TA26 MAEC Group 2 Project by Terrence Tan Kang Hao https://padlet.com/Terrencetan/cmmihj5gjk65 Terrence (Kang Hao), Theodore, Spencer, Wui Fan , Vidor & Angelika en-us 2017-10-30 03:33:41 UTC 2024-10-28 23:16:19 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Prizecup.png Macroeconomics Group Project (15%) Terrencetan https://padlet.com/Terrencetan/cmmihj5gjk65/wish/203730569 Objective: 
The objective of this project is to train you to analyze the economy of a country using the concepts learnt in Macroeconomics. The basis of your research should be news articles(s) and the latest developments of that particular economy.

Assessment:
This group project carries a 15% weightage towards your final grade; of which, 5% will be from your submission on Padlet and 10% from your project report.

Instructions:
Based on United Kingdom, each group shall select a maximum of 3 news articles that are related to macroeconomics concepts taught so far. The articles must be dated after 31 August 2017. Please ensure that the chosen article(s) encompasses at least 3 topics with distinct economic issues that you could do your analysis on.]]> 2017-11-06 04:07:21 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/203730569 News Article 3 s10181800 https://padlet.com/Terrencetan/cmmihj5gjk65/wish/203731155 Interest Rates in UK
Over the past year, UK experienced a higher inflation rate than that expected of 2% by the relevant authorities. Therefore, we can also understand that this is due to a higher demand over supply for goods and services. We can understand that one means of accomplishing a lower level of inflation, the monetary policy employed, increasing interest rate, could be a means of solving it.

By increasing interest rate, it promotes saving as there is a higher interest rate for money that is kept in the bank as well as dissuade consumers from spending as the opportunity cost of spending is higher. Hence as consumption falls, Aggregate demand falls, leading to a lower consumer price index and a lower inflation rate]]> 2017-11-06 04:13:49 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/203731155 News Article 1 s10177551 https://padlet.com/Terrencetan/cmmihj5gjk65/wish/203733557
UK's GDP
In a developed country like UK, the service sector is the biggest component in the economy, compromising of almost 80% of the economy. Therefore, as the service sector had grown, so will the GDP.

The large proportion of the service sector in relation to the economy is a sign of high living standards. As it enables consumers to enjoy more leisure based service activities, such as tourism, sport and restaurant.

UK GDP has grown more than expected in the 3rd Quarter of 2017. The GDP has grown 0.4% in 3 months which can be attributed to the service sector which played the largest part in the growth. The manufacturing sector also played a big part in contributing to the growth of the GDP where it has been performing badly in the previous quarters. 

If these sectors continue to do well, the GDP growth will remain strong. If so,  firms will hire more workers and can afford to pay higher salaries and wages, which leads to more spending by consumers on goods and services.

Firms will also have the confidence to invest more when economic growth is strong, and investment lays the foundation for future economic growth.]]> 2017-11-06 04:37:47 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/203733557 Supporting Data 2 s10181800 https://padlet.com/Terrencetan/cmmihj5gjk65/wish/206136820 Employment in UK

This is the graph for the average change of the profit growth in UK business. Take note that it might just be from profit from acquisition  but it gives us a stronger understanding of the unemployment which was due to the lack of SKILLED workers and not due to the fall in demand for worker]]> 2017-11-13 09:10:50 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/206136820 News Article 2 vidorqazwsxedcrfv https://padlet.com/Terrencetan/cmmihj5gjk65/wish/206150652 Employment in UK
Unemployment rates in UK is currently at its lowest point since 1975 at 4.3%, compared to 4.9% last year.

As UK's economy is expanding and GDP is increasing, the demand of labour will increase to meet the increase in output. This will cause an increase in employment rate as there are more jobs, which leads to a lower unemployment rate.

Additionally, the number of people in UK that are currently economically inactive is at its lowest too. This means that many people need to work due to them needing money to support themselves. Hence, although many people are holding onto jobs, many of them are holding onto lower skilled jobs

This is common in third-world countries like India where people there are working to support their daily needs.

Despite the low unemployment rate, UK has not attained its full employment rate yet. The main factors could be due to structural and geographical unemployment.

As UK is becoming more service sector based, people in the other sectors have lost jobs due to the  fast changing nature of the economy. As a result, these workers have yet to find another job as they lack relevant skills.

Meanwhile, there are geographical  immobilities making it difficult for the unemployed to move to the south of UK, where more jobs are available. 

]]> 2017-11-13 09:59:42 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/206150652 Tutor's comments nmk https://padlet.com/Terrencetan/cmmihj5gjk65/wish/207508357 (1) On the right track. But which are your news articles that you would be using as the platform for your report? The one from Trading Economics is not considered a news article.
(2) You would need to develop your analysis further to show more depth. 
(3) Incorporate a few relevant graphs, diagrams and pictures to enhance the visual impact of your Padlet wall. 
(4) Please do some additional research so that your final report is not just a summary of the main points on the articles.

]]> 2017-11-16 03:05:48 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/207508357 Conclusion s10177551 https://padlet.com/Terrencetan/cmmihj5gjk65/wish/209216459 UK has been experiencing continuous GDP growth throughout the years. As their GDP increases, unemployment falls as the production of more goods and services gives way to more jobs available. This may be a contributing factor to why UK has hit its lowest unemployment rate of 4.3%. 
As unemployment decreases, it may seem like it is an improvement in terms of increasing purchasing power from the average households, however, from previous articles, we can see that though unemployment has fallen, however, the jobs taken by the average households are jobs that are not high paying jobs as they are not high skilled jobs. Hence as a whole, we can assume that there will not be a huge change in the purchasing power of the different households. Therefore, over the next few months to years, we can expect not much changes to the demand for the various goods and services provided.

However, we must also consider the impacts of the Brexit on the economy, it lead to a fall in investor confidence. Therefore because there is a loss in investor confidence, the investors will release all the Pounds(UK currency) into the market to reduce any losses they might sustain should they hold onto the currency. Because of the surge in supply of Pound, given that the demand for these currency does not change.The value for pounds will fall. This in turn leads to a weakening of Pound, which leads to it being more expensive to trade with trading partners from overseas but cheaper for them to trade with UK.

This lead to higher factor of production as the cost of purchasing the raw materials will  increase, leading to a cost push inflation.]]> 2017-11-21 18:25:44 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/209216459 Supporting Data 3 s10177551 https://padlet.com/Terrencetan/cmmihj5gjk65/wish/210042167 Unemployment rate in UK

The Unemployment Rate from the years 2009 to 2012 is gradually increasing more than the one the year 2007. However, the unemployment rate started decreasing continuously after the year 2012 till the year 2017.]]> 2017-11-25 15:23:54 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/210042167 Supporting Data 1 s10177551 https://padlet.com/Terrencetan/cmmihj5gjk65/wish/210049844 UK GDP growth rate]]> 2017-11-25 16:40:28 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/210049844 Supporting Data 4 s10181800 https://padlet.com/Terrencetan/cmmihj5gjk65/wish/211912200 Graph Description of UK Inflation]]> 2017-11-30 15:51:08 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/211912200 Flow of Our Report Terrencetan https://padlet.com/Terrencetan/cmmihj5gjk65/wish/212138459 1. Introduction

2. The Product of a Nation - GDP

3. Business Cycle & Unemployment

4. Inflation

5. Conclusion]]> 2017-12-01 03:20:43 UTC https://padlet.com/Terrencetan/cmmihj5gjk65/wish/212138459