Management
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Bog'liqJasurbek Giyosov Course work
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MINISTRY OF HIGHER EDUCATION, SCIENCE AND INNOVATIONS OF THE REPUBLIC OF UZBEKISTAN FERGANA POLYTECHNIC INSTITUTE MANAGEMENT IN PRODUCTION FACULTY “MANAGEMENT ” DEPARTMENT COURSEWORK FROM THE SUBJECT «MACROECONOMICS» TOPIC: __________________________________________ Student: ________________________ Teacher: ________________________ Fergana 2023 FERGANA POLYTECHNIC INSTITUTE "MANAGEMENT IN PRODUCTION" faculty "ECONOMICS" department "APPROVED" Head of the "Economics" department Giyosov.J__________ "____" ___________2023 PERFORMANCE OF COURSE WORK ASSIGNMENT _______________________________________________________________ (student's last name first name) 1. Topic of the course work : monetary and credit policy in the Republic of Uzbekistan 2. Initial basis for work: Laws, decrees and decrees of the President of the Republic of Uzbekistan,lectures, socio-economic literature on the selected topic, periodical Scientific articles and theses published in scientific publications, Republic of Uzbekistan Information of the Ministry of Economy and its territorial divisions, Uzbekistan Statistical collections of the State Statistics Committee of the Republic of Uzbekistan, official website site information. 3. Content of the explanatory part _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 4. List of required drawings _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 5. Schedule of course work
Date of assignment: "_____"_________________2023y. The date of submission of completed coursework is "_____"_______________ 2023y. Head of course work __________ ____________________________ (signature) (name) I received the assignment __________ ____________________________ (student's signature) (name) "______" ______________2023y. Head of department _________ ______________________ (signature) (name) REVIEW 1. Relevance and content of the work_________________________________________ _____________________________________________________________________________________________________________________________________________________________________________________________________________________ 2. Description of the sections of work_________________________________________ _____________________________________________________________________________________________________________________________________________________________________________________________________________________ 3. Positive aspects of work_________________________________________________ _____________________________________________________________________________________________________________________________________________________________________________________________________________________ 4. Negative aspects of work_________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 5. Formalization of the explanatory part_______________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 6. Formalizing the graphic part of the work____________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Conclusions__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _______________________________________________________________________ Reviewer _______ __________________________ (signature) (surname, first name, second name) "_________"________________________2023. Theme: Ways to stimulate aggregate demand and aggregate supply Plan:
Introduction………………………………………….. What are aggregate demand and aggregate supply?.... How to promote aggregate demand?............................ Methods of increasing aggregate supply……….……. Aggregate demand and aggregate supply in terms of Uzbekistan…………………………………………… Conclusion …………………………………………... References…………………………………………… Introduction Stimulation of aggregate demand and supply plays a critical role in the contemporary global economy. Today, nations worldwide are striving for sustainable economic growth and development. The aggregate demand and supply are the two cornerstones of macroeconomic analysis and policies that aim to achieve this goal. Aggregate demand focuses on the total amount of goods and services demanded by households, firms, and the foreign sector in an economy. While aggregate supply refers to the total amount of goods and services that producers are willing and able to sell at a particular price point. In tandem, these two concepts form the basis for modern macroeconomic policies that aim to stimulate economic growth and reduce economic instability. In today's world, where economies are interdependent and interconnected, the need to stimulate aggregate demand and supply is paramount. The economic slowdown, financial crises, and downturns can have far-reaching implications on not only the concerned nation's economy but on the global economy as well. Hence, policymakers need to take a proactive approach to maintain aggregate demand and supply levels to stabilize the economic situation and foster sustainable growth. Therefore, this course work will delve deeper into the importance of stimulating aggregate demand and supply in the modern world. The importance of macroeconomic policies in stabilizing the economy, and how effective demand and supply-side policies can affect economic growth and development, will also be discussed. This exploration will aid policymakers and stakeholders in identifying the essential policies and measures that are needed to create a stable and prosperous global economy. 