demand for Aus exports from china has been recently occurring with a 55% jump in demand for iron ore, will increase demand for the AUD and cause an appreciation. This is best shown through an increase in demand on a diagram. [SD graph of AUD showing an increase in demand] As seen on this diagram, the price of the $A has increased due to the sharp rise in demand for exports. ... This is because investors would move their money from Australia into neighbouring countries, an event deemed as capital flight This would increase supply and reduce demand for the AUD causi...

• Word Count: 1109
• Approx Pages: 4
• Grade Level: Undergraduate

I still remember the first problem to the assignment -will all the rebuilding and aid money increase GDP- that I think two sides are balanced. ... After earthquake which means the increasing of unemployment, devastating of infrastructure, the action of increasing aid money can increase GDP compared with the immediate GDP after the earthquake. However, compared with the GDP before earthquake, the GDP have no ability to increase as high as before. ...

• Word Count: 557
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• Grade Level: High School

Besides, boosting the expenditure of the government injects money into the economy and this translates into increased aggregate demand. On the other hand, monetary policy involves the cutting down of interest rates in the aim of increasing consumer expenditure and investment. ... Granted, these corporations are not to blame because their primary objective in business is to make a profit and putting their money in an economy where the risk of losing it is high would be self-defeating (Ferran et al., 2012). Commercial Banks During the implementation of an economic stimulus program, governments...

• Word Count: 629
• Approx Pages: 3
• Has Bibliography
• Grade Level: Undergraduate

Besides, boosting the expenditure of the government injects money into the economy and this translates into increased aggregate demand. On the other hand, monetary policy involves the cutting down of interest rates in the aim of increasing consumer expenditure and investment. ... Granted, these corporations are not to blame because their primary objective in business is to make a profit and putting their money in an economy where the risk of losing it is high would be self-defeating (Ferran et al., 2012). Commercial Banks During the implementation of an economic stimulus program, governments...

• Word Count: 629
• Approx Pages: 3
• Has Bibliography
• Grade Level: Undergraduate

This can have a beneficial effect on growth, for various reasons: The poor can increase their levels of savings. ... Greater equality increases levels of consumption. ... As a result, income redistribution can increase economic growth if it is effectively carried out without inefficiency. ... If greater equality is achieved, it may increase the consumption of domestically produced goods, vs. imports. ... The idea popularly called 'trickle-down economics' suggests that more money at the 'top' will benefit everyone. ...

• Word Count: 527
• Approx Pages: 2
• Grade Level: Undergraduate

TAL also argues that, when a definition of poverty using an increasing threshold is used, there has still been no statistically remarkable trickle down effect in the post 1963 period for any demographic group. ... Once the lower end of the income distribution is not uniformly distributed, even a constant trickle down effect, which brings about equal dollar increases in all family incomes, would lift only fewer and fewer families above the poverty line. ... An absolute analysis of trickle down from which policy implications can be drawn requires time-series data on both money and non-money tr...

• Word Count: 523
• Approx Pages: 2
• Grade Level: Undergraduate

e.g If the government needed to cut unemployment they would budget for a deficit so more money is injected and less money is taken from the economy by less taxes and higher expenditure raising employment. ... It controls the availability of money by influencing the level of interest rates. ... By lowering interest rates the government encourages spending thus increasing the level of economic activity. ...

• Word Count: 425
• Approx Pages: 2
• Grade Level: High School

Many students find them selves as graduates without a job in the field they studied, and owning lots of money. ... Also, instead of decreasing poverty it actually increases it (The New York Times, 2014). ... It will increase due to the fact that FLSA and other state regulations will make it more costly for businesses to hire workers. ... There must be laws that are passed, and are time consuming as well as money for citizens. ... This money would come from income tax money. ...

