Causes and Effects of Urban Sprawl A rise in the population and changes in the income of an average American family, has led to an increase in urban sprawls. Some view it as an opportunity to lead a better life in larger homes, away from the congested city life, while some think it burdens the economy and the environment. Let us look into this issue in greater details through this OpinionFront article. OpinionFront Staff Urbanization refers to the migration of the population from rural regions to towns and cities.
Graph showing increase in AD 1. Factors which affect AD Lower interest rates — Lower interest rates reduce the cost of borrowing and so encourages consumer spending and firms to invest. Lower interest rates also reduce mortgage payments and so increase the disposable income of consumers.
Higher real wages increase disposable income and encourage consumer spending. Increased government spending G. A fall in the value of the exchange rate e. Pound Sterling makes exports cheaper and increases the quantity of exports X. A depreciation also makes imports more expensive, reducing quantity of imports and making domestic goods relatively more attractive Confidence.
Increased consumer confidence encourages households to spend by either running down savings or taking out more personal credit. It enables higher spending C.
Lower income tax will increase the disposable income of consumers and increases consumer spending C. A rise in the price of houses creates a positive wealth effect. Homeowners who see a rise in the value of their houses will be more willing to spend remortgaging house if necessary Financial stability.
If there is financial stability and banks are willing to lend, then firms will be more willing to invest and investment will increase aggregate demand. Long-term economic growth This requires an increase in the long run aggregate supply productive capacity as well as AD.
Diagram showing long-run economic growth LRAS or potential growth can increase for the following reasons: Increase in working population, e. Increase in labour productivity, through better education and training or improved technology.
For example, finding oil reserves will increase national output Technological improvements to improve the productivity of capital and labour e. Microcomputers and the internet have both contributed to increased economic growth.
In the future, economic growth may come from new technology such as Artificial intelligence AI which enables robots to take the place of human workers. Other factors affecting economic growth Economic and political stability. Stability is important for reassuring firms it is a good idea to invest in increasing capacity.
If we see a rise in uncertainty, confidence tends to fall and this can cause firms to delay investment. Low inflation is a good climate for encouraging business investment. High inflation increases volatility.
Periods of economic growth in UK s boom In the s, the UK achieved rapid rates of economic growth, this was caused by Cuts in income tax, increasing disposable income Boom in house prices, which caused a positive wealth effect Rise in confidence, especially amongst south Low real interest rates See: UK economy in the s Period of great moderation The longest period of economic expansion on record was from — This period of economic growth was caused by Low global inflation, which created a period of economic stability.
A rise in house prices, which helped increase consumer spending. Growth in productivity, helped by supply-side reforms. Inward investment helped create new jobs and better labour relations. Global recession causing fall in export spending.Trade Deficit, Its Causes, Effects, and Role in the Balance of Payments.
Share Flip Pin That's despite the fact the earnings benefit the company's stock price and the taxes increase the country's revenue stream. Effects Initially, a trade deficit is not a bad thing. Nov 20, · Global Warming: News, Facts, Causes & Effects. Global warming is the term used to describe a gradual increase in the average temperature of .
Overpopulation is an undesirable condition where the number of existing human population exceeds the carrying capacity of Earth.
Overpopulation is caused by number of factors. Reduced mortality rate, better medical facilities, depletion of precious resources are few of the causes which results in.
Demand-side causes. In the short term, economic growth is caused by an increase in aggregate demand (AD). If there is spare capacity in the economy then an increase in AD will cause a higher level of real GDP.
The causes and effects of immigration are many and vary tremendously. Immigration can be voluntary, in which an immigrant seeks better opportunities or simply chooses to live in another country, or involuntary, either because of . Children with mixed gender friend groups game for longer, an indicator of the increase in sociable group gaming.