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Macro essay Essay Example

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Increase is normally measured in real terms (inflation-adjusted) so as to hinder the damaging upshot of inflation on the price of the products produced. In money matters, "economic growth theory" or just "economic growth" normally refers to growth of impending output, or, in other words, invention at "full employment". In the U., economic growth has helped reduce poverty. According to financial analysts in the region, growth does not mainly reduce poverty levels, but, without economic development, it is extremely tough to make any significant and sustained cut in poverty levels. This is predominantly significant in the U. since economic growth has also reduced unemployment in the nation. A sluggish economy, according to economists, leads to much greater rates of idleness, as well as social misery compared to a fast growing economy (Simmons, 2013). Also, the "Production possibility frontier" graph provided shows that economic growth causes the production-possibility frontier to shift outwards (grow).The negative side of economic growth is that it causes resource depletion. Resource depletion refers to the exhaustion or overexploitation of raw materials in any given region. Britain is an industrial country any they need an unending supply of raw materials in order to maintain their growth. This has made the nation exhaust a majority of their raw materials and is now seeking raw materials from other nations in order to maintain their high status.Low Inflation refers to an occurrence where the prices of goods and services (products) are not raising at a fast pace (Warsh, 2013). Such a situation is not that harmful for any financial system since it could be managed through the adoption of various measures, unlike high inflation. High inflation is more or less uncontrollable. Most economists have backed up this view since no financial system at the present age is free from inflation. Hence, it would be a matter of success if they could sustain the intensity of inflation at a lower rate. In the U., the financial recovery remains feeble and uneven. Local demands went up reasonably in 2012, but this was largely caused by a definite fall in goods exported out of the United Kingdom. Employment levels continued to grow powerfully; hence, the weakness of productivity hints that the financial crisis might still be pondering on the current efficient supply power of the

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References

Blanchard, O 2000, Macroeconomics, Prentice Hall, Upper Saddle River, NJ.

Friedman, M 2011, Positive economics, University of Chicago Press, London.

Mises, L 2009, Theory of money and credit, Yale University Press, Yale.

Simmons, K 2013, ‘United Kingdom employment rate’, U.K. Journal of Business Management vol. 4, no. 3, pp 56.

Warsh, D 2013, Knowledge and the wealth of nations, Norton Press, London.

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