Analyzing Policy Response to Increasing Prices of Products and Stock Market Boom in Advanced Economies

Global
Macroeconomic

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Prices of products, such as oil, are increasing due to continued expansion in new &
developing economies. Analyse the policy response for this respective issue...........................3
Stock market boom in advanced economies. Discuss the policy response for this issue...........6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Macroeconomics is the branch of study which deals with the structure, behaviour,
decision-making and the performance of the economy as a whole. There are basically two types
of macroeconomics research that are short-term economic growth and long term economic
growth. There is unequal economic development which is being faced by the country and the
developing countries must enlist the concerned issues so that they can ensures the long-term
economic growth in the market. Price distortions, insufficient domestic resources, government
spending leads to discourage the overall stability of the economy(Mo, Gupta and Singh, 2018).
There are more aspects that includes mounting debt level, level of financial resilience and
increasing rate of climate change which is hurdling the overall economic growth of the economy.
These all factors contribute to the macroeconomics market's equilibrium. These are the factors
which ensures the expansion of the market such as rising prices of oil and the boom in the stock
market in the advance economy also understand in the report. With this, it also cover the merits
of potential policy and its response to the policy maker who are operating in macroeconomics
with the help of aggregate demand and supply.
MAIN BODY
Prices of products, such as oil, are increasing due to continued expansion in new & developing
economies. Analyse the policy response for this respective issue.
Economic growth refers to the increase in the production of products and services in
compared to the particular period of time to another. This basically measures the consumption of
goods and services in the economy as a whole. The economic growth is being estimated with the
help of real and nominal terms. In past times, gross national product (GNP), is the total market
value of finished goods and services that is being produced by the nation during the particular
period of time. It is not definite that aggregate gains in the entire production within the economy
and nor associated with the marginal productivity that helps in increasing the income and
promoting consumer to spend more and purchase as per their choices. In such a way, they are
putting themselves towards quality of life.
It is analysed from the the Focus Economics's projection for upcoming 5 years that for
example, India is the fastest growing economy in the world and the emerging & developing
market across the globe. Last spring, there are many countries which is badly impacted by the