Economic Concept
The first economic concepts that exhibited in the article is GST will affect the aggregate demand and aggregate supply (AD-AS) model. From the articles, we know that GST taxes are applied only on the consumption component while the savings and investment are not taxed. This will encourage consumers to save more while the business to invest more in productive activities. Consumer spending is a major component of aggregate demand(AD) and economic growth(Y). If consumer increase in saving, it will reduce the rate of economic growth. Diagram A
When the consumption in the market decreases, the aggregate demand curve will shift to left, from AD1 to AD2. It will form a short run equilibrium at point B. At point B, the country’s
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This may shift the long run average supply curve to the right, from LRAS1 to LRAS2 (Refer to Diagram B). Moreover, the increase in investment will also cause a rise in output and profit, which indirectly increase the competitiveness of a business. The high profit of a business will increase their workers’ pays to encourage the high level of work contributions. This allow people to gain more income. Thus, people are more willing to spend their incomes on more goods and services. With strong multiplier effect, aggregate demand may have a bigger increase and aggregate demand curve may shift to right in the long term (Pettinger, T., n.d.). (Refer to Diagram C).
The Royal Malaysian Customs Department has divided the taxable supplies into 4 groups, which are standard-rated supplies, zero-rated supplies, exempt supplies and out of scope supplies. Although zero-rated supplies subjected to zero percent of GST charging but the demand of the good and services will not increase or decrease correspondingly with a fall or rise in its price. This is because most of the zero-rated supplies such as fresh fruit, rice, salt and vegetables are inelastic demand (Good and Services Tax (Relief),
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Based on Diagram F above, it shows that the aggregate supply curve shifting rightward from AS1 to AS2, which causes the price level to increase from P1 to P2 and the RGDP to decrease from Y1 to Y2. The change of movement from the original equilibrium to the new equilibrium brings lots of effects to the economy. For example, the decrease in GDP causes a recession of economy to occur. This would also lead to the high unemployment rate which cause by the inflationary higher price level as the economy is now further away from natural rate of output. Besides that, the introduction of GST in Malaysia will enhance global competitiveness of exported goods and services. This is due to no GST is imposed on exported goods and services (Ng, Tuam, & Dr Aik, 2014). Subsequently, the price of the export good will become cheaper. So as the result, GST implementation that enhance global competitiveness of exported goods and services will shift the aggregate demand (AD) curve to
If at all possible, the organizations investments will start to give them economies of scale or additional savings over the years (Nourse,
The Federal Reserve Act of 1913 gave the Federal Reserve the responsibility for setting monetary policies. The term refers to action taken by a central bank to influence the availability and cost of money and credit to help promote national economic goals, according the Federal Reserve website. This Act also helped to create a unified national money system and permitted mortgage loans. Mortgage loans were new at this time. Now, what is the Federal Open-Market Committee (FOMC)?
When prices rise, consumers often move to cheaper, less-nutritious foods, increasing the risks of micronutrient defects and other forms of malnutrition, which can have long-term unfavorable effects on people’s health, development and productivity. Hunger
Furthermore, the diagram illustrates how the public is finding occupations to fill. This decline in unemployment is quite effective mainly due to the fact that more citizens will have money to spend contributing to the airing of the economy. Now that individuals are working, they are becoming consumers in which supply and demand will soon become into effect. This would lead to more jobs being created in order to support the demand for
Organizations will be more Induce to expand and take risks when economic conditions are right, low interest rates and increase demand.
As a result of this, the manufacturers of this product may ask a higher price for their rice and the GNP per capita in Vietnam
Price and demand of an item is significant viewpoint which must be considered by Toyota in promoting economy as price and demand impact purchaser what to purchase. Customer’s demands all the more in lower price and less at higher price. Price elasticity of demand is a measure of the greatness by which customers modify the amount of some item that they buy in light of progress in the price of that item Boyes and Melvin (2012). Price elasticity of demand will help Toyota to decide the amount an
In the contemporary society, there are an increasing number of people involved in the globalisation. I choose the topic of international trade. And in the following paragraphs, I am going to introduce what is international trade, other possible benefits of trading globally and the bottom line. (Heakal 2015) Thanks to the international trade that allows us to expand the market for goods and services.
Then if the people get more money that also may raise the GDP. __ Reasoning (explain what the above textual evidence means & how it supports your claim) __ The reason that I used this piece of evidence is because it gives more reasons on how the people are getting more money back due to the fact of not having as many
Social Isolation and Loneliness Social isolation has become much more common in a society that constantly tries to stereotype us. The poems, “A Supermarket in California,” by Allen Ginsberg and “The Love Song of J. Alfred Prufrock,” by T.S. Eliot, display the way that loneliness is affecting people. In “A Supermarket in California” imagery is used heavily, while with “The Love Song of J. Alfred Prufrock,” relies on personification to show the loneliness of isolation. Both poems use objects such as the lonely streets and night time to make the reader feel the isolation.
On the other hand, inflation rates have a negative effect on the growth of the advertising industry. Inflation rates affect the prices of goods and services which also affects the purchasing power. If the purchasing power of the consumers decline, manufacturing industries will experience low returns. They will shift the burden to the advertising industry by reducing investment in the industry and therefore affecting growth. The other economic factors also affect growth in one way or another (FME, 2013).
Along these lines, unemployment may decrease, as this has different favorable circumstances, for example, lower government using on profits and less social issues. However, this phenomenon includes a number of different expenses. Firstly, if economic growth is unsustainable and is higher than the long run pattern rate, inflations are liable to be seen. An increase in economic growth could prompt an equalization of issued installments. In case the expanded customer expenditure causes further development, there will be an increase in the import sector.
Introduction to Budgets and Preparing the Master Budget Budgets and the Organization Many people associate the word budget primarily with limitations on spending. For example, management often gives each unit in an organization a spending budget and then expects them to slay within the limits prescribed by the budget. However, budgeting can play a much more important role than simply limiting spending. Budgeting moves planning to the forefront of the manager's mind. Well-managed organizations make budgeting an integral part of the formulation and execution of their strategy.
Thus, it will boost the economic status of the country as well as to increase the Gross Domestic Product of the