2. What are aggregate demand and aggregate supply? Aggregate demand (AD) and aggregate supply (AS) are the two most significant macroeconomic concepts used to explain the workings of the economy and to formulate economic policies. Both concepts are essential for several reasons, such as controlling inflation, addressing unemployment, promoting economic growth, and understanding the business cycle. Definition of Aggregate Demand: Aggregate demand refers to the total value of goods and services that consumers, businesses, and governments are willing to buy at different price levels in a given period. In other words, it's the total value of all the goods and services that people want to buy in an economy. The aggregate demand curve (AD curve) shows how prices and quantities move together, with quantity demanded decreasing as prices go up and increasing as prices go down. A. Components of Aggregate Demand: There are four components of aggregate demand: a. Consumption (C): The total spending by households on goods and services. b. Investment (I): The amount businesses invest in capital goods such as machinery, equipment, and buildings. c. Government Expenditure (G): The amount that governments spend on goods and services, such as health care, education, and defense. d. Net Exports (NX): This is the difference between the value of exports and imports and determines how much the country sells to or buys from other countries. B. Factors that Affect Aggregate Demand: Several factors affect the aggregate demand of an economy, including: a. Interest rates: Lower interest rates make borrowing cheaper for both consumers and businesses, leading to more spending. b. Disposable income: Higher disposable income means consumers have more money to spend, and higher disposable income leads to more consumption. c. Expectations: If people expect the economy to do well, they're more willing to spend. Definition of Aggregate Supply: Aggregate supply refers to the total amount of goods and services an economy produces and supplies at a particular price level within a specific period. In general, aggregate supply is the sum of all the production made in an economy. The aggregate supply curve (AS) shows how much businesses are willing to supply at different price levels. A. Components of Aggregate Supply: There are two components of aggregate supply: a. Short-run Aggregate Supply (SRAS): This component is affected by changes in the prices of the factors of production, such as labour, capital, and raw materials. b. Long-run Aggregate Supply (LRAS): This component describes the maximum output an economy can produce when all its resources are fully employed in the long run. It's determined by factors such as new technology, labour force skills and education, and investment in capital goods. B. Factors that Affect Aggregate Supply: Several factors affect the aggregate supply of an economy, including: a. Changes in the price of raw materials, labour and capital. b. Technological improvements: Better technology can lead to increased productivity, which can shift the SRAS curve to the right. c. Education and training: A better-trained workforce can lead to increased productivity and can shift the SRAS curve to the right as well. Aggregate demand and aggregate supply are the two fundamental concepts that govern the workings of the modern economy. Understanding these two concepts and their various components and factors that influence them can provide policymakers with the necessary tools to manage and stabilize the economy and promote economic growth. Economists use various models and tools to analyze the relationship between aggregate demand and aggregate supply, such as the Keynesian model, the classical model, and the neoclassical synthesis model. These models help policymakers to understand how changes in government policies or external shocks can affect the overall level of economic activity in an economy. 3. How to promote aggregate demand? Understanding the interplay of economic factors that help increase demand can allow small businesses to plan for potential growth and future opportunities. Aggregate demand relates to the total amount of goods demanded by consumers in an economy over a specified period of time. It also is a reflection on the economic power of consumers. Economic factors that impact a large number of consumers in a positive manner increase customer purchases and aggregate demand. An increase in aggregate demand refers to the observed positive change in the total demand for the finished goods and services that an economy produces at a specific time. Demand in economics is the number of goods and services a consumer is willing to pay for at a particular period. Aggregate demand (AD) monitors the goods that consumers demand at possible price levels. That means it studies consumers' reactions to minor changes in the prices of goods and services. When calculating aggregate demand, you typically consider various components, including customer or consumer goods, capital goods, government spending, investment spending, imports, and exports. There are few ways to increase aggregate demand: A) Interest rates help to establish how much consumers pay to borrow. When interest rates are low, consumers tend to purchase a higher volume of goods. As lower interest rates decrease monthly payments, consumers make larger purchases, such as cars and homes, that require loans. Increases in purchases of lower cost goods also are expected. As interest rates decrease, credit-card financing rates are lower and consumers have more disposable income because of lower interest rates on variable rate loans. When the Federal Reserve cuts interest rates, banks and financial institutions