Supply And Demand And Aggregate Supply Curve.

Supply and Demand and Aggregate Supply Curve.
Entorno Económico de la Empresa
Tarea 5
1. The following events have occurred at times in the history of the United States: * A deep
recession hits the world economy. * The world oil price rises sharply. * U.S. businesses expect
future profits to fall.
a. Explain for each event whether it changes short–run aggregate supply, long–run aggregate supply,
aggregate demand, or some combination of them.
A deep recession in the world economy decreases aggregate demand. A sharp rise in oil prices
decreases short–run aggregate supply. The expectation of lower future profits decreases investment
and decreases aggregate demand.
b. Explain the separate effects of each event on U.S. real GDP and the price level, starting from a ...
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d. Describe two events could have changed aggregate supply from SAS0 to SAS1.
Short–run aggregate supply decreases if the money wage rate rises or the money price of any other
factor of production, such as oil rises.
4. It's a Recession–75 Percent of Americans Say In a telephone poll of over 1,000 adult Americans,
75 percent said they believe the nation is now in a recession ... "From a consumers' perspective, the
economy is bad, and the environment is going to be tough for a while," said Wachovia economist
Mark Vitner ... Though growth was sluggish in the last quarter of 2007 and the first quarter of 2008,
the U.S. economy has not yet shown retraction in the current slowdown. ... "Whether the economy
technically meets the definition of a recession matters more for economists and policy makers than
it does for consumers," said Vitner. ... Of those who think the economy is in a recession, 27 percent
said they believe we are in a serious recession. ... Americans are less confident in the future of the
economy than they were in March. The poll showed that 23 percent believe the downturn will last
more than two years, up from 19 percent in March...
CNN, July 7, 2008
a. Explain the effects of a decrease in consumer confidence on the short–run macroeconomic
equilibrium and draw a graph to illustrate the effects.
When consumers
... Get more on HelpWriting.net ...

The Economic Effects Of Stagflation In The 1970's
In the 1970s, the United States suffered an economic phenomenon that resulted in heightened
unemployment, inflation, and a recession. President Richard M. Nixon was in office for majority of
the decade, the economy was in turmoil, and the citizens were feeling less united. The recession at
the beginning of the decade, mid–way through Nixon's first presidential term, paved the way for the
economic devastation to come. A third of the way through the decade, was the result of the worst
combination of disasters for any economy to date. The most notorious White House scandal and an
attempt to regain control of the market topped the most remembered list of the 1970s, followed by
another recession. The 1970's is a decade for the record books.
Stagflation is generally defined as stagnant, or slowed, economic growth and relatively high
unemployment with an outrageous rise in prices, or inflation; or as inflation with a decline in Gross
Domestic Product (GDP). Between 1973 and 1981, the United States experienced a significant case
of stagflation. Early 1970s, a dispute between Israel and neighboring Egypt and Syria created
tension, and the Middle Eastern Arab states assisted Israel which in turn hiked oil prices and put a
stop to oil exports to the United States, oil prices skyrocketed globally. In 1973, American gas
stations either limited the amount or ran out of fuel for consumers. The same thing happened again
in 1979 due to the overthrowing of the Shah of Iran. Natural resources

Rise Of Conservatism In The United States
Conservatism is a set of principles that focus on traditional values and moderation. It was a political
idea that arose out of international and domestic conflicts that the U.S went through in the 1970s.
However, it did not start to fully become prominent until the 1980s with the election of Ronald
Reagan. The combination of stagflation, a sequence of failures overseas, and the aftermath of
Richard Nixon's presidency; all led to a rise in "a widespread sense of anxiety among Americans and
offered conservatives new political opportunities" (Foner, Give Me Liberty, 1041).
Starting with the foundations of conservatism; a lot of the events that happened in the 1960s such as
the civil rights movements, alignment of Christians with republicans, ... Show more content on
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These events were leading to a severe distrust in government. The American People opposed the
Vietnam War; they protested numerous time at home because they did not want their soldiers to go
to war. Not only did the country go to war despite the people's opposition, but they were also misled
about it. This was the beginning of distrust in government and that fueled conservatism. Nixon's
Watergate scandal was also another driving force for the rise of conservatism because it just proved
that the people were better off with a limited government (Foner, Give Me liberty, 1032). Another
factor that encouraged the rise of conservatism was the fear of communism, which resulted from the
Cold War. Americans became fearful of outsiders; they became kept to themselves. Given that
conservatives support free enterprise and limited government; they became more active and
stronger. The economic crisis of stagflation, a mixture of high inflation and unemployment, gave
rise to conservatism. With the economic crisis still on force, people began to demand lower taxes
and a decrease in government spending. They just wanted the government to be as limited as
possible so people could invest more. So, conservatism was clearly on a rise because the people
themselves advocated for what conservatism stood for, which was free enterprise and traditional
values. The Iran hostage crisis in which Americans were held hostage in Iran for accepting the exile
Iranian president in the U.S, the Vietnam War that was considered a loss for America. These feelings
of failures combined with economic crisis echoed hard at home because America was going from
failure to failure. Therefore, America became more reserved, moderate in their involvement in
overseas

The Fiscal Monetary Policy Of Australia
The post–GFC expansionary monetary policy of Australia
Background
The global financial crisis (GFC) is begun with the collapse of Lehman Brothers in Sep. 2008, when
a loss of confidence in stock investors of the value of sub–prime mortgages caused a liquidity crisis,
resulting the global central banks injecting a large amount of capital into the financial markets and
consumers ' confidence hit the bottom, according to McKibbin, W.J. (2009, p.1).
The second phase of GFC stepped after the US bank crisis has evolved into the euro crisis, which
thought to be the will of US leading troubles. Europe had its own internal unbalances that proved
just as significant as those in US. Southern Europe racked up huge current–account deficits in the
first decade while countries in the north ran offsetting surpluses. The imbalances were financed by
credit flows from the euro–zone core to the overheated real estate markets of countries like PIIGS
(Portugal, Ireland, Italy, Greece and Spain). The euro crisis is also a continuation of financial crisis
by other means, as market ignoring the weaknesses of government debts overwhelmed its GDP.
The result is that the GFC has seen the largest and sharpest drop in global economic activity
nowadays. In 2009, the most major developed economies are in a deep recession. The fallout for
global trade, both for volumes and types were dramatic. The OECD predicts world trade volumes
will shrink by 13 percent from 2008 to 2009. Governments have responded with

