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Aspects of Economics Report

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Added on  2019-12-17

Aspects of Economics Report

   Added on 2019-12-17

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ECONOMICS
Aspects of Economics Report_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................31) GDP and its relationship with standards of living.......................................................................32) Reasons of unemployment ..........................................................................................................33) inflation........................................................................................................................................44)aggregate demand.........................................................................................................................55) Long run and short run supply curve...........................................................................................7Conclusion ......................................................................................................................................7REFERENCES................................................................................................................................82
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INTRODUCTIONIn present era it is important to understand all different aspects of economy and theireffects as well. In this report we will define the definitions of all important aspects andunderstand different concepts related to economics. We will also analyze their impact oneconomics with relevant examples. 1) GDP AND ITS RELATIONSHIP WITH STANDARDS OF LIVINGReal GDP: It is the concept of macroeconomics which shows changes in final output dueto modification in price. It shows real growth of an economy (Tribe, 2015.). Nominal value ofGDP shows all goods and services produced in a country within one year. Nominal GDP can beincreased due to inflation but final output remains constant, to calculate real GDP rate inflationmust be subtracted from nominal GDP so that the country can measure its real growth.Standard of living: In simple words standards of living can be say all material goodswhich helps to raise comfortable level of a person on particular social economic environment. .For economics, real GDP is divided by the total population of a country which is called as GDPper capita. This shows standard of living. Real GDP might be not a good indicator to define the standard of living of country. GDPis measured on the basis of final goods and services which are produced in a country within thespecific time (Davis,2013). It does not show the improvement in human life or environmentconditions, education, pollution and especially in the underdevelopment countries. All thesesfactor also impact the standard of living of a country. Real GDP does not count on economicactivities to measures standard of living.2) REASONS OF UNEMPLOYMENT There are several factors which affect the employment rate. Unemployment is measuredby total numbers of unemployed workers divided by total labor force. Factors which affect theunemployment rate are given below..Technology: Rise in use of technology reduces the contribution of human efforts. For instance,use of robots in automotive industry replaces unskilled labor force. By using technology in theindustry, it increases number of unemployed people.(Barberis, 2013) However, it also increases3
Aspects of Economics Report_3

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