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The Economics of Europe and US

   

Added on  2020-01-15

6 Pages1954 Words148 Views
ECONOMICS

Table of ContentsECONOMICS.......................................................................................................................................1Introduction..........................................................................................................................................3Productivity growth and change of living standard of Europe and US in terms of..............................3Shift in demand and supply of labour (Europe)...............................................................................3Shift in demand and supply of Labour (US)....................................................................................4Effect of institutions and polices on the productivity and living standard of Europe and US.........5Conclusion............................................................................................................................................5REFERENCES.....................................................................................................................................6

INTRODUCTIONEconomics is basically refers to the science which determine the production, distribution andconsumption of goods and services (EU-U.S. Economic Ties: Framework, Scope, and Magnitude.2014). The entire report is based on productivity growth and standard of living of Europe andUnited States. Apart from this the report also explains that the effect of demand and supply onproductivity growth of Europe and United States and what will be the effect of institutions andpolicies of country on the standard of living and overall growth of the country. Other than this, thereport contains a detailed understanding of economic conditions of both Europe and United States.PRODUCTIVITY GROWTH AND CHANGE OF LIVING STANDARD OFEUROPE AND US IN TERMS OFShift in demand and supply of labour (Europe)The composition of growth of GDP in Europe and its member countries facing a breakdown inaverage GDP growth rates by both into contribution from economic sector and contribution ofemployment and labour productivity. In current decades Europe has facing low productivity growthin labour (Suzuki and et. al., 2016). Apart from this, manufacturing growth in output also facingsecular decline in the sector's share in total employment. On contrary to this, market services of thecountry are increasing over time and currently employ between 40-50% of the total workforce inadvance economics. Demand supply of the country has major role in productivity growth of Europe.As, demand increases the productivity of the country also increases with that on contrary to this ifdemand of the country decreases it results in decrease of economic productivity of the country. A major shift in demand of the country will impact on its overall productivity as, if there isless demand of the labour this will result in low productivity of the country (Guerzoni and Raiteri,2015). As, demand of labour increases it shows that there is need of labour in context to highproductivity of the country. This shift in demand and supply play a critical role in altering marketequilibrium price points and volume for products and services. Similarly shift in supply will alsoaffect the country in terms of standard of living, it will affect the availability of product in marketwhich result in decrease in supply of the products. The main reasons of shift in demand and supplyof labor are as follows:Wage rate: Wage rate of Europe is constantly changing over time which will affect thelabour workforce and changing rate of wage will affect the demand of labour in Europe which willresult in decrease of standard of living of workers. Other than wage rate, there is an another factorwhich is advancement of technology against using man force as labour. Low rate of wage is giventop the labour as there is less need of worker because they are using highly innovative techniques inevery field which reduces demand of labour (Gül and Çağatay, 2015).Innovation of high technology: new innovations of technology in Europe will affect

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