typically respond with a similar decrease in the rates offered to borrowers. A decrease in interest rates typically leads to a short-term increase in aggregate demand. B) Decrease in Taxes: Reducing taxes increases the amount of available cash that consumers can use to purchase goods and services. The more cash consumers have, the more purchases they are likely make. As consumers in a country increase spending, it directly increases aggregate demand. Tax cuts could decrease individual income taxes, sales taxes or property taxes. C) International involvement: Increases in foreign-based purchases and direct investments can lead to an increase in aggregate demand. Variations in exchange rates can cause the price of foreign-made goods to be cheaper than domestic products. If consumers in another country demand more goods from abroad, their purchases increase aggregate demand in the country where the goods are obtained. The purchases also increase the available cash in the supplying country, which leads to greater consumer spending and an additional increase in aggregate demand. Money also can come in the form of direct investments into companies or raw materials. D) Government expenditures: An increase in government spending on goods and services can increase overall economic demand. The infusion of capital into the economy through government spending leads to increased financial resources in the private sector that injects financial resources into the hands of consumers. When consumers have more disposable cash, aggregate demand increases. Government spending can be for the purchase of goods or services from domestic companies. E) Credits, interest rate: Credit plays an important factor in consumer purchasing power. Consumers typically use credit to purchase big-ticket items in the absence of adequate cash. Credit is a double-edged sword in the purchasing power process. While consumers will be able to purchase more goods using credit, once the available credit decreases, consumers must repay the creditor. This creates higher purchasing power early on and can reduce purchasing power later, since consumers may not have enough cash to repay credit balances and continue to make future purchases. Interest rates work in tandem with credit in purchasing power analysis. Consumers using credit for various purchases usually must repay creditors with interest. High interest rates reduce consumer purchasing power because more capital will be spent on repaying interest along with the initial credit balance. F) Inflation Inflation is commonly defined as too many dollars chasing too few goods. This phenomenon can relate to the natural growth of a free-market society or a nation’s monetary policies. Inflation increases consumer prices over a period of time and reduces consumer purchasing power. Consumers living in economies of high inflation must use more dollars to purchase a basic amount of goods. Inflation also can reduce the amount of money consumers earn from saving money and generating passive income through various business or economic investments. G) Change in average income An increase in aggregate demand is often the direct result of a positive change in income levels. A consumer that earns more money has more cash to spend. For example, if an employee gets a promotion and their salary increases, they may demand items they couldn't previously afford, such as a house or car. For the economy to benefit from an increase in average national wealth, it's essential that consumers spend the money they earn rather than put it in savings. 1.1.1 Graph Methods of increasing aggregate supply A shift in aggregate supply can be attributed to many variables, including changes in the size and quality of labor, technological innovations, an increase in wages, an increase in production costs, changes in producer taxes, and subsidies and changes in inflation. Some of these factors lead to positive changes in aggregate supply while others cause aggregate supply to decline. For example, increased labor efficiency, perhaps through outsourcing or automation, raises supply output by decreasing the labor cost per unit of supply. By contrast, wage increases place downward pressure on aggregate supply by increasing production costs Similarly, technological innovations can increase aggregate supply by improving production efficiency, while an increase in production costs, such as an increase in the price of raw materials, can decrease aggregate supply. Changes in producer taxes and subsidies can also affect aggregate supply, with lower taxes and higher subsidies increasing supply and higher taxes and lower subsidies decreasing supply. Finally, changes in inflation can affect aggregate supply by influencing the cost of production and the willingness of firms to invest in new capital. Overall, shifts in aggregate supply are complex and multifaceted, reflecting the interplay of many different economic variables. In the short run, aggregate supply responds to higher demand (and prices) by increasing the use of current inputs in the production process. In the short run, the level of capital is fixed, and a company cannot, for example, erect a new factory or introduce a new technology to increase production efficiency. Instead, the company ramps up supply by getting more out of its existing factors of production, such as assigning workers more hours or increasing the use of existing technology. In the long run, however, aggregate supply is not affected by the price level and is driven only by improvements in productivity and efficiency. Such improvements include increases in the level