AAF045-6 Business Economics Assignment Sample

Module code and Title: AAF045-6 Business Economics Assignment Sample

1. Introduction

Business economics is important to assist in the way of establishing cooperation between economic elements like profits, market framework, losses, and income. It assists in guiding the managers in more effective ways of decision making and also assists in running the company or country. The policies of macroeconomics play a major role in the condition of the economy in encouraging and attaining economic growth.

Along with that it takes participation in the essential description and focuses on the macroeconomics application to the region. It obtained macroeconomics policies which don’t assist the nation to develop sustainability and also economic conditions. In addition, it participates with a good framework description of the UK’s economic system and also the situation of the real economy.

2. Literature review

2.1 Critical identification of the macroeconomic policies Vs Growth

The condition of the economy can be demonstrated with the divergent kinds of concepts like commanding economy, traditional economy, mixed system, and also the market economy. The system of economics is further demonstrated by the various factors that assist in the development of the national society (Malik et al. 2019, p.35). Along with that, it assists the company and also contributes related to the available resources, and also the services inside the geographic region, and also the territorial region.

It has been recognized that the system of economics has shown divergent nations in economic elements. Moreover, the factor has been directed with the economic system like capital, labor, and also physical resources. Apart from resource management, the economic system mainly assists in the way of making necessary decision-making related to the UK’s national income.

Figure 1: Kinds of economic structure (Source: Mayhew and Anand, 2020, p.52)

Traditional economic system: It mainly depends on the time-honored beliefs and also the costumes. Along with that, it can be also demonstrated with the basics of the economic system that add additional reflection on the tradition and also the customer in the core elements. As per the view of Mayhew and Anand (2020, p.52), the region mainly follows the commerce and trade tradition in the same “traditional economic system (TES)”.

The TES limitation is mainly shown due to the economic structure potential, in the way of generating the economic surplus. Therefore, by applying the policies of the traditional economy, the nation can add optime on resource wastage and also maintain nation sustainability. In differentiation to the other three structures of an economic system which is considered the main system by the way of resources, wastage can be directed easily.

Command economic system or structure: The government intervention or also administration in the condition of the UK’s economy. It is required for maintaining the “command economic system (CES)” and also leads the economic structure of the government. It is the major economic structure portion and is also referred to as the system of economics planned for showing the operation (Exeter.ac.uk, 2022). It has been done as per the basis of government planning and also the condition of the economic plan which is referred to as the most general economic framework as per the case.

Therefore, if it has been accessed the economic resources increase the government case management or also control the resources of excessive utilization to diminish the wastage. As per the basis of comparison to those as per the framework of economics which has ordained the planned and command economic structure. Thus, with the effect that it has shown due to government interference and also command centralization CES reacts by slowly altering the condition. Therefore, because of the slow growth in the system which has been described as an economic vulnerable crisis as they have adjusted to the speedily alter in the UK’s economic condition.

A market economic system (MES): It is more demonstrated with the free market concepts as related to the administration interference and also the participation with much less. Along with that the additional administration bears lower monitor all over the resources and does not interfere with the crucial nation segments (Malik et al. 2019). On the other hand, it can be demonstrated that the MES runs all over the policies and regulations framed by normal people.

Moreover, it has thought about the “Demand and supply” as per the basis of market regulation in UK’s business as fluctuated. It is more recognized as the condition of theoretical economics and also for more theories as obtained with the MES assist in the attaining nation suitable growth. It is mainly based on the ascertained description which perceived that MES implication obliges on attaining the nation as greatest growth.

Mixed system (MS): it has been well planned and combined with the MES which has been referred to as MS. Hence, with the effect of that it has played a crucial role in the “dual economic system”. Alternatively, Mixed-income can be found as the MS which mainly works under administrative regulations and also strict policies (Exeter.ac.uk, 2022). It follows with the development of the “Western hemisphere”. In addition, it aligned with the best-planned features of the economic system and also the MES.

it recognized the MES and participated in certain issues to find the balance between government-free MES and intervention. It is also recognized as the MES which is capitalism in comparison with socialism. The MES is greatly utilized to mitigate private property and also avail economic freedom at the time of capital use. It has also notified that MES obliges the nation or firms to achieve the social focus with administration intervention in the economic operations.

