Chapter 3 Assessing Economic Conditions

Portion of Graphic from pg 72 will go here Learning Objectives Assessing Economic Conditions GrowthInflation Government Interest Rates Market Prices

Assessing Economic Conditions Portion of Graphic from pg 72 will go here The Key Decisions in Running a Business

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Economic Growth Growth Inflation Interest Rates Market Prices Government Weak Strong Recession

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Can you give an example to express the ripple effect?

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Growth Indicators Growth Inflation Interest Rates Market Prices Government G.D.P. Production Aggregate Expenditures Spending

China has been the fastest-growing major nation for the past 30 years with an average annual GDP growth rate above 10%.China's per capita income has likewise grown at an average annual rate of more than 8% over the last three decades drastically reducing poverty, but this rapid growth has been accompanied by rising income inequalities.fastest-growingper capita incomeincome inequalities

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Unemployment Growth Inflation Interest Rates Market Prices Government Structural Frictional Cyclical Seasonal

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Which industry is more sensitive to economic growth than others? Food industry Real estate industry Pharmaceuticals industry Construction industry Jewelry industry Auto industry

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Inflation $ $$$$$ Growth Inflation Interest Rates Market Prices Government

Assessing Economic Conditions Portion of Graphic from pg 72 will go here If in 1995, you put RMB150,000, which was enough to pay for an apartment of 100 ㎡, in the bank. In 2005, you money increased to 150,000+interests. Was it enough to pay for a 100 ㎡ apartment which cost 300,000?

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Types of Inflation Growth Inflation Interest Rates Market Prices Government Demand-PullCost-Push

Assessing Economic Conditions Portion of Graphic from pg 72 will go here What’s the ripple effect of the increase of oil/rice/pork price? Why do we need to control the over-heated economy?

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Interest Rates Growth Inflation Interest Rates Market Prices Government

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Interest and Revenue Growth Inflation Interest Rates Market Prices Government Interest Rates (%)

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Explain how interest rate influence the performance of real estate companies. If the government is going to increase the interest rate, is it a good news or bad news to the stock market?

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Determining Market Prices Growth Inflation Interest Rates Market Prices Government Insert Exhibit 3.4 (only top portion)

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Determining Market Prices Growth Inflation Interest Rates Market Prices Government Insert Exhibit 3.4 (only bottom graph portion)

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Demand Schedule Growth Inflation Interest Rates Market Prices Government Price Quantity (S1) (D1) (D2) P1 = $ 2,000 P2 = $ 2,500

Assessing Economic Conditions Portion of Graphic from pg 72 will go here The strong demand for houses due to large population and industrialization pulls up the housing price.

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Supply Schedule Growth Inflation Interest Rates Market Prices Government Price Quantity (S1) (D1) (S2) P1 = $ 2,000 P2 = $ 1,500

Assessing Economic Conditions Portion of Graphic from pg 72 will go here The cars/computers will become cheaper and cheaper. Why?

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Influencing Market Prices Growth Inflation Interest Rates Market Prices Government Production Expenses Consumer Income Consumer Preferences ) ) ) ) ) )

Assessing Economic Conditions Portion of Graphic from pg 72 will go here The market price is mainly determined by demand supply Consumer income Consumer preference Production expenses

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Monetary Policy Growth Inflation Interest Rates Market Prices Government FOMC The Fed Reserve System Money supply Interest Rates

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Fiscal Policy Growth Inflation Interest Rates Market Prices Government Excise Tax Personal Income Tax Corporate Tax Budget Deficits

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Explain the relationship between federal budget deficit and interest rate.

Assessing Economic Conditions Portion of Graphic from pg 72 will go here Government Influence Growth Inflation Interest Rates Market Prices Government Insert Exhibit 3.8