Introduction
Understanding the key concepts of economics is important for everyone. These concepts provide recognition of the market trends that emerge in business and affect the choices in every purchase made. The article Understanding the Mechanisms of Economic Development by Angus Deaton provide key points that are relevant in economics. The four important economic points touch on the consumers and income, commodity prices, economic growth, and scarcity (Deaton, 2010).
Key points
The article explains that economic development differs from many fields since the consumers with low income will draw on all the branches of economics. The consumers in the article are people who use the goods or services and the young consumers usually have more lifetime resources than the older consumers.
The commodity prices are described to fluctuate. These world fluctuations in the prices of commodities bring challenges in macroeconomic management. Dynamics of the commodity prices characterizes long quiescence periods with upward flares and the downward plunges (Deaton, 2010).
According to the article, the concept of economic growth is strongly related to the savings. The economic growth increases the saving rate since there many savers than the dissevers. Economic growth will occur …show more content…
economy since it is the underlying force driving everything in an economy (News, 2015). Fortunately for economics, people are never satisfied. With high demand, the US would experience an economic expansion and growth since, without it, there would be no production. The Federal government of the US would also try to manage the demand with the aim of preventing a recession or inflation. The Policymakers of the US would boost the demand during a recession or subdue it during inflation. Boosting the demand can be done by cutting taxes, or giving subsidies while subduing the demand is done by raising taxes, cutting spending and withdrawing benefits and
Understanding the key concepts of economics is important for everyone. These concepts provide recognition of the market trends that emerge in business and affect the choices in every purchase made. The article Understanding the Mechanisms of Economic Development by Angus Deaton provide key points that are relevant in economics. The four important economic points touch on the consumers and income, commodity prices, economic growth, and scarcity (Deaton, 2010).
Key points
The article explains that economic development differs from many fields since the consumers with low income will draw on all the branches of economics. The consumers in the article are people who use the goods or services and the young consumers usually have more lifetime resources than the older consumers.
The commodity prices are described to fluctuate. These world fluctuations in the prices of commodities bring challenges in macroeconomic management. Dynamics of the commodity prices characterizes long quiescence periods with upward flares and the downward plunges (Deaton, 2010).
According to the article, the concept of economic growth is strongly related to the savings. The economic growth increases the saving rate since there many savers than the dissevers. Economic growth will occur …show more content…
economy since it is the underlying force driving everything in an economy (News, 2015). Fortunately for economics, people are never satisfied. With high demand, the US would experience an economic expansion and growth since, without it, there would be no production. The Federal government of the US would also try to manage the demand with the aim of preventing a recession or inflation. The Policymakers of the US would boost the demand during a recession or subdue it during inflation. Boosting the demand can be done by cutting taxes, or giving subsidies while subduing the demand is done by raising taxes, cutting spending and withdrawing benefits and