Apush Vietnam War
The 1960's and 70's were filled with turbulent changes. The US was still reeling from containment
and its domino policy, leading it to believe that it had the right to exercise influence in foreign affair.
One foreign affair was known as Vietnam. The Vietnam War was the longest war in the nation's
history. This war, from both abroad and at home, drastically changed the society of America,
socially, economically, and politically. It caused for much anti–war sentiment and fueled the counter
culture movement, it caused inflation and contributed to the stagflation, and brought down Johnson's
reputation and caused for several changes in legislation. While the Vietnam War raged on, other
movements rose up, such as the Civil Rights movement ... Show more content on Helpwriting.net ...
They disparaged the Vietnam War. The Vietnam War put a strain on America's economy. Kennedy
and Johnson's policy was of gradual escalation. Unfortunately, this caused for increasing investment
in the war. Johnson tried to approach these problems with programs such as Medicare and Medicaid,
as a part of a larger plan called the Great Society. It was a "war against poverty". However, as the
war raged on, more and more money and lives went into Vietnam, and the 'Great Society' was not a
priority. Many people such as George McGovern criticized the massive deficit spending on the war
(Doc H). This eventually turned into both an economic recession and inflation, which became
known as 'stagflation' (stagnation and inflation). Nixon, the president succeeding Johnson, would
attempt to alleviate the situation by freezing prices and wages temporarily. In the aftermath, many
people have realized that the way we approached Vietnam was not right. Robert F. Kennedy tells
that the reason that there has not been yet a solution to Vietnam is not because of lack of manpower,
but because the way we sought to alleviate the problem was by manpower. (Doc E). Politically, the
Vietnam War was full of complications. The Vietnam War, itself started because of a culmination of
many factors, including the political theory of the Domino Effect. The Domino effect was the theory

The Competition Level Of Burger
Company details: Lila's burger shop has been operating the business for the past 20 years in
Melbourne. This company has its popular product lines such as vegie burgers, beef burgers, chicken
burgers, bacon and cheese burgers which use the locally produced raw materials and green organic
vegetables as the fillings. The company has gained the popularity within Victoria and has attracted
many interstates tourists as its fans. The company is positioned as the unique cuisine provider who
can represent the true Australian culture and food. Objectives of the research: To identify what
competition level of burger providers within the targeted international markets To identify
consumers' attitudes towards Australian burger products within the targeted international markets To
identify the demanding levels with Australian burger products within the targeted international
markets Include a list of information sources that you used and a brief summary of the information
provided. Information source 1 http://www.themalaysianinsider.com/business/article/burger–bakar–
abang–burn–strives–to–double–sales–to–rm20–million Information source 2
http://www.austrade.gov.au/Australian/Export/Export–markets/Countries/Malaysia/Industries/Food–
and–beverage Information source 3 http://www.futuredirections.org.au/publications/food–and–
water–crises/2022–australia–s–food–export–outlook.html Information source 4

Cause And Effect Of Inflation
INTRODUCTION:
Inflation is the situation when the general prices of the goods and services are increasing
continuously together with the decreasing power of the money. In simpler terms inflations can be
defined as the continuous rise in the prices of the goods and services or it can be defined as the
situation when the demand is more and the supply is less. According to Milton Friedman "Inflation
is always and everywhere a monetary phenomenon [1]."
HISTORY OF INFLATION IN INDIA:
Inflation is present in India from a long period of time however except the year 1956 the inflation
always remained in control i.e. about 10%. In 1960's we faced a hard inflation due to various wars.
However in 1970's due to high prices of oil led to high inflation but emergency brought things in
control. However in 1980's apart from 1981 when the inflation was about 18% after lifting the
emergency, there was soft and gentle inflation because the rules were made liberal. In 1990's the
inflation rose again but liberalization helped to maintain inflation in single digits only. In 2000's,
2008 saw a great deal of inflation where the inflation rate went into double digits. Source:
httpscapitalmind.in201108the–history–of–inflation–in–india
TYPES AND CAUSES OF INFLATION:
The key types of inflation include demand pull inflation, cost–push inflation and profit–push
inflation. Apart from above three inflation other inflation that are present are creeping inflation,
walking inflation, running inflation,

Free Market System In The US Organize The Economy
Organizing an economy is a tremendously difficult task as there is no single correct way to create a
successful monetary or macroeconomic policy. Economics is a complex system that impacts our
everyday lives for better or worse. A struggling economy could be the difference of not being able to
get that extra cup of coffee or worrying if you will find a summer job between semesters. The
economy is so important to the public that it is a central issue nearly every election. Political parties
will always have fiscal policies s among their platform. These policies vary between political parties
and are somewhere on the political spectrum.
The government should allow the free market to exist with limited regulation. Using the
government's legal system, it should only create the framework that would allow a free market
system to exist. There were to options discussed in Dinner Party Economics when referring to an
inflation or recession gap problem "The first is to do nothing and let the economy self–correct on its
own. The second is to make changes to make changes to fix the discretionary policy (pg.147). The
free market system is designed to experience both periods of recession and growth. The growth
periods are typically larger than the recessions ... Show more content on Helpwriting.net ...
The free market system is successful as people tend to act in their best interests leading to the
definition of the invisible hand directing the economy. Consumers will consume the goods or
services that

Neoliberalism Research Paper
Growing up in a capitalist era, neoliberalism has somewhat crept up on me. Until this class I could
not define it or answer how it has impacted my life. I believe that there is great power acquired
through knowledge and the ability to educate ones self. The naturalization of neoliberalism has
entered multiple domains of lives with a subtleness that can go unchallenged. I would like to focus
on the effects neoliberalism towards our education system. In order to explore this issue we must
first understand Neoliberalism and certain aspects of it.
What is Neoliberalism?
The idea of neoliberalism has a specific start point. This more recent gain of hegemony was
designed for a "particular people with particular interests"(Hickel) in the simplist form the ... Show
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Republic party?
ROLE of state
What it means
As mentioned earlier the specific purpose of neoliberalism pertains to "particular people with
particular interests". Harvey supports this claim adding that the neoliberal polices have allowed for
'accumulation by dispossession', through creating a concentration of wealth among the rich through
taking away from wealth from the public, or poor. Harvey describes four ways in which the wealth
distribution occurs, through privatization, financialization, the management and manipulation of
crises and State redistributions (tax changes in favour of the wealthy).
The four ways of wealth distribution happen through a number of neoliberal economic polices.
Brown specifies the polices such as deregulation of industry and capital flows, reduction in welfare
(state provisions and protection), privatized and outsourced public goods, regressive tax and
removal of tariffs and end of wealth distribution (28). She suggests that such policies result four
major effects: intensified inequality, crass or unethical commercialization, growing relationship
between corporate and financial capital with the state and economic havoc (Brown 28–30).
Effects of

Did Reaganomics Fix The Economic Troubles
What was Reaganomics?
The economic policies of Ronald Reagan, which called for widespread tax cuts, decreased social
spending, increased military spending, and the deregulation of domestic markets.
How was the state of the economy in the 1980s?
When Reagan entered office during the beginning of the 80s the economy was suffering.
Stagflation, or high inflation combined with a high unemployment rate was occurring. But by 1983,
inflation had eased and the economy had sustained a period of economic growth.
Did Reaganomics fix the economic troubles? Explain!
Reaganomics did fix economic troubles. His goals of the policies were achieved. Reagan cut tax
rates enough to stimulate consumer demand. Government spending was slowed down,

