Potential Short-Run Economic Impacts of the Recent Japanese Disaster Essay

authorisation Short-Run Economic Impacts of the Recent Japanese Disaster on the Australian Economy - Essay fontAccording to the research findings, it can, therefore, be said that specifically, the study of microeconomics allow us to have better judgement about the movements of money from the local firms to household which often times is dictated by the movements of a pervert in demand and supply of goods and operate in domestic and global markets. Furthermore, the study of microeconomics allows us to theorise on interrelated between salary and wages, employment and unemployment rate, its potential effects on business performances, and the scrimping as a whole. Based on the Keynesian model, economic recession and contractions are usually caused by the presence of unforesightful demand for Australian goods and services. In fact, the post-Keynesian economics proposed the possibleness of aggregate employment such(prenominal) that the distribution of income, economic growth and d evelopments in trading practices are dictated by the demand-side curve, Although the post-Keynesian economic theory suggests that the market of a competitive economy is dictated by the demand-side curve and will never make up or satisfy the idea of full employment, economists generally believe the presence of inadequate demand for goods and services can cause a serious market failure and economic problems. With this in mind, the presence of inadequate demand can result in the presence of high unemployment rate. The recent tsunami in Japan has to attract to a significant decrease in the demand for Australian coal and iron ore. The problem with a sudden decrease in demand for goods and services is that the business owners of local firms in Australia may entirely lay-off some of its current employees.