2.2 Discuss the poverty theory for the methodological approaches.

Business economics has indicated managerial economies which are mainly designed with applied business operations. Along with that, it has referred to the business methodology which is necessary for making decisions and depending on the business economics methodology. Additionally, four kinds of divergent economic theories of sorts have been recognized the “economic theory side supply”, Keynesian economics, new classical economics, and also monetarism. It has recognized applied economics which refers to the economics theories’ application for identifying the outcome (Ons.gov.uk, 2022).

It has been associated with economic operations in the real world. It has thought about the given case studies, and it has advocated the way of identification of divergent implementations related to the divergent macroeconomics theories within the nation. It can generally achieve sustainable economic growth and so it can diminish the poverty issues in the UK.

Figure 2: Supply-side economics (Source: Froud et al. 2018, p.16)

It recognized the theory as per the basis of resources supply and also the work services more efficiently. Along with that, it produces products which refer to the supply side theory related to the economy (Froud et al. 2018, p.16). The elements have aimed at the supply side economics theory which has divergent production that is labor, land, and entrepreneurship. As per the basis of business, the theory of supply-side economics has been applied to generate a favorable and better change of climate in business operations.

It is used for reducing the rates of tax and also deregulating tax policies. Along with that, it has increased the commodities supply and also the economic growth which can be taken easily. As per the information taken from Gamage et al. (2020, p.96), the “supply-side economics theory (SSET)” increases the commodities supply and also the growth of the economy can be achieved. The supply of fiscal policy and economic theory adding more emphasized the borrowing reduction rates, and industrial policies deregulations.

Figure 3: CET (Source: Lambert and Van, 2021)

The fiscal policy related to the theory of supply-side economics emphasizes the borrowing rates of reduction and also the industrial policies deregulations, and also increasing the level of production. Along with that, it has degenerated with giving a more positive impact on the UK nation as given more benefits with maintaining the lower rate of inflation, improving the growth of economics, diminishing the issues of unemployment, and also developing the payment balance and trade (Deloitte.com, 2022).

The new “classical economics theory (CET)” has been recognized as the theory that mainly depends on the Walras Ian theory. The increasing value of utility is mainly based on the assumption of rational expectation related to the Walrasian. As per the basis of Framed theory, the economy has expressed as the provided potential output or unique equilibrium that has been achieved by adjusting the wages and price. The theory is mainly aimed at the punctilious importance foundation based on the rational and macroeconomics expectation (Lambert and Van, 2021). Along with that, it has thought about Keynesian and monetarism theory have been ordained with monetarism theory.

Figure 4: increasing capital expenditure during the pandemic (Source: Deloitte.com, 2022)

The increase in child poverty is more theoretical for the children’s future and also may have a negative impact on the UK’s economy (Malik et al. 2019, p.34). It can recognize as the children population third which has shown the whole children population which is 31%, in the poverty grip. The COVID-19 pandemic is the reason behind the drastic change in the UK’s economy. The rate of death from the pandemic has shown more than twice the normal rate of death in the poorest region in the UK.

Alternatively, the death rate in the UK’s wealthy part was shown much lower as compared to the UK’s poorer part (Deloitte.com, 2022). Wealth showed the importance for humans in time surviving and the pandemic has affected the household one third almost 9.74 million households, and approx. 10% of the people have faced a financial crisis. Along with that, 16% of the population has struggled to meet and survive its requirements.

3.Analysis and Discussion

3.1 A statistical approach to macroeconomic policies

It can be seen that the changes in the type of policies are effective when the form of business activities are maintained properly. During the time of operation, the business improvements can be followed when the scope of economic developments can be noticed. The type of data that is considered in this case is mostly based on a stable approach and improvements in terms of estimating requirements for the business (Saputro and Prakoso, 2021).

Creating more opportunities for essential forms of operation is required so that creating the form of operation can be helpful. It is also suggested that business activities are essential to be maintained when the formation of an operational cause is required.

(Figure 5: Statistical approach to macroeconomic policies) (Source: Cifuentes-Faura, 2021)

After analysing the data relatable for sustainable growth, it can be seen different business improvements can be mitigated for maintaining the form of business opportunity. The form of operation can be beneficial in improving the action for segmenting the operational outcome. Creating opportunities can be helpful (Cifuentes-Faura, 2021).

These requirements for the form of business opportunities are essential to creating an improving business. The rate of inflation is fluctuating and the form of opportunities can provide a mode of business operation that can be helpful. The rate of employment in the Uk is 75.9%. However, after the impact of covid 19 the employment rate decreased simultaneously. Before the coronavirus pandemic, the rate had reduced and it had created a major impact on the economy of the UK.

