Managerial Economics: Growth Rate, Impact on Housing in London, and GDP Doubling in UK

MANAGERIAL ECONOMICS

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUTION..............................................................................................................................1
TASK 1............................................................................................................................................1
Growth rate of GDP in United Kingdom for same period..........................................................1
TASK 2............................................................................................................................................2
Comparing the growth rate of economic environment of UK with the London.........................2
TASK 3............................................................................................................................................4
Describing how the following shock impact the demand and supply of housing in London......4
TASK 4............................................................................................................................................5
Describing why apartments become more affordable in early 1990’s........................................5
TASK 5............................................................................................................................................6
How long should it take for GDP to doubled in UK...................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUTION
Economics helps the business in making effective decisions. Economics provide for the
study the decisions related to the demand and supply influencing the wages, price and
availability of goods and services. Economic factors are to be considered by every business in
their decision making process. Managers for making decision related to the growth aspects
require assessing the economic influences of the country. The forces of demand and supply are
essential to be analysed for making prediction about the future income and expenditures. Present
report reveals about the economic climate of United Kingdom. The economy of UK has been
fluctuating over the years. It will be assess the growth in percentage and long run growth rate
during the period of 10 year. it will provide about the theoretical aspects of demand and supply
and their effects on housing in London. It will also provide about the demand and supply
frameworks for the apartments in London. It will analyse the economic aspects related to the
residential ascpects and housing prices in London and growth rate of UK.
TASK 1
Growth rate of GDP in United Kingdom for same period
Year Real GDP per capita
(US Dollars)
Growth Rate
(Percentage)
=(GDP in year 2
/ GDP in year
1) -1
1985 20073 ------
1986 20830 3.77%
1987 21734 4.34%
1988 22783 4.83%
1989 23237 1.99%
1990 23352 0.49%
1991 22947 -1.73%
1992 22922 -0.11%
1993 23379 1.99%
1994 24317 4.01%
1995 24987 2.76%
Analysis
1