Economic Liberalisation Of India And India
Economic liberalisation in India
India is a country which was and still is diverse in terms of cultures, languages, ethics and beliefs.
During the 1970–1990 when the British rule had just been over in India, it soon started to face
problems in their balance of payments. By the end of 1990, it was in a serious economic crisis. The
government was close to bankruptcy, the central bank of India had refused new credit and foreign
exchange reserves had been depleted to a point where India could barely finance three weeks' worth
of imports which made the Indian government airlift the nations gold reserves as a pledge to the
International Monetary Fund (IMF) in exchange for a loan to cover its balance of payment debts.
The main causes of the crisis was 1) currency overvaluation,2) the current account deficit, and the
confidence of investors played a significant role in the sharp exchange rate depreciation/devaluation.
The economic crisis was primarily due to the large and growing fiscal imbalances over 1980–1985...
During 1985–1886, India started to have balance of payments problems. Precipitated by the Gulf
War, India's oil import bill increased, exports decreased, credit dried up, and investors that had
invested their money in India took their money out. Large fiscal deficits, over the time, had a huge
spill over effect on the trade deficit, culminating in an external payments crisis. By the end of the
90's, India was in deep economic trouble. The gross fiscal deficit of the

Events In History Summary
Throughout the reading I have learned that many of past events in history effect what happens in
present times. Geraldine Ferraro, Barry Goldwater, Billy Graham, Ronald Reagan, James Watt and
many more played an important role in history. Events such as the Rust Belt, Sunbelt, Proposition
13, Reaganomics, the Iran Contra scandal, and a grassroot movement also played a role in history
making.
Geraldine Ferraro was the first woman to run for vice president of a majority party. Another woman
who created a turning point in history is Sandra Day O'Connor. O'Connor was the first woman on
the Supreme court.
Barry Goldwater was a presidential candidate in for the Republican Party. Goldwater was beat by
President Johnson by a landslide. When World War II came to an end, there was a religious revival
in the United States that had begun. Billy Graham, a Protestant minister built national followings. In
the ... Show more content on Helpwriting.net ...
Many hear and learn about the Sunbelt, however, I did not know there was a Rust Belt. The Sunbelt
occurred when the movement to the South and West continued after World War II. The Rust Belt
refers to the declining Northeast. The Rust Belt region had the most unemployed people, and were
often polluted. Those of the Sunbelt did not want high taxes and federal regulations that would
threaten growth (P. 982).
I have also learned about the Iran–Contra scandal. Individuals in Reagan's administration illegally
aided the Nicaraguan contras. Marine Colonel Oliver North testified before Congress, along with
another National Security Council official and CIA official. They admitted to covering their actions,
which included shredded documents and the destruction of evidence. The investigation found that
Reagan had approved arms sales. However, Reagan had not known about the diversion of money to
the Nicaraguan contras. Even though he had insisted that he did nothing wrong, this scandal
corrupted his second office

The Relationship between Unemployment and Inflation:...
The (Possible) Relationship Between Unemployment and Inflation: Implications for Theory and
Policy
Introduction As with any scientific or empirical body of knowledge, the theories and facts of
economics are undergoing constant testing and reevaluation, at times including major shifts in
theory that reject old models and develop new understandings of economic interactions. It is
arguably the case that in economics and the other "human sciences" such as sociology and political
science that such theories undergo even more constant and revolutionary changes due to the
practical impossibility of controlled experiments in laboratory settings such as are available to the
"hard sciences" of physics, chemistry, and the like. Computer modeling has changed this to some
degree, but even these technologically advanced techniques do not necessarily help determine
certain and lasting economic trends. Examples of shifts and conflicts in economic theory abound,
such as the concepts of "trickle–down economics" and current assertions of corporate tax cuts
leading to job creation, compared to other economic theories that suggest money pumped into the
lower end of the economy actually boosts economic progress and growth. Broader economic
theories and foundational assertions have also been disputed, discarded, and replaced at various
points in the progress of human history. Understanding which theories are actually correct or
applicable is not merely a matter of academic importance,

The Hostage Crisis By David Farber
When a group of radical Islamic students stormed the U.S. embassy in Iran and took the Americans
working there hostage during the fall of 1979, the nation reacted with shock and outrage that far
outweighed the necessary emotion for the situation. As David Farber writes in his book Taken
Hostage, "The Iranian imbroglio, in fact, affected the American people less directly than any of the
others...it happened faraway, and caused little immediate pain to any but the hostages...Yet, as
measured by public concern, emotional outpouring, and simple fascination, the Iran hostage crisis
captivated the American people more than any other of the era's difficulties (1)." Why were
Americans so impassioned about the crisis if it didn't really affect them? ... Show more content on
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The Vietnam War birthed the majority of the problems that Americans faced during the decade, and
was itself a product of America's intense abhorrence of Communism coupled with the nation's desire
to impose its will on countries that it thought needed help. The war, simply put, was a disaster.
Those who insist that America has never lost a war are putting too much faith in the fact that we
didn't technically surrender, instead choosing to abandon the war effort and leave the South
Vietnamese to their fate. Their fate was the Communism that America went to war to prevent in the
first place. Needless to say, the Vietnam War left a bad taste in the mouth of the American majority.
"America's failed war in Vietnam," Farber writes, "had, obviously, done much to break the
ideological spell of anti–communism (16)." The loss in Vietnam was humiliating; citizens who had
grown used to America being a world superpower watched in abject horror as the U.S. was sent
running home by a third world country. America's sense of superiority vanished, and the "victory
culture" that emerged due to World War II was "largely discredited (16)." A fear that was born out of
the Vietnam War came to life during the hostage crisis–the United States was no longer a formidable
opponent in the eyes of many nations. The Iranian hostage crisis was "an obvious symbol, an easily
understood example of the nation's inability to control its own fate,

Essay on Commanding Heights Part 1 Summary
The "Battle' in this documentary is basically the struggle between free market and increased
government control in the era characterized by globalization. These economic revolutions that
would follow would turn out to determine the future of our planet. Essentially, it was John Maynard
Keynes v. Friedrich von Hayek, two of the most well–known economists of their time. Keynes could
see the faults of free market in the time after the war and that all of those errors could be fixed if the
government regulated the economy. However, Hayek thought that the free market would fix itself,
with no government control. World War I laid a whole continent to waste and drew attention to the
problems of political organization. People were looking for ... Show more content on
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However, on Black Thursday, stocks prices plunged and the downward spiral could not be stopped.
During the 30s, values and prices spiraled downward and left people with no ability to earn, repay,
spend, or consume. The banks also went down with it and people tried to rush to withdraw all of
their savings. Millions of people lost everything and the government could not do anything about it,
but instead made it worse. There was extremely high unemployment. Keynes was the real inventor
of macroeconomics during these time period, as well as GDP, rate of inflation, and many other
things. When Roosevelt came into office, he had to face the debt and his confidence rallied the
whole nation, along with the New Deal. He created new agencies to regulate banks and the stock
markets. Under the New Deal, industry came under many new rules and regulations. Keynes ideas
began to gain ground during this time and World War II is what it took for his theories to become
government policies. As the war began, high unemployment ended and the depression was gone,
which was a demonstration of Keynesian ideas. Commanding heights derives from Lenin's speech,
who appealed to those who criticize his amendments regarding the Marxist economics, that as long
as the government owns the major industries such as oil, finance, and steel, it is okay to let
individuals have some of their properties. The Keynesian idea states that the government must have
control over the commanding heights

