Aggregate Demand and Supply
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Aggregate Demand and Supply
Factors affecting Aggregate Demand & Supply
Curated by Bruce Fellowes
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Rescooped by Bruce Fellowes from Microeconomics: Pre-U Economics
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Supermarkets and suppliers warn over £15bn Sainsbury's-Asda deal

Supermarkets and suppliers warn over £15bn Sainsbury's-Asda deal | Aggregate Demand and Supply | Scoop.it
Supermarkets and suppliers have warned the competition watchdog that Sainsbury’s £15bn tie-up with Asda could reduce choice and bump up prices at the checkouts.

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Graham Watson's curator insight, June 19, 2:37 AM

The proposed Sainsbury-Asda merger has sparked concerns, not least among other supermarkets and suppliers. Both believe that such a merger is likely to reduce competition in both product and factor markets.

 

The companies themselves argue that any merger is likely to drive down prices, rather than increase them. But they would, wouldn't they?

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Paper straw factory to open in Britain as restaurants ditch plastic | Business | The Guardian

Paper straw factory to open in Britain as restaurants ditch plastic | Business | The Guardian | Aggregate Demand and Supply | Scoop.it
Production line in Ebbw Vale, Wales, to make straws for McDonald’s and others

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Graham Watson's curator insight, June 18, 11:45 AM

Markets working as they should.

 

Discuss.

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UK economy faces weakest growth since 2009, employers warn

UK economy faces weakest growth since 2009, employers warn | Aggregate Demand and Supply | Scoop.it
The British Chambers of Commerce says that the UK economy could see its weakest year since 2009.

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Graham Watson's curator insight, June 18, 11:35 AM

The British Chambers of Commerce with more good news: its growth forecast has been revised down, predicting the weakest growth since 2009.

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Banks close 2,900 branches in three years, says Which?

Banks close 2,900 branches in three years, says Which? | Aggregate Demand and Supply | Scoop.it
Consumer group Which? identifies 2,900 branch closures in three years, with RBS shutting most.

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Graham Watson's curator insight, June 15, 2:30 AM

This article highlights bank closures, and there's a point to be made about giving people the ability to access their money. But for me, it's another example of the decline of the high street.

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UK attracts £2.3bn in tech investments and 1,600 new jobs

UK attracts £2.3bn in tech investments and 1,600 new jobs | Aggregate Demand and Supply | Scoop.it
Investments, jobs and a fund to support UK firms expanding globally have been announced by Theresa May.

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Graham Watson's curator insight, June 13, 2:16 AM

At last, some good macroeconomic news: high levels of tech investment. Multiplier effects, and positive externalities, all round!

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Fall in UK wage growth reduces pressure for interest rate rise | Business | The Guardian

Fall in UK wage growth reduces pressure for interest rate rise | Business | The Guardian | Aggregate Demand and Supply | Scoop.it
Workers’ pay packets still increasing slowly despite fresh fall in unemployment

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Graham Watson's curator insight, June 12, 3:34 PM

Larry Elliott extrapolates from today's labour market data to look at the implications of this for the future conduct of monetary policy. His view, and that of markets, it would seem, is that rates aren't likely to be increasing in the immediate future. 

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Wage growth slows despite unemployment fall

Wage growth slows despite unemployment fall | Aggregate Demand and Supply | Scoop.it
Wage growth has slipped to 2.8%, official figures show, as unemployment falls.

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Graham Watson's curator insight, June 12, 3:26 PM

C'est plus ca change, as they say 'en France' and as far as regards unemployment in the UK. That said, the slowing of wage growth - even if it is only a blip - seems to contradict the idea that the labour market is tightening. 

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Pound falls on weak economic figures

Pound falls on weak economic figures | Aggregate Demand and Supply | Scoop.it
Weak figures prompt a fall in the pound as expectations of an imminent rise in interest rates recede.

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Graham Watson's curator insight, June 11, 9:45 AM

Ah, the interconnected nature of macroeoconomic variables: the pound falls in response to disappointing economic data, and the market view that there's little prospect of an immediate rise in interest rates.

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Manufacturing slump raises fears of longer economic squeeze

Manufacturing slump raises fears of longer economic squeeze | Aggregate Demand and Supply | Scoop.it

Factory output dropped 1.4pc in April compared to March, indicating the economy got off to a bad start to the second quarter of the year.


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Graham Watson's curator insight, June 11, 6:02 AM

Ooops.

 

Where is the UK economy heading? Discuss.

 

Could future examination questions really ask this sort of thing? Or might they look at how we use data.

