Increase in Aggregate Demand Essay Example for Free

Increase in Aggregate Demand Essay In order to address this question it is first necessary to define both inflation and aggregate demand. Aggregate Demand is the total amount demanded by the whole economy, ie it is not related to one single market. Inflation is the persistent increase in the average level of consumer prices compared to the same time the previous year. This is a natural occurrence over time as wages rise and so the quantity demanded increases, which activates the incentive price function and causes prices to rise, thus causing inflation. There are numerous types of inflationary pressure but nearly all can be subdivided into demand-pull or cost-push inflation. Demand-pull inflation is inflation caused by an extension in total demand, which is sufficiently big so that it exceeds total supply, this happens because of a huge increase in aggregate demand. As a result all factors that lead to large increases in aggregate demand can also cause demand-pull inflation. Thus, a main cause of demand-pull inflation could be a reduction in the levels of direct taxation. By reducing the level of direct taxation consumers have more real income and therefore greater disposable income to spend on goods and services, this leads to increased consumption and thus an extension in demand in all markets. Due to this extension in aggregate demand, firms will increase prices within each market leading to average price rises and inflation. Another factor which would cause demand-pull inflation would be a boost in consumer confidence such as the one which occurs when an economy reaches the recovery stage after emerging from recession. Due to the boost in consumer confidence and increasing amount of money is spent on goods and services which in turn raises the demand and thus firms increases prices, leading to inflation. Several further factors which also cause demand-pull inflation are a decrease in indirect taxation, rapid consumer borrowing in times with low interest rates and depreciation in the exchange rate. Cost-push inflation is inflation which occurs when firms increase prices in  order to maintain a profit margin. They did this because of an increase in cost productuion. For example the price of cars will be increased by firms if there is an increase in demand for and therefore and increase in the price of steel. A main cause of cost-push inflation is increasing labour costs. Labour costs may be increased by the government introducing a higher minimum wage or by a union led workforce negotiating a higher wage. Due to this increase in overall costs profits are reduced and it is necessary for firms to increase their prices to increase the amount of profit they are making so it reaches the previous level. In this case average prices will rise compared to the previous year even though there has been no increase in aggregate demand, as cost-push inflation is not linked to demand. A secondary cause of cost-push inflation is higher rates of indirect taxation which may be imposed by the government on certain products such as alcohol and tobacco or by increasing VAT. This is generally done in a free market economy to reduce the popularity of what are seen as negative goods which may harm peoples health. This happens because some firms feel that there is elastic demand for the products they supply and so pass on the increase in costs to their customers in the form of higher prices to maintain profitability. In this case aggregate demand has not grown but there has been an average price level increase. There is no doubt that inflation can be caused by an increase in aggregate demand, in the form of demand pull inflation, however cost plus inflation also exists where inflation occurs without an increase in aggregate demand and thus this view is incorrect.

The Conflict Media vs. Internet Essay -- Web Cyberspace News Essays

The Conflict Media vs. Internet Throughout our lives we learn new things and acquire new information. Many sources can give us these things to continue on with our lives. Almost all of us either wake up with the radio, listens while driving to wherever we are going, or even at work during our day. Wherever we are or wherever we are going this is a source of information. Another yet stronger more persuasive possession would be from the media. What they tell us and show us impacts our actions and what we think about. From weather to spot stories we usually believe what they are telling us as the viewer. If the weather person says it will rain the next day we will dress accordingly. Everything we are usually told or shown we take into consideration for our daily customs. All affect us one way or another in the long run. In a close yet difficult relationship between the online word and the off line world or cyber space and real time these two places can conflict as well and combine to form our society. Each one influen cing us equally. The media can influence us in both aspects. Through the television news where Internet issues are discussed and argued and also on the web where each and almost every major station has a web site. This aspect you can read it yourself with little outside influence and come up with your own conclusions. Every person on an evening news show has a personal opinion, they only reveal it when you least expect it. This rarely happens, because they are reading what the writers and reporters have written off of a TelePrompTer and adding some of their own opinion as they are talking. Most of the time we have to believe what they are saying, because they are the ones that research the topics and stories that... ...rmation in the online communities, because I would be able to have my own opinion about the particular topic I am reading about. No person on television would be able to tell me one way or another about what I should think or side myself to. I am my own person and have my own thoughts and feelings and all people should be the same way in where they can think for themselves and be their own person. A final thought, each of these two venues presented a good argument on which was better and the advantages and disadvantages towards both, yet one might always be better in one persons eyes and the other might be better in the person next to them. This gives each person a particular individuality and distinguishes them from the rest of the world. Works Cited Rory J. O'Connor. "Africa: The Unwired Continent." Richard Holeton. Singapore: McGraw Hill, 1998. 270-274.

