Post#6
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Title:
Summary:
Evaluation:
Graphs:
Post#5
URL:http://www.marketwatch.com/story/shale-gas-opens-door-to-us-lng-exports-2011-12-05?dist=afterbell
Title: Europe: The worst-case scenarios Shale gas opens door to U.S. LNG exports
Summary:
In the US,which lacked gas and was importing it in huge amounts, just recently invtented a technology that lets them free the gas from rocks. This sudden invention shifts the supply to the right, but thats not the main topic in the article.
Evaluation: The main idea of the article tried to emphasize the option to export gas rather than import. This would be kind of tough for the US, sice they don't have any infrastructure. But this would increase some employement - some people could work for the companies working with gases - the workers. Also, the countries GDP would increase.
Graphs: graph 1 - GDP increase
graph 2 - demand for workers
3 - a tariff on the gas import from other countries
4 - change in the price of gas after getting gas from previously inaccesible areas.
Post#4
URL:http://money.cnn.com/2011/11/05/news/international/greece_default/index.htm?&hpt=hp_c2
Title: Europe: The worst-case scenarios
Summary: Greece might not approve its bailout - as presented by the prime minister of Greece.
Evaluation: The author of the article offers as an option his solution where "people work longer hours and raise taxes," which could solve its problems with cuts. The aggregate demand and aggregate supply would decrease though. If the taxes would go up and if the people's confidence went down, the economy of the whole country could be pretty hazy in future - already both AD and AS would decrease. This could also lead to a crisis with protest.If people who are used to more money for less working would suddenly experience such a dramatic change, their mentality might cause some problems. This would not have any positive effect on the economy as well. Possible protests would cost the governemnt more money.Opportunity cost question arises.
Graphs: Graph 1 - AD - decrease and AS -decrease
Graph 2 - direct and indirect possible tax changes
Graph 3 - supply of workers after some change in indicators of Supply.
Post#3
URL:http://money.cnn.com/2011/11/05/news/international/greece_default/index.htm?&hpt=hp_c2
Title: Europe: The worst-case scenarios
Summary:
Greece might not approve its bailout - said by the prime minister of Greece.
Evaluation:
Graphs:
Post#2
URL:http://www.forbes.com/sites/janetnovack/2011/04/08/how-to-take-a-tax-write-off-for-a-new-porsche-bmw-or-cadillac/
Title: How To Take A 100% Tax Write-Off For A New Porsche, BMW or Cadillac
Summary:
This article informs us about the recent tax cut for exclusive SUVs over 60 000 pounds. This should encourage the buyers to spend more and also buy more exclusive products. I suppose that the taxcuts are designed to save the businesses that provide exclusive products. These companies would probably suffer during recession.
Evaluation:
Not mamy companies and individuals are able and willing to purchase such items when the attitude of probably each business is to save money and make cuts to budgets. The people who work for companies that produce these kind of products might lose their jobs if there is no demand for such items, which could potentially launch the cyclical unemployment case. This would hurt the economy as a whole even more during the recession. By this kind of "subsidizing" the government gives up the opportunity cost of something else, because the tax is now not collected and therefore could not be used somewhere else.
Graphs:
Graph 1 - demand after tax cuts
Graph 2 - Demand for workers without tax cuts
Post#1
URL: http://www.bloomberg.com/news/2011-10-03/ism-index-of-u-s-manufacturing-increased-to-51-6-in-september.html
Title:U.S. Manufacturing Unexpectedly Accelerates as Export Demand Spurs Output
Summary
In this article the author uses data to show how the us economy is better than predicted, which affects more curves in economy. the demand for workers in manufacturing industry will be increased and the unemployment should be decreased. This benefits both - government and the people that now have a job.
Evaluation
European economy is falling because of the falling euro value. Supposedly , Europe is close to a recession, caused by the European union's debt and greece's instability.
The increased economic activity in the us is caused by the rise in demand for capital goods such as computers, but country's economy is mainly increased by the higher demand from other countries. Us has now better exports,which cause more income in country s economy. Also new workers inside of the us are hired, increasing it's GDP. Some analytics predict that this growth might increase even more.
Relevant graphs:
Graph 1 - demand supply for workers
Graph 2 - euro depreciation ( possibly better for exports)