 

The latest datasets about the UK economy aren't entirely one thing or another. Which reminds me of a New Zealand bowler, called Bob.

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European fruit pickers shun Britain

European fruit pickers shun Britain | Aggregate Demand and Supply | Scoop.it
British farmers say they are facing a shortage of workers to pick fruit and vegetables as recruitment companies say they can't find enough to fill vacancies.

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Graham Watson's curator insight, June 6, 7:14 AM

I suspect you heard it here first - however, that doesn't mean that it isn't newsworthy. Brexit has had an adverse effect upon the supply of European fruit pickers willing to come to the UK.

 

Of course, this has both Macro and Microeconomic effects - and I hope that you've already thought about what the likely implication of this is for the labour market for fruit pickers, and, by definition, the price of strawberries, for example. But what if the domestic labour supply is highly inelastic, because people don't wat to work as fruit pickers?

 

And what of the wider macroeconomic costs if this also applies to other sectors dependent upon migrant labour?

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What is the carbon bubble and what will happen if it bursts? | Environment | The Guardian

What is the carbon bubble and what will happen if it bursts? | Environment | The Guardian | Aggregate Demand and Supply | Scoop.it
As the world moves towards a low-carbon economy, fossil fuel investments worth trillions of dollars, from oil wells to cars, will lose their value

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Graham Watson's curator insight, June 5, 2:13 AM

This is classic Guardian: but it might be a significant issue, nonetheless. The so-called 'carbon bubble' reflects a view that lots of companies whose value rests on their current share price will see that value disappear as the global economy moves towards a low-carbon world.

 

If this happens quickly, it's argued that this could trigger a financial crisis. However, if it were slower, you'd expect that much of this will be obviated - the value of these companies is likely to be shifted to new, carbon-friendly companies.

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UK manufacturing has lost 600,000 jobs in a decade, says union | Business | The Guardian

UK manufacturing has lost 600,000 jobs in a decade, says union | Business | The Guardian | Aggregate Demand and Supply | Scoop.it
Every region has been hit, says GMB – with London, Scotland and north-west worst affected

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Graham Watson's curator insight, June 4, 2:21 PM

The changing nature of the UK labour market is flagged up by this Guardian article that highlights the fact that manufacturing employment has declined by 600,000. Of course, at the same time, the total number of jobs has increased, so it might be argued that this is of little consequence.

 

However, again, it's an interesting example of the importance of sources - this study was undertaken on behalf of a trade union, the GMB, who have a vested interest in the sector because it's among the most heavily unionised. 

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Five things to do with empty retail space

Five things to do with empty retail space | Aggregate Demand and Supply | Scoop.it
As the High Street comes under pressure and shopping habits change, what can be done to fill vacant shops?

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Graham Watson's curator insight, April 15, 4:56 AM
A fascinating look at the changing market dynamics of the High Street - with the seemingly ineluctable decline of retailing, this article considers where the High Street might go next. Apart from cafes, charity shops and mobile phone shops. 

Worth a read. But will it pan out this way? I suspect that tsome of these ideas have a very short shelf-life.
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Global debt has hit a high – can financial regulators cope? | Howard Davies | Business | The Guardian

Global debt has hit a high – can financial regulators cope? | Howard Davies | Business | The Guardian | Aggregate Demand and Supply | Scoop.it
IMF figures show the world is more indebted than during the financial crisis and needs more borrowing to create growth

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Graham Watson's curator insight, June 18, 11:48 AM

Howard Davies' Project Syndicate piece raises the spectre of yet another financial crisis, as global debt is higher than it was prior to the financial crisis, at 225% of global GDP.

 

He wonders whether this is sustainable and its implications, for both regulators, in the short term, and the global economy, more generally.

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UK debit cards transactions overtake cash for the first time | Business | The Guardian

UK debit cards transactions overtake cash for the first time | Business | The Guardian | Aggregate Demand and Supply | Scoop.it
Consumers used debit cards 13.2bn times in 2017, while the number of cash payments fell 15%

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Graham Watson's curator insight, June 18, 11:42 AM

This story in the Guardian caught my eye - it's about the fact that cash is no longer king: in 2017, we spent more via debit cards than in cash.

 

This has all sorts of implications, not least the fact that card payments have a lower opportunity cost, and this might encourage people to spend more than they can afford.

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AT&T completes its takeover of Time Warner

AT&T completes its takeover of Time Warner | Aggregate Demand and Supply | Scoop.it
The merger of the two giants could shake up the US media scene for years to come.