• Word Count: 986
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• Has Bibliography
• Grade Level: High School

Smith points out the mutual benefit to city dwellers and farmers of trading manufactured goods for produce or money for either and other detailed examples of the mechanisms of capitalism in his 1778 work The Wealth of Nations. ... He was largely ignored by scholars in his lifetime, but after his death his influence increased with the growth of the labour movement. ... John Maynard Keynes is best known for his classic book The General Theory of Employment, Interest, and Money that was published in 1936. ... He insisted that direct government intervention was necessary to increase total spend...

• Word Count: 684
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• Grade Level: Undergraduate

believe in measures which increase the incentive to work and to produce goods and services. ... As a result of increased productivity, worker's wages will begin to increase. ... At a high tax rate less people will be willing to produce goods and services, but at a lower tax rate, incentives to produce are increased.1 Supply siders believe that this methodology of cutting income taxes will increase overall government revenues in the long run through the increased spending by the consumer. ... This industrial boost increases not only the growth of the economy, but consumer sov...

• Word Count: 829
• Approx Pages: 3
• Grade Level: High School

This had the effect of increasing unemployment and further reducing business. Workers started to get laid off, got less bonuses and overtime, and so began to spend less money. ... According to Keynesian thought, you can combat this problem by running a budget deficit by increasing government expenditures in excess of current tax receipts. The increase in government expenditures should be sufficient to cause the aggregate demand curve to shift to the right from (AD1) to (AD2), restoring the economy to the natural level of real GDP. This increase in government expenditures doesn't have t...

• Word Count: 714
• Approx Pages: 3
• Grade Level: Undergraduate

Indonesia was streamlining its budget by 1982, spending the newly saved money on education (25). ... There was a 12% increase in fuel consumption from 81' to 82', which has persisted as a yearly trend (25). This high level of increase is not sustainable, especially from a country in which 70% of budgetary revenues are from exports of oil and gas (25). ... Suharto gave government money and assets to his children. ... If they had made it easier to invest, the value of the rupiah, as well as their stocks, would have risen, and earned them an exponential amount of money. ...

• Word Count: 1091
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• Has Bibliography
• Grade Level: Undergraduate

Indonesia was streamlining its budget by 1982, spending the newly saved money on education (25). ... There was a 12% increase in fuel consumption from 81' to 82', which has persisted as a yearly trend (25). This high level of increase is not sustainable, especially from a country in which 70% of budgetary revenues are from exports of oil and gas (25). ... Suharto gave government money and assets to his children. ... If they had made it easier to invest, the value of the rupiah, as well as their stocks, would have risen, and earned them an exponential amount of money. ...

• Word Count: 1091
• Approx Pages: 4
• Has Bibliography
• Grade Level: Undergraduate

The government intends to do this through, reduction in government spending, such as, savings from welfare reforms and increases in taxation, e.g. the increase in VAT to 20 percent in January 2011 (Williamson, 2010)[4]. ... Due to the recession which began in 2008, the Government's income dropped, but Government spending continued to increase. ... This is the amount of additional money the Government had to borrow to be able to pay for its spending on governmental activities last year. Macroeconomics The UK Government is pinning its hopes in the growth of the British economy, to help i...

• Word Count: 717
• Approx Pages: 3
• Has Bibliography
• Grade Level: High School

The reason is to avoid the speculative activity by demonic money speculator as well as to bring back its normal value. ... Mahathtir also tries to encourage the public to save their money while spending. ... Therefore the money can be used to help our economy. ... But now, we will create a new market in 3rd world and developing countries such as Africa and Eastern Europe due to the increase in purchasing power and the change of the regime. ... The rationale of this step is to encourage people to spend their money locally and ...

• Word Count: 1144
• Approx Pages: 5
• Grade Level: High School

The government would run fiscal deficits because of irresponsible spending and low tax revenues from the poor economy, and to fix this problem would print new money, resulting in variable rates of inflation. ... Forced to choose between a reduction in government spending and an increase in taxes, the government chose to raise taxes. ...

• Word Count: 728
• Approx Pages: 3
• Grade Level: Undergraduate