eco assignment part 7,8,9 -...

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Institute of Directors (IOD) latest survey shows clear signs of optimism for the future of the economy.  UK productivity levels at their highest level for 10 years.  Government 'stealth taxes' increase tax burden to highest level for 50 years.  7. In economics the main thing needed is the best hope for the future conditions of a country . When there is a certainty of best possible outcome in the country (economy), all the rates will be assumed to slow moving. More and more people from the abroad and within the country will invest more and more. With increase in investment there will be an increase in AE hence an increase in Y. Decrease in planned investment cause increase in Aggregate expenditure and increase in Income. Also interest rates fall due to increase in investment which shows that inflation rises as well. Since interest rates are inversely proportional to the inflation rate. 8. A rise in any component of aggregate spending has a larger effect on equilibrium income.
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This note was uploaded on 05/21/2011 for the course MARKETING 104 taught by Professor Fazli during the Spring '11 term at College of E&ME, NUST.

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eco assignment part 7,8,9 -...

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