Journal of my close friend

My Close Friend Who is that? Is that your best friend? I am sure everyone had been asked by those questions in their life. So do l. So, what it is close friend? Close friend is someone who always cheers you up in no matter what happened either in happiness or sadness. Hangout, gossiping, playing, studying, shopping, laughing, crying, and so on, all you do is together with them, your best friends. In my life, I do have a close friend. She is my sunshine. She also is my rainbow after heavy rain had passed. I laughed with her. I cried with her.She never left me, so do l. We are a best friend. Forever, I will cherish our friendship. I still remember how I met her in our first meeting. On the first day of my high school, I went to school early. When I stepped in my class, I saw someone was sleeping in the corner of my class. I got a little shocked when looking at her. For sure because I do think she might be a ghost or someone who are homeless. But somehow, I told myself to be brave, so I came near to her then I realize, she also a student, same as me. I woke her up and she is awake.She looked at me innocently with her puffy eyes. Suddenly she cried hard in front of me. I was so anxious with that unexpected scene. Did I hurt her when I woke her up? When I asked her, she told me everything. Nothing less but it was about her heartbreaking. I Just listen to her and comfort her. Although it was a little awkward since that was the first time I met her, still, I feel comfortable with her. The feeling want to be her friend were strongly linger in myself. After that, we always keep in touch and end up as a best friend. Sharing all story together.When I was in trouble, she is ready for me and I had never leave by her side when she needs me. Where is she, there is always me by her side. That is why everyone called us a twin. She is a thin girl with a sweet smile. She is so cool most of time but when something had troubled her, I easily recognized it. All of her feeling is sho wn at her beautiful face without barriers. That is why I as her only best friend will always cheer her up. I love to see her smile and her sorrow are my first thing I must vanish away. I love her, my only best friend, Siti Najihah†¦

Ask the Right College Tour Questions

College tours are excellent things. Your perky tour guide will show you all the campus landmarks, spout the important stats and answer any questions. So dont waste time asking frequently asked questions - FAQs are on the universitys website. Instead, ask questions that speak to your childs particular interests and concerns, the ones about real student experiences. Its best if your child, rather than you, puts together a list of questions that are important to him and does the asking, but if every teen on the tour is afflicted with a shyness attack, go ahead and get the ball rolling. Here are a few questions to get you started, whether youre on campus for a regular tour or Admit Day. Dont ask about average class size - its a slippery statistic that averages gargantuan lectures with tiny senior seminars. Ask your tour guide about the size of his freshman year classes.Is this a commuter college or do students hang around on the weekend? What did your tour guide do last weekend? And the weekend before that? How often do he and his friends go home?Whats the best class or most inspiring professor your tour guide ever had? Why? How well does he know his professors, and how did that happen?Whats the most impossible class to get into on campus? Why? Is it because the class and the professor are so darn wonderful, or because its difficult to get the classes your child will need? Does that vary by major?Who helps your child choose classes? Does he have the same faculty adviser for all four years? Or does a peer adviser - a sophomore or junior, for example - help him register the first time and then hes on his own?What are the general education requirements - the GEs requir ed for graduation? For some reason, tour guides think GEs are the same on every campus. They are most emphatically not. Some schools require five humanities, five lab science, and three math classes, beginning with calculus. Others require one of each, plus a world religions class. The differences can be a deal breaker for your child.Why did your tour guide pick this school? What other schools did he consider? What does he wish hed known then that he knows now?What are the biggest campus traditions? Does everyone go to the football or basketball games?What percentage of students go Greek? Are the fraternities and sororities residential or social only? When is rush and what’s it like?How difficult is it to find housing? On some campuses, frats and sororities are a big deal because its so difficult to get into the dorms. Did your tour guide live in a dorm freshman year? Which one? Which one does he like best?What was the most difficult thing to get used to here? (A University o f Puget Sound guide admitted it was the grey, drizzly weather, then rallied valiantly to say, â€Å"But it makes the sunny days seem all the sunnier!† Weather is a huge issue for many students.)Where does your tour guide study - in his room, the library, another favorite spot? How many hours a day does he study?Whats the favored campus hangout? How about off-campus (best pizza, coffee house, etc.)?If your child has health issues, youll want to ask questions about those concerns, of course. But everyone needs to ask what happens if a student has appendicitis or another health emergency - is there a hospital on campus or does campus security take you to a nearby hospital?Ask about academic support. Every campus has facilities to help students with learning disabilities, but most have tutoring help for anyone who needs it. What form does that take? Peer tutors or faculty support? Math and writing learning centers staffed 24/7? No matter how brilliant your child was in high schoo l, he may be unhappily surprised by the higher expectations of college professors.Ask about the college career center and internship opportunities – and don’t be fooled by â€Å"the college encourages†¦Ã¢â‚¬  answers. Internships are an essential, often overlooked way to test drive career paths and start building a resume long before graduation. Some schools have extensive internship opportunities. Some even require a certain number of internship hours. Others post opportunities in their career center but dont particularly solicit them.Ask about study abroad opportunities too. Nearly every college has some sort of international study program, but some majors are not conducive to study abroad - not if you want your child to graduate in four years, anyway. Some schools run their own satellite campus in a foreign country, so your child would be studying with University of Redlands faculty, for example, in Salzburg. Others tap into foreign university programs. (Do n ot be impressed by promises that a year abroad will cost no more than a regular year at your expensive private school or that the college will apply your scholarship to those months. All private colleges say that. State schools simply charge you whatever the international program charges. Hint: its not $45,000.)