of skill and education among workers, technological advancements, and increases in capital. Certain economic viewpoints, such as the Keynesian theory, assert that long-run aggregate supply is still price elastic up to a certain point. Once this point is reached, supply becomes insensitive to changes in price. Let's imagine an economy where the aggregate supply is determined by the availability of resources, technology, and the willingness of firms to produce. Suppose there is a sudden technological breakthrough, allowing firms to produce goods more efficiently. This technological advancement increases the productivity of businesses, leading to a shift in the aggregate supply curve to the right. As a result, firms can produce and sell more goods and services at every price level, increasing overall output and potential economic growth. On the other hand, if there is a shortage of resources or an increase in production costs, the aggregate supply curve might shift to the left, limiting the economy's ability to produce and potentially leading to lower output levels. Aggregate supply, which represents the total quantity of goods and services an economy produces, is influenced by various factors called determinants of aggregate supply. Factors affecting aggregate supply are categorised in the following groups: changes in commodity prices, changes in nominal wages, changes in productivity, changes in inflation expectations, and changes in resource availability. Changes in nominal wages Nominal wages, the wages received by workers in current dollars, play a vital role in determining aggregate supply. When nominal wages increase, businesses face higher labor costs, which can reduce their profitability and result in a decrease in aggregate supply. Conversely, stable or decreasing nominal wages can help control costs and potentially contribute to an increase in aggregate supply. Government policies, such as minimum wage regulations, can directly influence nominal wages and impact aggregate supply. For instance, a mandated increase in the minimum wage may raise labor costs for businesses and lead to a reduction in their aggregate supply. Changes in productivity. Productivity growth, driven by factors like technological advancements and efficiency improvements, significantly impacts aggregate supply. Higher productivity allows businesses to produce more output with the same amount of resources, leading to an expansion in aggregate supply. Technological innovations, automation, and streamlined processes can enhance productivity, enabling businesses to increase their supply of goods and services. Conversely, a decline in productivity growth can limit an economy's production capacity and result in a decrease in aggregate supply. For example, the development and widespread adoption of 3D printing technology have significantly increased productivity in various industries, allowing for on-demand production, customization, and reduced production costs Changes in inflation expectations. Inflation expectations, which reflect anticipated future inflation rates, can influence aggregate supply. High inflation expectations can lead to changes in behavior, with workers demanding higher wages to keep pace with rising prices. This increase in labor costs can raise business production costs and potentially reduce aggregate supply. Conversely, if inflation expectations are low or stable, businesses can make more confident long-term plans, potentially supporting an expansion in aggregate supply. Changes in resource availability. The availability of resources, such as natural resources and capital, is a crucial determinant of aggregate supply. An increase in resource availability can expand an economy's production potential and lead to an increase in aggregate supply. Conversely, a decline in resource availability can limit production capacity, potentially resulting in a decrease in aggregate supply. For example, the depletion of fish stocks due to overfishing can constrain the aggregate supply of the fishing industry and related sectors. Understanding the interplay between changes in commodity prices, nominal wages, productivity, inflation expectations, and resource availability provides valuable insights into the dynamics of aggregate supply. Various external forces, including government policies, technological advancements, and the availability of resources influence these factors. By comprehending these influences, policymakers can make informed decisions to support economic growth and stability. Movement along the supply curve occurs when the overall price level at which the product is sold changes, whilst other factors like production costs, labour productivity, and technology remain constant. Let’s assume that a UK perfume company has its production unit in the UAE. The sale price of the perfume is £100 and the production cost according to the contract is £30 for the next year. So the profit for the company is £70. However, there is an overall surge of 1% in the UK price level, which also increases the selling prices of perfumes to £101. Since there is a contract for production at £30 for the next year, the production cost will remain the same. This will increase the profit margin for the UK perfume company by £1. This would result in UK companies taking advantage of the price increase by temporarily increasing their supply, leading to a movement along the supply curve. 1.1.2 Graph Statistical data of aggregate demand and aggregate supply of Uzbekistan National Accounts Download 146.2 Kb. Do'stlaringiz bilan baham: 
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