Increased Income Inequality Since 1970
. Causes of increased income inequality since 1970 This could be because of the stagflation, the
combination of recession with inflation, of that decade. The stagflation leads to unemployment as
there is less growth in the economy, more workers are laid off or they will receive a lower salary. In
times of a recession it is very difficult to find a job or a better paying job. On the other hand, the
government might give subsidies to companies to stimulate growth, the owners of the companies or
managers because of this may receive a higher salary. This contributes to income inequality. 3.
Political conflicts which contribute to the rebelling of youth against the American Dream In a more
political context, the Soviet Afghan war was still taking

70s Energy Crisis Analysis
There is substantial discussion whether the environmental and energy crisis of the 70s or the
globalization and terrorism in the early 21st century ushered in a period of decline in the United
States. Despite being nearly three decades apart from one another and completely dissimilar in
nature, there are many correlations that may be drawn into how these two matters frolicked into the
deterioration of the United States. Based on my understanding and opinion, I would state that the
environmental and energy crisis of the 1970s was the principle declining factor, which subsequently
led to the globalization and terrorism experienced in the 21st century that only added to the decline
of America.
During the 1970s, a clear majority of Americans were ... Show more content on Helpwriting.net ...
In fact, Jimmy Carter stated, "[America] is the most wasteful nation ... use twice as much energy per
person [than] Germany, Japan, and Sweden" (Carter, Primary Resources: Proposed Energy Policy,
1977). It was certainly a double–edged sword to many Americans since the environmental crisis was
occurring at the same time were focused on conservations and cleanup efforts and to reduce oil
drilling, meanwhile oil supply was almost nonexistent and being used so carelessly that it became an
inevitable to drill for more oil. The dependence on oil is evident in a graph where in the late 1970s,
petroleum energy consumption is nearly at 40 quadrillion Btu, and natural gas was at 20 quadrillion
Btu (07 Environment–Oil Crisis Readings.pdf). Alternative energy sources were considered, but
these sources were just as dangerous, if not worse to produce, due to their cost and power per unit.
In fact, it was a talking point in Carter's televised speech to seek for more alternative resources, use
the most of what was left, and "apply stricter safety standards to nuclear energy" after the nuclear
accident at Three Mile Island (Carter, Primary Resources: Proposed Energy Policy,

John Maynard Keynes 's Economic Theory And Policy After...
At the start of the Great Depression, people in all affected countries believed that a free market –
based on supply and demand with no government control – would deliver full employment. John
Maynard Keynes came up with a theory as a counterargument: that aggregate demand is the single
most powerful force in any economy. Keynes explains that free markets are not able to balance
themselves out enough to lead to the full employment everyone was waiting for. The 1930s gave rise
to Keynes' ideas, especially after the publication of his revolutionary book The General Theory of
Employment, Interest, and Money in 1936. "Keynesian economics dominated economic theory and
policy after World War II until the 1970s," when the issue of stagflation introduced itself to a
disappointingly unprepared Keynes. (CITE JAHAN P.54)
Keynes and His Theory
John Maynard Keynes was a well–known British economist, and is credited with the establishment
of modern macroeconomics. One must remember that the concept of macroeconomics already
existed, but Keynes' addition includes a "systematic approach to aggregate economic phenomena."
(CITE SNOWDON/VANE P 13) While The General Theory of Employment, Interest, and Money
might be his most famous work, he also had two other important works released before it. The first
was The Economic Consequences of the Peace in 1919, arguing that the Versailles Treaty would
lead to another war in Europe. The second, released just six years before General Theory, was A

Conservatism Resurgent Research Paper
Wilai Schober
HIST 112
November 25 ,2015 Conservatism Resurgent The big story of the 1970s is all about economics.
Twenty five years of broad economic expansion and prosperity came to a grinding halt in the 1970s
meaning that our party was over. The result of long–term processes was the gradual decline of
manufacturing in the U.S. and relation to competing manufacturing in the rest of the world. Part of
this was due to American policy; after WWII, we promoted the economic growth of Japan, Germany
, and South Korea and effectively subsidizing them by providing for their defense. In 1971 ,
Americans experienced an export trade deficit importing more goods than it exported. Moreover, the
growing global competitions put American firms that ... Show more content on Helpwriting.net ...
After Americans got to experience of two years of Gerald Ford, Jimmy Carter had a chance to fail at
improving the economy. In 1976 , Jimmy Carter had become the 39th president of United States. He
was a failure as a president. He tried to fix the inflation part of stagflation, but he used un–New Deal
Democrat ways. He cut government spending , deregulated the airline industry and he supported the
Fed's decision to raise interest rates. Aiming to make Human Rights a cornerstone of America's
foreign policy, Jimmy Carter tried to turn away from the Cold War framework and focus instead on
combatting third world poverty and reducing the spread of nuclear weapons. I have learned that the
most important story of the 1970s was the recession, a period of economic stagnation. High inflation
and high unemployment had monumental effects in shaping the great country, America. Moreover,
oil shocks and inevitable systemic changes led to the poor economy and that weakened the support
for New Deal liberalism and increased the appeal of conservative ideas. The recession in the U.S.
lasted from Richard Nixon presidency to Gerald Ford presidency. Low economic growth continued
even from Jimmy Carter presidency until the mid–term of Ronald Reagan's first

The Relationship Between Inflation And Unemployment
The relationship between inflation and unemployment is a topic, which has been debated by
economists for decades. It is this debate that has made the opinions about it evolve. In this essay, the
controversial topic will be discussed by viewing different economists' opinions on that according to
time sequencing.
Inflation is an increase in price levels within an economy. Basically it means that you will have to
pay more for the same goods. Unemployment is even more straightforward. It means that a person is
available for employment but is unable to find employment. Lastly, the unemployment rate, which is
the percentage of potential workers that are unemployed, is used to measure unemployment
(Mankiw 1992).
The debate about the relationship between inflation and unemployment is mainly based on the
famous "Phillips Curve". This curve was first discovered by a New Zealand born economist called
Allan William Phillips. In 1958, A. W. Phillips published an article "The relationship between
unemployment and the rate of change of money wages in the United Kingdom, 1861–1957", in
which he showed a negative correlation between inflation and unemployment (Phillips 1958). When
the unemployment rate is low, the inflation rate tends to be high, and when unemployment is high,
the inflation rate tends to be low, even to be negative.
Two years later, economists Paul Samuelson and Robert Solow, who adhere to the Keynesian school
of economics, also published an article, showing the same

