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

    and then sums them up to obtain the total value of output produced. It measures the value of all final goods and services, in order to avoid the double counting that would arise from including the values of intermediate goods and services.

  2. IB Macroeconomics Commentary

    For job-seekers and consumers, that means a lot more bad news, he said. "The fallout is far from over when viewed through the prism of job loss rates and income growth." Nationally, more than 6 million jobs have been lost thus far in this downturn.

  1. Economics Coursework on Macroeconomics

    One way to do this shift is that increase the net export, but the Mexican tariff limits and decreases the export could be delivered to Mexico. This tariff does not help with the American economic recovery and decreasing export rate and smaller revenue of the business could lead to firing

  2. What is the impact of the Notional Interest Tax Deduction system on investments in ...

    The road density and port infrastructure make transport easy and reliable. Antwerp has one of the largest ports in the world and along with the reliable air transport, suggests that the transport from Belgium to countries worldwide is very easy.

  1. What is Economics? What do Economists do?

    � Note: our key point here is that given scarcity, any choice involves an opportunity cost. � Economists argue that people are rational self interest they make the best possible choice (give the greatest satisfaction), given the information they have.

  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)

    This means that the BCL cannot influence the economic position immediately. Luxembourg- Recent Patterns of and Domestic Production and Trade Luxembourg has continued to be at the forefront of the global financial market and consequently the finance industry has become one of its largest domestic sectors.

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

    There are also mental and emotional problems that could develop within the unemployed, such as high levels of stress and depression. The social costs of unemployment are mainly seen in areas of high unemployment, where there are higher levels of poverty, homelessness and crime compared to areas with lower unemployment rates.

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