For example, the Organisation of Arab Petroleum Exporting Countries (OAPEC) imposed an oil embargo against the United States, the United Kingdom, the Netherlands, Japan and Canada in October 1973 which led to a large decrease in the supply of oil resulting in a sharp rise in the prices and hence a substantial rise in the cost of production in Singapore.
Aggregate supply is the total supply of goods and services in the economy over a period of time and is determined by the production capacity and the cost of production in the economy.
The focus of the kinship course is on kinship practice and cultures of relatedness as the product of daily living within a particular culture and social structure.
We look at problems in kinship theory: These problems are addressed by exploring theoretical arguments in relation to particular ethnographies.
Aggregate demand is the total demand for the goods and services produced in the economy over a period of time and is comprised of consumption expenditure, investment expenditure, government expenditure on goods and services and net exports.
Essay On Production Consumption And Exchange Cheerleading Essay
A decrease in exports will lead to a decrease in aggregate demand which will induce firms to decrease production resulting in a decrease in national output.
When firms decrease production, they will employ less factor inputs from households and hence will pay them less factor income which will lead to a decrease in national income.
In the above diagram, a decrease in aggregate demand (AD) from AD.
For example, the Singapore government implemented the Resilience Package which included an increase in expenditure on infrastructure to increase economic growth in the 2008-2009 Global Financial Crisis.
It can also increase disposable income to increase consumption expenditure by decreasing direct taxes such as personal income tax and corporate income tax or increasing transfer payments.