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Graham Watson's curator insight, June 15, 2:39 AM

Nothing to see here, officer.

 

Just a US mega-merger between two media giants, AT&T and Time Warner.

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Rising fuel prices spur inflation in May

Rising fuel prices spur inflation in May | Aggregate Demand and Supply | Scoop.it
Petrol and diesel prices rose at the fastest monthly rate since January 2011.

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Graham Watson's curator insight, June 13, 7:51 AM

The latest ONS inflation data for May reveal that inflation remains at 2.4%, largely as a result of rising fuel prices offsetting price falls elsewhere. What does this mean for interest rates?

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Petrol price levels cannot be justified says RAC

Petrol price levels cannot be justified says RAC | Aggregate Demand and Supply | Scoop.it
The group says prices should fall by 2p a litre, to reflect the falling wholesale prices of fuel.

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Graham Watson's curator insight, June 13, 2:14 AM

The RAC argues that the recent rise in petrol prices is excessive - but is rebutted by the fuel retailers association. A nice look at the factors underlying ostensibly simple D&S issues.

 

 

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Why aren't wages rising more quickly?

Why aren't wages rising more quickly? | Aggregate Demand and Supply | Scoop.it
The link between high employment and high wage increases is becoming frayed.

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Graham Watson's curator insight, June 12, 3:28 PM

Kamal Ahmed looks at the causes of the ongoing pay squeeze. C'est plus ca change encore, to continue a theme...

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Tesla to slash thousands of jobs in profitability drive

Tesla to slash thousands of jobs in profitability drive | Aggregate Demand and Supply | Scoop.it
Elon Musk says laying off almost one in ten workers is needed to cut costs and boost profitability.

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Graham Watson's curator insight, June 12, 3:24 PM

Is the journey towards the mass production electric car in danger of being parked? Tesla are proposing to lay off nearly one in ten on their workforce, suggesting that the company is inefficient. 

 

However, is this a fixed cost or a variable cost? And what effect would you expect this to have on productivity? And what about the profitability of the company? Lots of possible areas of interest - which makes for good economics in my book.

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Land Rover Discovery model moved to Slovakia from the UK

Land Rover Discovery model moved to Slovakia from the UK | Aggregate Demand and Supply | Scoop.it
The car firm said its Solihull factory would now be used to build new Range Rovers and Range Rover Sports.

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Graham Watson's curator insight, June 11, 10:28 AM

Bad news for the local economy - with JLR moving the manufacture of the Land Rover Discovery to Slovakia, from Solihull. Negative multiplier, anyone?

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Heathrow airport’s polluting new runway is a macho folly | Simon Jenkins | Opinion | The Guardian

Heathrow airport’s polluting new runway is a macho folly | Simon Jenkins | Opinion | The Guardian | Aggregate Demand and Supply | Scoop.it
This go-ahead is the worst decision taken by a UK government in modern times, says Simon Jenkins, Guardian staff columnist

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Graham Watson's curator insight, June 8, 12:12 PM

Simon Jenkins argues against the expansion of Heathrow.

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Amazon to create 2,500 jobs in nationwide hiring spree

Amazon to create 2,500 jobs in nationwide hiring spree | Aggregate Demand and Supply | Scoop.it
Amazon is ploughing further investment into the UK by creating 2,500 jobs in a nationwide hiring spree.

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Graham Watson's curator insight, June 6, 3:48 PM

Good news for the economy: Amazon is still hiring. Another 2,500 jobs - but might you question the types of job being created? And are they indicative of underemployment?

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UK construction industry dealt blow by high street closures | Business | The Guardian

UK construction industry dealt blow by high street closures | Business | The Guardian | Aggregate Demand and Supply | Scoop.it
Builders get back to work after bad weather earlier this year, but new orders continue slide

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Graham Watson's curator insight, June 5, 2:04 AM

More on the current slowdown in the construction sector, suggesting that the state of the high street has a role to play.

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Airlines slash profit forecast as costs soar

Airlines slash profit forecast as costs soar | Aggregate Demand and Supply | Scoop.it
The industry's trade body cuts its 2018 forecast for airline profits amid rising fuel and labour costs.

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Graham Watson's curator insight, June 4, 8:37 AM

An excellent prompt - can you think about how this news might affect a costs/revenues diagram, and potentially the profits of airlines?

 

You might also think about how market structure is relevant here, as well as trying to disaggregate the effects on the sector more generally. For instance, why might larger airlines be better able to cope with rising costs than smaller competitors?

 

Lots to ponder, not least the difference between variable and fixec costs.