1.Define the concept of economic growth and explain the concept of national income/output/expenditure
2.Describe the Danish business cycle for the last 10 years and include a presentation in a diagram made from data from the Danish Stat bank in excel
3.Make an analysis of the economic growth and business cycle based on table A below from The Danish Economy, Autumn 2020
We start out at the trough and under the target in 2009. Then between 2009 and 2010 we are under recovery and in 2010the was GDP 1,9% which is just right under the boom and in target again.
The after 2010 rescission happens and we are now under the target again 2011 and 2012.
From 2012 the recovery begins again and in 2014 we are at the target again and the year after we hit the boom. We have been at the boom since 2015 but in 2016, 2017 and 2019 we were over the target.
I would say since 2012 it has been going pretty good with the danish economic. I can already tell that the danish economic in 2020 under the target and at the trough and I think it’s going to be worse than 2009.
In 2009 we had a financial crisis were in 2020 we have a pandemic which is probably also going to effect 2021.
The consumer prices did also decrease from 2019 to 2020 and it did that because during the pandemic the economic growth was still.
The consumer prices often follow the development of the consumption, and as the consumption decreased, the consumer prices did as well. The reason why the economic growth decreased was because people was mostly home and only brought the necessities.
Stores, restaurants etc. have been struggling to survive, because people have not been able to purchase their products. They have, therefore, begun lowering their prices in order to make consumers more attracted to it.
This will not assure the same income as before, but it will assure an income to get through the everyday life of the pandemic, which short-term worked for the businesses.
Though, some businesses could not survive this strategy in the long run which have led to multiple, both big and small, companies to go bankrupt.