The Effects Of Inflation On The Economy
Decades ago, many economists did not believe that inflation –the escalation of prices that makes the
money to be less valuable in the market– (Newnan, Eschenbach, & Lavelle, 2014) could rise
together with unemployment because they stood in the wide belief of a direct relation between
economic growth and employment. That is to say that when the nation's economy is in its healthy
moments, the rate of unemployment will decrease, and in the other part the inflation will increase
because people have more income, so, they will be willing to spend more. Moreover, people thought
that increasing of inflation allowed the economy to grow. Therefore, if inflation reduced, the
unemployment would be raised, and consequently, the economy of the country ... Show more
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In that way, not only the need of goods will drive the labor force to its pleasant stage, but it will also
force prices to escalate simultaneously (Aspromourgos, 2012). Although the Keynesian–economic
policy is wrong in the present view, it was not until the 1970s when an unknown phenomenon
emerged in the United States that its ineffectiveness was proven; for the surprise of many
economists. The phenomenon was defined as "stagflation," and it consists of a "period [in which
both] unemployment and inflation rise at the same time" (Barsky and Kilian, 2004, p.131), and it
was caused by primary the combination of shock in oil prices and unsuccessful monetary policies.
Actually, there are two theories that try to explain the possible causes of the 1970s stagflation. On
one hand, experts believe that the attempt of policy makers to control the fluctuation of inflation that
the nation faced in the previous years to the stagflation might have led to the unintended
consequences. For example, when the federal government put in place restriction monetary policy to
avoid a rapid growth of the nation's economy that would turn the inflation down; the inflation was
up as a result of the over money supply that the central bank applied during the 60s following the
Phillips curve. Thus, the excess stimulation or liquidity caused the high inflation rate that the
restriction was intended to bring down. Unfortunately, this restricting actions did not shift the
inflation

Led Zeppelin Research Paper
Driven Zeppelin has left a mind–boggling legacy and even Jimmy Page is glad for the way that their
music propelled some of today's most prominent artists to seek after their fantasies. Aerosmith,
Guns 'n Roses, and Van Halen acquired the sound from the tune "Entire Lotta Love" for their
fundamental feel. It would require a long investment to try and rundown the different groups that
confessed to being affected by Led Zeppelin however they incorporate Metallica, Madonna, Red
Hot ChiliPeppers, Audioslave, Alice Cooper, and Beastie Boys to give some examples. Basically
Led Zeppelin had some kind of impact on an extensive larger part of prominent artists and
gatherings. Brian May of Queen even said that Led Zeppelin made the general outline of

The European Union : A Peaceful Solution Of The Crisis
In March 2014 the Russian Federation (Russia) annexed the Ukrainian territory of Crimea following
escalating tensions and conflict within Ukraine. The European Union (EU) considers the annexation
of Crimea "a clear violation of Ukrainian sovereignty and territorial integrity by acts of aggression
by Russia". Russia considers the inclusion of Crimea within its territory as an expression of the
democratic free will of the people following a local referendum on 16 March 2014.
The EU believes negotiations can lead to a peaceful solution of the crisis. The EU has imposed a
series of escalating 'restrictive measures' (economic sanctions) in an attempt to apply diplomatic and
economic pressure on Russia in response to its annexation of Crimea. ... Show more content on
Helpwriting.net ...
In order for sanctions to be effective, the EU must ensure the cost of sanctions to Russia is larger
than the benefit of annexing Crimea.
The EU has implemented 'targeted' economic sanctions against Russia. To date these targeted
economic sanctions have been applied to five major state–owned Russian banks, three major energy
companies, three major Russian defence companies, provision of certain financial services and on
providing loans to state–owned Russian banks (further detail is provided at Appendix A). In
response Russia has implemented counter economic sanctions against the EU, specifically targeting
food and agricultural products. The effectiveness of sanctions in applying economic pressure can be
understood by examining its impact on demand, output, cyclical unemployment and inflation in the
Russian economy. As shown in figure 1 these economy components are inextricably linked, changes
in one component causes flow on effects to the others. Changes in each of these components will be
considered in turn.
Changes in Output
The difference between actual and potential Gross Domestic Product (GDP) is known as the 'output
gap'. In December 2014 the Central Bank of Russia (CBR) measured the output gap for the
economy at –2%, indicating a 'recessionary gap'. In March 2015 the CBR revised its forecasts and
estimated the

Shift To Neoliberalism
A Shift to Neoliberalism
In the final four decades of the twentieth century, America in national politics and economics
underwent a stupendous shift in national politics and economics. Culturally, the countercultural
lifestyle and radical politics frequently embraced the offspring of the WWII generation who initiated
a new cultural and ethnic pluralism that fought against social injustices. Economically, it shifted
from an expansive welfare state to a neoliberal state when the government encouraged private
investments. The state–centric system dominantly supervised the regulation of the U.S. economy,
however, the rise of neoliberalism in the seventies and eighties enhanced the role of the private
sector that widened the income gap between ... Show more content on Helpwriting.net ...
President Reagan was a conservative president who believed in freedom, deregulation, low tax, and
more, so he proposed neoliberal policies that related to them. During his presidency, Reagan
persuaded the reduction of the top tax rate while deregulated government the control over the
market, the ideas of free market and social democracy emerged. Reagan stimulated private
investments in the free market economy, yet his policies didn't necessarily linked to social
democracy but social inequality when "Deindustrialization and the decline of the labor movement
had a particularly devastating impact on minority workers ... Black workers, traditionally the last
hired and first fired, were hard hit by economic changes" (Give Me Liberty!, 1052). Reagan
successfully encouraged economic investments, yet the Reaganomics promoted deindustrialization
in America when companies set up factories abroad. When American companies fired unionized
workers, it resulted in nationwide unemployment that expanded the income gap between rich and
poor. Neoliberal policies negatively influenced equality among different social classes and races
because the unequal distribution of wealth made the urban poor, especially African Americans
workers, to suffer in economic hardship. Even it was compelling that Reagan reversed the economic
decline

The Treasury Department 's Actions
The Treasury Department's Actions
During the largest recession the United States has seen since the great depression, the Treasury
Department sprung into action to stave off another depression. Within a short period of time after the
housing bubble burst, financial institutions started to fail. Credit and liquidity virtually vanished
within days. The government was forced to react quickly to thwart a complete financial collapse. An
estimate from the public interest group Better Markets has calculated the cost of the recession close
to $12.8 trillion (Puzzanghera, 2012). This number is criticized since it includes losses in economic
output, GDP, and bail–outs, while home equity losses and consumer net wealth are not. This figure
does give a good idea of the magnitude of the Treasury Department's actions. A multitude of
industries, and companies received direct financial aid. The government identified key economic
areas where policies were needed, and provided credit and liquidity for growth in those areas. The
quick response of the Treasury Department helped in reducing the negative effects of the financial
crisis. The three economic theories that I identified in this financial crisis consist of classical
economics, Keynesian economics, and aggregate market (AS–AD) analysis. There was also a fear of
monetarism which has not come to fruition at this time.
Economic Theories
Classical economics is considered one of the original economic theories. It is based on the