3.2 The objective of macroeconomy growth rate in the Uk

Stable the inflation rate as low

The current rate of inflation is 6.8% in the UK and the estimated rate is 2%. To reduce the rate of inflation, it is important to make decisions on orienting the opportunities for business improvement. If the price of commodities can be managed effectively then managing the activities of a business can be easy (Chetty et al. 2020). As a result, estimating the format of inflation will be reduced if the prices of the products could be stabilised and maintenance of improvement from the end of business could be managed effectively.

Figure 6: Economical factors of the UK (Source: Tassinari and Maccarrone, 2020)

Focus on sustainable growth.

The growth of the Uk’s economy lies in the upliftment of its domestic products. This can help to improve the

the existing condition of the UK. The availability of raw materials is a challenge in the UK. As a result of per analyzing of the data, it can be suggested that raw materials can be collected from India and China. The reason behind this is the low rate of prices in these countries (Tassinari and Maccarrone, 2020). If the availability of raw materials can be found at an increased rate, then it can help to improve the mode of business in a better way.

The data that is collected from the UK market suggests that the changing behavior of the people is focusing more on domestic products as they are more convenient to get and better to use (Ding et al. 2020). As a result, if the domestic products can be improved then it can impact the function of the UK in a better way.

Improving productivity

The market of the UK is considered very competitive, and maintenance of operation is easy for developing the issues. The productivity rate of the UK is increasing at a verge of 1.7 % in 2019. However, after the impact of covid 19 the growth rate had reached 0.7%. This is the reason the economic condition of the UK is getting deteriorated. Improving operational actions, the mode of opportunities of business can be managed with different modes of opportunities (Daly et al. 2020).

However, properly building the operation can mitigate the issue. The data regarding the output rate per hour manages the rate of productivity for the business. It can be evaluated that estimating this type of operation is helpful when building a business is specialized. Thus, there are various forms of operation that are required to form the level of business for a better mode of activities.

Figure 6: Productivity measures in Uk (Source: Su et al. 2022)

High employment

The target is to increase the rate of employment in the UK. It can be done if the companies could collect data from it. The education institution where students that are high in potential can be identified. This data of students can be further analyzed and improved so that the operation of the business can be managed seamlessly. Thus, creating a better mode of business could be a choice of improvement.

The information is essential to building the business improvement plan so that maintaining the mode of opportunities could be easily managed. The role of maintaining the business actions is essential as managing this operation can help to develop the approach of business and implication of growth can be managed in a better way.

Rising the standard of living and a fall in relative poverty

Child poverty is a growing issue in the UK and it is required to manage this so that the mode of business operation can be done effectively. Creating a mode of operation can be valued effectively so that maintenance of opportunities can be improved. There are various forms of operational implications and the verge of doing this can be possible for developing opportunities.

There are various modes of business that are essential to continue e better mode of conduction. Thus improving opportunities are essential to managing the mode of business (Su et al. 2022). Ensuring different modes of betterment is also helpful so that creating a view of operation could be managed. The implication the mode of operation is essential as this can reduce the chance of business opportunities.

Sound governance in finance

In terms of maintaining the national debt, it is important to manage the control over the borrowings of the country. To manage a better and stable economy, the management needs to grow the improvement opportunities. Thus, it is also essential to manage and control the growing stage of business operation (Hickel, 2019). It is also essential to consider the collection ability of UK personnel so that maintaining the main mode of operational implication can be done.

3.3 The growth rate of the economy in the UK

It is essential to collect data from different earning sectors of the UK so that it could be easier to identify whether the data that are collected from management are helpful or are impacting the operation of the UK. Managing the mode of operation is also helpful if it can mitigate the type of operations in this case. However, there are several modes of activities that are essential to be managed. Improving the mode of business objectives are also essential so that maintaining the operation can be a chance for business improvement (Ponkratov et al. 2019).

Thus, it is also essential to manage and implicate the form of business objectives for improving the mode of operation in business immergence. Developing the mode of operation is also essential so that business could be managed seamlessly. It is also helpful for the required form of operational implication to help manage a business. It is because improving business opportunities are essential to managing the verge of Mitigating business opportunities (Lea, 2019). Thus, to understand the growth rate data from the industrial segment, data from the handcraft segment and data from the health sector are needed to be collected.

This can help to develop a need of importance so that mitigating the mode of operation could be done by improving business implications. Several ways are needed to consider for improving the operational mode of business. