Macroeconomics Power Point Presentation 2022

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Macroeconomics
Name of the Student
Name of the University
Course ID

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Introduction
World economic crisis
One significant economic event
Started in 2008
Subprime mortgage crisis
Originated in United State
Spread over other countries
Impact on France
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Trend of Macroeconomic
Indicator
Gross Domestic Product
Increased steadily from 1999 to 2008
Sharp fall in 2009
2592.08 billion dollars
Recovered since 2010
2924.903 billion dollars in 2018
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2200
2300
2400
2500
2600
2700
2800
2900
3000
Gross Domestic Product
Year
GDP (in billion)
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Trend of Macroeconomic
Indicator
Inflation
Movement of price level
Around 2% before crisis
Sharply decline to 0.09% in 2009
Started to recover
Dropped to the lowest level in 2015
0.04% and gradually recovered thereafter
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Inflation
Year
Rate of Inflation

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Trend of Macroeconomic
Indicator
Unemployment
State of labor market
Gradual decline in pre-crisis period
Lowest in 2008 (7.06%)
Hit of the crisis
Increase in unemployment
9.06% in 2018
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
6.5
7.5
8.5
9.5
10.5
11.5
12.5
Unemployment
Year
Rate of Unemployment
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Pre and Post Crisis
Comparison
Pre-crisis (1999-2008) Post-crisis (2009-2018)
2300.00
2350.00
2400.00
2450.00
2500.00
2550.00
2600.00
2650.00
2700.00
2750.00
2800.00
2475.41
2751.28
Average GDP
Period
GDP in Billion dollar
Pre-crisis (1999-2008) Post-crisis (2009-
2018)
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00 1.77
1.02
Average Inflation Rate
Period
Rate of Inflation
Pre-crisis (1999-2008) Post-crisis (2009-2018)
8.4
8.6
8.8
9.0
9.2
9.4
9.6
8.84
9.49
Average Unemployment Rate
Period
Rate of Unemployment
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Trend in Economic Growth
Economic growth
Percentage change in GDP
1.98% growth in 2001
Two consecutive year of decline
2.83% in 2004
Negative growth rate in 2009
-2.87%
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
GDP growth rate
Year
Growth rate of GDP (%)

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Explanation of Growth Trend
Fluctuation in growth
Domestic and global economic factors
New currency adaption
Growth lowered between 2001 to 2003
Financial crisis of 2008
Consumption, investment, inventory and export fall
Fall in aggregate demand and growth
Pre-crisis (1999-2008) Post-crisis (2009-2018)
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2.09%
0.93%
Average Growth Rate
Period
Rate of Growth (%)
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Explanation of Growth Trend
AD-AS model
Crisis affected different components of GDP
Decline in aggregate demand
AD shifts inward
GDP and price level contracts.
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Circular Flow Model
Circular flow model
Economic downturn
Cut in tax
Increase in spending

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Circular Flow Model
Decrease in tax to household → Increase in disposable
income →Increase in consumption expenditure →Product
market→ Revenue of firm→ Cost of resources →Resource
market → Money income to household → Increased demand.
Increase in government expenditure → Product market →
Revenue of firm→ Cost of resources →Resource market →
Money income to household → Increases demand.
GDP and price level increases and unemployment falls.
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Policy Recommendation
Downturn in economic growth
Policies to stabilize growth
Structural reform
Labor market reform
Price level recovery
Expansionary monetary policy
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Conclusion
Economic crisis of 2008
Adversely affected French economy
Decline in economic growth
Increase in unemployment
Decline in inflation
Expansionary policy measures
Structural reform, labor market reform

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References
Coppock, L. and Mateer, D., 2017. Principles of macroeconomics. WW
Norton.
D'Agostino, A., Gagliardi, F., Giusti, C. and Potsi, A., 2019. Investigating
the impact of the economic crisis on children's wellbeing in four
European countries. Social science research, 84, p.102322.
Data.worldbank.org. 2020. France | Data. [online] Available at:
https://data.worldbank.org/country/france [Accessed 19 Feb. 2020].
Goodwin, N., Harris, J.M., Nelson, J.A., Roach, B. and Torras, M.,
2015. Macroeconomics in context. Routledge.
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References
Hagiwara, S., 2019. Why Did the World Economic Crisis of 2008-2009 End
in the Great Recession? A Critical Comparison of the Great Depression and
the Great Recession. World Review of Political Economy, 10(1), pp.24-39.
Heijdra, B.J., 2017. Foundations of modern macroeconomics. Oxford
university press.
Levy, J.D., 2017. The return of the state? France’s response to the financial
and economic crisis. Comparative European Politics, 15(4), pp.604-627.
Romer, C.D. and Romer, D.H., 2017. New evidence on the aftermath of
financial crises in advanced countries. American Economic
Review, 107(10), pp.3072-3118.
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