Raising The Minimum Wage
In early 2017 the Democratic lawmakers introduced a policy that would increase the federal
minimum wage to $15, more than double the current minimum. While Democrats and other
supporters of the proposal argue that the higher wages will have an overall benefit to these wage
earners. Economic experts like David cooper say, "the minimum wage would no longer be a poverty
wage. It would enable tens of millions of millions of adults to improve the conditions of their
families and in turn their communities." Despite all of these positives, more economists have
determined that the overall impact of a higher minimum wage would negative. These economists are
against the raise in wages because the higher cost of labor will make it harder for vital small
businesses and even large corporations to grow and expand, it will also drive prices up, and will
reduce the overall skill of the work force. Overall, the federal minimum wage should not be
increased because the higher price of labor will cause a slower rate of growth in the number of jobs,
increases prices, and decrease the skill of the labor force. Perhaps the largest problem with the raise
in wages is that it will create a higher price for low skill workers thus deterring businesses from
hiring and creating these low wage jobs. This effect is the most directly caused by the increase in
costs of production. It is a well known economic fact that as costs of production increases one of
two things must happen, prices must increase or

Have you heard of a song called “Brother, Can you spare a...
Have you heard of a song called "Brother, Can you spare a dime"? This is one of the famous
American songs related to the Great Depression. If you are a student studying Economics or
Business, you may have heard about it more than once. The Great Depression is an economic slump
that happened in the States, North America. It has also affected many other European countries and
industrializing countries. This was one of the most longest and extreme economic depression that
happened between the year 1929 through the year 1939. The value of the stocks suddenly decreased
one day in the late October of 1929 which is referred as The Black Tuesday. All of a sudden, many
people have lost their jobs, factories and schools shut down, and many children ... Show more
content on Helpwriting.net ...
The World War One is simply referred as the "European War". It was mainly the conflict between
two opposing forces (England, France, Russia versus Germany, Austria...etc). At first, the World
War One was in fact beneficial for the American Economies. The States sold a lot of weaponry and
machinery to the competing countries (like Europe). However, the major consuming countries like
England and Germany weren't able to afford all those materials, so the U.S. sold the products on
credit. Eventually, the war abruptly ended and there was the result of an enormous International debt
that cannot be repaid. Many European countries owned a lot of debt to American banks.
Unfortunately, the U.S. government refused to lower neither the loan rate nor the amount of debt.
That is the point when all the economic and financial foundation began to collapse.
Last of all, one of the major factors causing the Great Depression was little or no action of the
government. At that time, Herbert Hoover was the president of the United States. His first
impressions were quiet popular to the citizens but he is now criticized for his lack of leadership. He
did not manage the country well in the time of depression. For example, there were even towns
called Hooverville in those days. Because of his lack of leadership, people named an African
American slum as Hooverville(being kind of sarcastic). It was a very large town located in Chicago
and people with the lowest income lived

Why Was The Treaty Of Versailles So Important To The...
First, the Weimar Republic produced some amazing culture in the arts, sciences, technology, and
education (Read This). Seriously, a LOT of very cool stuff happens in interwar Germany before the
Nazis rise to power.
Second, the Treaty of Versailles was so vindictive, so punitive, so vengeful that the reparations were
never going to be realistic for Germany to manage and it all but paved the path to WWII .
England, France, and their allies knew that a destroyed , post World War I Germany was never going
to have the economy to be able to recover as a nation and make the reparation payments. And they
didn't care, their goal was not to create a lasting peace but to bring Germany forever to its knees and
eliminate it as a colonial competitor. It is the working out of a lot of hatred and animosity (mostly
from France) that dates back to the beginning of the 19th century.
Have you see then images of the Germans taking their currency to stores in wheelbarrow just to buy
loaves of bread, because their currency was so worthless, or using it for wallpaper because they'd get
more use out of it that way than trying to buy anything with it?
Inline image 1 Inline image 2#TrueStory ... Show more content on Helpwriting.net ...
They made the same money, but gasoline cost $30/gallon instead $3, milk was $40/gal instead of $4
lunch at Starbucks cost $100 instead of $10––and remember, they're earning the same amount of
money as before the prices started skyrocketing (this is a real economic phenomenon called
stagflation, by the way). They would be angry, they would be afraid, and after a short time, they
would become desperate and hopeless. Desperate people without hope are very dangerous for 2
reasons. 1) They have nothing left to lose, which means consequences for negative actions seem less
of a worry––punishment is no longer a deterrent. 2) They will turn to ANYTHING and ANYONE to
feel safe

The Theory Of Keynesian Economics
Introduction
During the Great Depression in the 1930's "classical theory had difficulty in explaining why the
depression kept getting worse" (Cheung, n.d., para. 1). Many economists have attempted to develop
theories that help to explain changing circumstances and why things kept getting worse. John
Maynard Keynes, a British economist also known as the founder of macroeconomics, saw this as an
opportunity and began to develop alternative ideas. His alternative ideas led to the idea of Keynesian
economics.
What is Keynesian Economics? Keynesian economics was used to manage the economy for roughly
forty years until around 1970. "The main plank of Keynes's theory, which has come to bear his
name, is the asser–tion that aggregate ... Show more content on Helpwriting.net ...
3). In order for there to be full employment or lower unemployment
rates the demand of goods needed to remain constant. In order for demand to increase it had to come
from the economy's output of goods and services. "An economy's output of goods and services is the
sum of four components: consumption, investment, government purchases, and net exports (the
difference between what a country sells to and buys from foreign countries)" (Jahan et al., 2014,
para. 4). If savings was more than that of investments, there would be inflation. On the other hand,
Keynes stated that if more went into investments than savings there would be a recession in the
economy. This would mean that consumers would spend less, causing businesses to invest less in the
market. Other well–known economist, such as Adam Smith who felt that government should play no
role in the market, Keynes felt that state intervention was the solution to this problem. According to
Keynes, state intervention was necessary to "moderate the booms and busts in eco–nomic activity,
otherwise known as the business cycle" (Jahan et al., 2014, para. 4). Keynesian felt that state
intervention would promote full employment and price stability and more specifi–cally,
"governments should borrow money and boost demand by pushing the money into the economy.
Once the economy recovered, and was expanding again, governments should pay back the loans"
(John

Analysis Of The Aggregate Demand And The Aggregate Supply...
The aggregate demand and the aggregate supply model is a macroeconomics model that explains
price level and real output through the relationship of aggregate demand and supply. The aggregate
demand curve consist of consumption(C), investment (I), government spending (G), net export
(NX). The question caused by monetary expansion. In this essay, it analysis monetary policy, Philips
curve which relation between inflation and unemployment.it draws conclusion and apply the theory
into two countries which are England and France.
Basically, the monetary policy is government 's or central bank 's policy for controlling of the
amount of currency available and the rate at which people can borrow money'. In this problem, the
Ad curve shift caused by monetary expansion in Ad–As model. The graph shows Y is above the Yn.
The monetary expansion is increasing size of country's money supply and capital, reducing the tax
and interest rate. For example, from the Y (level of production) = Yn (level of natural output), when
central bank reduces the tax, the AD curve shifts to the right. At this moment, Y is above the Yn, and
the vertical axis has P for price is above Pe for the expected price. It this situation called short–run
effects. As the graph 1 shows, it illustrates about the problem.
Now, we want to take back general equilibrium (short run to medium run). The goal is the AS makes
to upward and Yn=Yn. When the economic situation which is supply shock. The supply shock is
'unexpected

Keynesian Economics For American Fiscal Policy
Pragmatism reactionarily stems from the excesses of its past. The realization in United States
politics that increasing government tax rates would not solve the economic malaise of high
unemployment and rising inflation occurred in the late 1970s. Thus began a movement in the
minority of economic thought suggesting the existence of a prudent alternative to the widely
accepted theory of Keynesian economics for American fiscal policy. Though subtle at first, these
ideas of supply–side economics gained traction quickly and reached the national stage with Ronald
Reagan's Inaugural address and promise to end the troubles of stagflation and begin the "
[reawakening of] this industrial giant, to get government back within its means, and to ... Show
more content on Helpwriting.net ...
The crux of Ronald Reagan's economic policy, the tax cuts, paved the road for success in the
improvement of the economy. The promised effect of an increase in federal revenues and reduction
in the cost of capital for America's private sector necessitated the lowering of marginal tax rates that
occurred in Ronald Reagan's first term. The embodiment of these reductions and much of the credit
for the economic rebound of the mid 1980s can be assigned to the Kemp–Roth Tax Cut Act of 1981.
Reagan's trickle down economics strategy held underpinnings in his belief that the nation's
wealthiest individuals and captains of industry had been disincentivized to earn more money from
the oppressive tax rates of his predecessors. Accordingly, Kemp–Roth cut the top tax rate from 70%
to 50% as recognition of the disproportionate financial capability of the nation's top earners to
reintroduce prosperity. Additionally, Kemp–Roth provided benefits to the affluent by increasing the
estate tax exemption from $175,000 to $600,000 and by increasing deductions therein to further
circumvent the re–taxation of hereditary wealth. While Reagan entrusted the top tax bracket with the
responsibility of spending these funds as part of his plan to end the prolonged period of
unemployment, Reagan also included provisions in the Kemp–Roth Tax Cut that affected all
workers by removing

The Importance Of Stagflation In The United States
3.) Stagflation – Stagflation is a slowdown in the economy, which can include high unemployment
and this is paired up with high levels of inflation. It is significant because the economy is basically
stuck. The middle class also tends to shrink in these periods because people loose the ability to have
spending money. This is somewhat going on now with rising gas and food prices.
5.) Patriot Act – The law is intended to help government agencies detect and prevent possible acts of
terrorism, or sponsorship of terrorist groups. The U.S Pariot Act permits the government to
scrutinize peoples' reading habits by monitoring public library and bookstore records, without
notifying the suspect. It also allows for "sneak and peak" tactics such as physical search of property
and computers, wiretapping and monitoring of email, and access to financial and educational
records, without providing notification.
6.) Operation Desert Storm, popularly known as the first Gulf War, was the successful U.S.–Allied
response to Iraq's attempt to ... Show more content on Helpwriting.net ...
He was also the first Greek American to hold these offices. Agnew is the only Vice President in U.S.
history to resign because of criminal charges. Ten years after leaving office, in January 1983, Agnew
paid the state of Maryland nearly $270,000 as a result of a civil suit that stemmed from the bribery
allegations.
12.) The Clean Air Act is a United States federal law designed to control air pollution on a national
level. It is one of the United States' first and most influential modern environmental laws, and one of
the most comprehensive air quality laws in the world. The Clean Air Act is important because we
can't live without it. Depending on the building, windows aren't allowed to open for security and if it
is a highrise, we don't want the windows to open. Laws change to protect the

Essay On Australian Burger
Lila's burger shop has been operating the business for the past 20 years in Melbourne. This company
has its popular product lines such as vegie burgers, beef burgers, chicken burgers, bacon and cheese
burgers which use the locally produced raw materials and green organic vegetables as the fillings.
The company has gained the popularity within Victoria and has attracted many interstates tourists as
its fans. The company is positioned as the unique cuisine provider who can represent the true
Australian culture and food. Objectives of the research: To identify what competition level of burger
providers within the targeted international markets To identify consumers' attitudes towards
Australian burger products within the targeted international markets To identify the demanding
levels with Australian burger products within the targeted international markets Include a list of
information sources that you used and a brief summary of the information provided. Information
source 1 http://www.themalaysianinsider.com/business/article/burger–bakar–abang–burn–strives–
to–double–sales–to–rm20–million Information source 2
http://www.austrade.gov.au/Australian/Export/Export–markets/Countries/Malaysia/Industries/Food–
and–beverage Information source 3 http://www.futuredirections.org.au/publications/food–and–
water–crises/2022–australia–s–food–export–outlook.html Information source 4

Aggregate Supply Curve
AGGREGATE DEMAND, AGGREGATE SUPPLY, FISCAL
AND MONETARYPOLICY
Q No 1. Explain why the Aggregate Supply curve is upward–sloping in the short run and vertical in
the long run?
Aggregate supply is the total supply of goods and services produced by any firm in a country for
economic plan and sell these goods and services during a year. These goods and services are willing
to sell at a given price by firms.
Short Run Aggregate Supply Curve
In short run, the aggregate supply curve will go upward because there are two main reasons due to
which quantity supplied increases with the increase in price.
Firstly, the curve is used for nominal variable like wage rate and in short run, the nominal wage rate
is fixed which resulted in higher profits that give expansion in the output. ... Show more content on
Helpwriting.net ...
When demand is at low level, large number of production does not use their fixed capital equipment
then the result will be increase in production without diminishing returns. So average price level
does not increase but production increases. When demand is increased, the prices will increase
which results in a steep curve.
Long Run in Aggregate Supply Curve
In long run, aggregate supply is affected from capital, labor and technology because everything is
assumed to be used optimally at this point. In long run, aggregate supply curve is perfectly vertical
which economists' belief that changes in aggregate demand is the only reason of temporary change
in total output. In long run, only one quantity will be supplied and wage rate varies with economic
conditions i.e. high unemployment leads to fall in nominal wage rate and vice

