Real-world economic issues

Journal entry questions are related to the application of the key concepts you learn to the real-world economic issues. The questions contain key economic principles and ideas related to the Macroeconomics topics you are learning. Please feel free to express your perspectives and state how the economic principles and ideas affect your economic decision making process.

Title your Journal entry: Unit 4 Journal

It is customary for the News media to report about consumer confidence and investor confidence while discussing the national economy. How do you think the confidence of the economic agents affect the economy? From personal or work experience, state factors that could cause increase in consumer spending and investor investment. Do consumer and investor confidence trend reports affect your spending pattern? Explain.

The government purchases component of GDP does not include spending on transfer payments such as Social Security. GDP does not also include the value of used goods that are resold. Do you think such exclusion make GDP a less informative measure of economic well-being? What other production of goods and services do you think are excluded from the GDP? What is the impact of such exclusion on the economic welfare?

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Consumer and investor confidence is very important in enhancing economic growth. If the two economic agents do not have confidence in the economic policies, for example, they are bound to shy away due to panic. Consumer confidence affects consumer spending as do investor confidence which affects investment decisions (Ludvigson, 2004; Shiller, 2000). When consumer confidence is high it follows that they will spend more which positively……………………..

APA
362 words