• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

IB SL Economics Commentary: Macroeconomics

Extracts from this document...

Introduction

IB Economics: Internal Assessment Front Cover Name: Candidate Number: 310187471 Teacher: Mr. Messere Source of Article: The Toronto Star: Title of Article: Booming GDP beats forecasts, http://www.thestar.com/business/article/773531--booming-gdp-beats-forecasts Date Written: March 5, 2010 Word Count: 726 Areas of Syllabus your commentary relates to: Section 4: Macroeconomics Having experienced contraction from Q4 08 to Q2 09, the Canadian economy grew 5% in the fourth quarter of 2009, beating predicted forecasts. This growth was precipitated by consumer and government spending, as well as a growing housing market. There was also growth recorded in exports, with sectors such as the automotive, energy and industrial factoring into this. However, economists warn that for this growth to continue, issues such as unemployment and spotty aggregate demand must be addressed. Fiscal measures, meaning decisions made by the central governing body concerning taxation and government spending, have already been taken by the Canadian government, in the form of the fiscal stimulus package. ...read more.

Middle

to AD1 (l). There mismatch in skills offered by Canadian workers and those demanded by firms has decreased on the diagram, perhaps through training programs. On the other hand, an increase in aggregate demand, caused by an increase in the disposable income of families may have also caused the increase in demand for labour as firms expanded or rehired laid off personnel. Price stability is also important for long term economic growth, because rampant inflation, meaning a steady and prolonged increase in the price level, is known to have several adverse effects. These include the extra costs caused by unsteady resource costs, and money losing its role as a medium of value. As the government injects more stimuli into the economy, the risk of demand pull inflation grows. Thus aggregate demand would rise; because of growth in the money supply, the price level would increase, as described by the short run equation of exchange, M=P. ...read more.

Conclusion

Additionally, the retraining programs are unlikely to have already decreased structural unemployment, as one of their major faults is the length of time needed to complete such a course. These so called time lags are problematic because once the retrained populace makes their way back into the labour market, 3-4 years may have passed, almost a full cycle of certain economies. As stated in the article, the Canadian recovery itself does not stand on stable ground, especially so given that a significant part of the EU is heavily in debt and America no yet out of its own recession, important, as 80% of Canadian imports are destined there. Whether or not the measures taken by the government with respect to stimulating the Canadian economy in the long run shall be successful remains to be seen. However, the average middle class citizen most likely has experienced the benefits of measures ranging from tax credits and reductions to funding directed to the industry they work in. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. Economics Coursework on Macroeconomics

    The American producers supply the rest which is now Q3-Q4. They now receive higher price, but smaller quantity, their revenue falls.

  2. What is Economics? What do Economists do?

    � Thus, economic agents (firms, households, and governments) choose an action only if the benefits from the action are greater than the costs from the action. � More precisely, these agents make their choices at the margin. That is they choose an action only if the marginal benefit (MB)

  1. Growth and Development Problem Set - IB Economics exam questions and answers.

    from higher income to lower income groups; with regressive taxation, inequalities become more pronounced, with serious consequences for both growth and development efforts. Property rights refer to the laws and regulations that define rights to ownership, use and transfer of property.

  2. Old IB Questions

    surplus due to a higher price and lower quantity. The presence of deadweight loss in monopoly indicates that there is economic inefficiency: the sum of consumer plus producer surplus is less in monopoly compared to perfect competition by the amount of deadweight loss.

  1. The luxembourg Economy (Complete Review)

    Over 25% of the employed population in Luxembourg have a role within the financial sector which is believed to significantly contributed to the nations impressive GDP. Despite Luxembourg's present reliance on the finance market, in previous decades Luxembourg's production and exports were predominantly derived from resources and minerals like steel and aluminium.

  2. IB Macroeconomics Commentary

    Job growth typically does not start until recession ends and the economy starts to expand. The weaker the expansion, the longer it may take for hiring to kick in and unemployment to fall. After the end of the 2001 recession, for example, job growth did not start for more than a year.

  1. Equal rights for women in labour market in Lithuania

    Such stereotypical view also leads to women choosing "feminine" professions, which are less paid, as they would not want to feel ignored, undermined or pressured.29 Women who choose "masculine" professions are often not seen as professionals: women in a collective of men will most often be seen as a composition

  2. The low-wage jobs explosion - Macroeconomics IA Commentary

    What income they do receive most likely comes in the form of unemployment benefits. A reduced income will probably result in a lower standard of living for not only those who are unemployed, but also for their families as well.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work