Investment Surges in Renewable Energy

Trends in 2010 have lead to an increase in investment for renewable energy by around 34%. An investment in renewable energy by a government would affect the economy’s aggregate supply (AS). This is because with renewable energy, there will be a decrease in production costs, a factor of the AS curve. By saving costs in the production phase by reusing resources, forms will have more capital to spend of increasing production and expanding. This will lead to a shift to the right for the AS curve as the total production possibility of the economy increases. This shift will lead to a drop in average prices and an increase in Real GDP as the economy produces more. This decrease in average prices can be seen in Figure 1 as the shift from P to P1. Additionally, the increase in Real GDP can be seen as a shift right from Y to Y1. This will most likely lead to an expansion in economic capacity in the long run as there is less spending on long term production costs, leading to an increase in production and therefore in a rise in Real GDP in the economy.

 

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Our Best Countries Reflection

Recently I was given the opportunity to work in a group with three of my classmates in our IB HL I Economics class. In this group we had to discern major difference between the world’s top countries both economically and socially in order to determine which country we thought was the top country in the world for living in. In making this decision, we were able to narrow our choice down to four countries: Switzerland, Singapore, Qatar and Norway. From these four countries we devised a set of four criteria in order to determine the countries international ranking. These included Environment rating, Economic Performance, Education, and Disparity. From here we assembled a series of graphs into a powerpoint presentation which we shared with the rest of our class. I was very proud of this presentation, as I did most of the work on it visually. In doing this I believe I was able to make a powerpoint that was easy to present and understand and that was very effective in aiding our groups presentation.

 

 

In gathering and presenting this information I was able to gain an interesting perspective when looking at the work of one of the other groups presenting. As they determined that Australia was the world’s best country, I was interested in how they ranked and judged their countries. Basing their decision around different criteria than ours, I was very interested in seeing how Health, Education and Economics determined their judgement in viewing Australia as the world’s top country. Additionally, I found that they determined Australia was the world’s top country in a way that was more socially¬†implicative¬†than economically reliant. While this is of course and acceptable and interesting view, I found that it ultimately strayed from the idea of this being an economica presentation.