Do You Agree with the View That the Conservative Party’s...
The Conservative Party which was leaded by Winston Churchill (1951–55) and Anthony Eden
(1955–57) and Harold Macmillan (1957–63) between the years 1951–59 wanted, according to their
manifesto in 1951, to stop all further nationalisation. The Iron and Steel Act will be repealed and the
Steel industry allowed resuming its achievements of the war and post–war years. To supervise prices
and development we shall revive, if necessary with added powers, the former Iron and Steel Board
representing the State, the management, labour, and consumers. They also wanted to free the people
from austerity and housing shortages. Macmillan introduced the stop and go economy. If the
domestic consumption and the prices rose too quickly (and the economy ... Show more content on
Helpwriting.net ...
The first motorways were built and the Clean Air Act (1956) was passed. The home ownership
increased from 30 per cent to 50 per cent and also the personal savings increased from 200£ to
2000£. The Conservative Party hindered the country's economic development but just limited. On
one side it hindered the economic development (stop and go), on the other side it enabled the
economic growth.
Source 4 is a book called Mastering Modern British History from Norman Lowe which is published
in 1984. This source is a secondary source. The Source sets up the thesis "Conservative Party
hindered the country's economic development. It criticises that the Conservative Party emphasised
the improvement in world trade rather than improving the economic policies. This caused an
economic failure. It accuses the Conservative Party for hindering the country's economic
development. The introduction of the stop and go approach caused this as well. The stop and go
approach caused Stagflation. This is a situation where an inflation rate is high, the economic growth
rate slows down, and unemployment remains steadily high. Considering the faults under the
Conservative Party the government did not perceive their opportunities to improve the economic
failures. The government had no coherent economic policy (they used stop and go). There was no
structured financial strategy (the budget was used to buy votes). The investment in the Research and
Development was

The First Televised Debate Between Richard Nixon And John...
1960s
The event that kicked off the 1960s was the first televised Presidential Debate between Richard
Nixon and John F Kennedy. This debate changed the way the American populous approached
politics because it allowed anyone with a television to have a front row seat to the debate.
Furthermore, when individuals listened on the radio, the thought that Nixon had better answers, but
when citizens saw how composed John F Kennedy was, they believed that he had one. Also, the
event that closed the 1960s was the creation of the Advanced Research Projects Network
(ARPANET) in 1969, which was the precursor to the Internet that exists today. ARPANET was the
first network to implement the Transmission Control Protocol/Internet Protocol (TCP/IP) protocol
suite, which is the fundamental structure of networks today. This allowed for computers to
communicate at a much more reliable pace by sending packets and then basing how many packets to
send next on if the endpoint received all of the packets of previous information. This is considered
to be the end of the 1960s because this is a high point of achievement that could be arguably
unsurpassed later on in the remaining months of the 1960s/
The Era of the Common Man:
The Era of the Common Man began with rise of Andrew Jackson and the Jacksonian Democrats in
the 1820s. After Jackson lost the 1824 election, even though he won the majority of the popular
vote, the American public rallied around Jackson and in the 1828 election, Jackson

Demand Shocks
What Happens When Things Change?
There are demand shocks in the Short Run , when things change. There are demand shocks when
adjusting to the long run. There are also supply shocks.(www.econweb.tamu.edu) When there is a
demand shock, this is an event that will cause the AD curve to shift. When there is a supply shock, it
is
an event that will cause the AS curve to shift. .(www.econweb.tamu.edu)
Demand shock that happen in the short run usually occur when there is an increment in government
purchases. The real increase of the GDP is measured by the horizontal shift of the AD curve, if the
price level remained constant. The prices change and cause the GDP to rise less that the horizontal
shifting in the AD. .(www.econweb.tamu.edu) ... Show more content on Helpwriting.net ...
An increase in money supply results in
the AD curve shifting rightwards. .(www.econweb.tamu.edu)
Other demand shocks ,
A positive demand shock makes the AD curve shift to the right. This results in an increase in both
the
real GDP and the price level in the short run. If a negative demand shock occurs, then the AD curve
will
shift leftward. The real GDP and the price level will decrease in the short run .
(www.econweb.tamu.edu)
The wage rates remain unchanged in the short run. In the long run the wage rates will and may
change.

When the output is found above the full employment level, the wages will change and will rise. This
will
result in the AS curve shifting upwards. When the output is below the full employment level, the
wage
rate will not rise but will decrease. This will result in the AS curve shifting downwards.
.(www.econweb.tamu.edu)
There is a self correcting mechanism that adjusts the process through which prices and wages return
the economy to full employment in the long run. When the output is more than the full employment
level, the wages must rise . When the wages rise , they cause a rise in price levels and also for the

How Did The Cold War Affect The Economy
Throughout its relatively young history, The United States has been through quite a few wars. In the
early stages of the nation's history, those wars were fought to establish freedom for the American
people as an independent nation. After independence was accomplished, the U.S. fought to expand
its territory from neighboring nations or nations with imperialist intentions. After many years of
wars intended to shape and expand the United States in the eighteenth and nineteenth centuries, it
was during the twentieth century that the wars in which the U.S. military was engaged in were being
fought abroad to protect the country that Americans had fought so hard to create. All of this fighting
has no doubt had a strong impact on the American cultural landscape; particularly during the period
of ... Show more content on Helpwriting.net ...
One of the ways that the cold war affected the U.S. economy was in the 1980's when President
Roald Regan attempted to end stagflation while also increasing military spending. In the 1970's
under President Jimmy Carter the phenomena of stagflation occurred and continued into the 1980's.
Stagflation is what happens when the economy is experiencing stagnation and inflation at the same
time. Due to inflation workers demand higher wages, the worker receives the higher pay but then
inflation rises keeping the economy in an unusual cyclical pattern of idle growth. To combat this
Regan opted to use 'Reaganomics' or what it is also known as trickle–down economics. By making
tax cuts to corporations, the few families with annual incomes of $200,000 or more while also
defunding many welfare programs. Regan believed that this would create an environment where
larger corporations would have more ability to hire new employees that would have been on welfare
programs thus making those programs obsolete. (text book 931) Although

America's Inflation Rate
3. Here are some news reports covering events of the past 35 years. In each case, identify the phase
(Phillips, stagflation, or recovery) the economy is in, and suggest what change in aggregate demand
or aggregate supply might have caused it.
a. "President Nixon expressed satisfaction with last year's economic performance. He said that with
inflation and unemployment heading down, the nation 'is on the right course.'"
Recovery
Due to an increase in AS. This increase in AS could be short term or long term due to changing
regulations or a sudden change in the price of an input, among other reasons. The increase in AS
even if AD remains constant will push down the prices and the unemployment in the economy.
b. "The nation's inflation rate rose ... Show more content on Helpwriting.net ...
If they are right, what are the implications for unemployment? What kind of unemployment would
be affected?
Unemployment would be affected in two ways:
1. First, the unemployment of low skilled individuals would increase, because machines would be
able to replace them. The same phenomenon happened time and time again already as new
technologies are able to do work better and faster than people (think about all the machines that
replaced laborer in mordern assembly lines).
2. However, on the other hand, more skilled individuals' unemployment rate would decrease. These
individuals are the ones who design, develop, update, and do the maintenance of those machines.
Indeed, these different tasks require much more technical skills than let's say repeatedly screwing in
a bolt on an assembly line.
I believe that one machine can replace more low–skilled workers than it requires to design, develop,
update, and do the maintenance. Indeed, the machine can be produced in masses (replace a lot of
individuals each time it is bought by a company), and that the maintenance is usually not a daily
activity. Therefore the overall unemployment would

Supply And Demand And Aggregate Supply Curve.

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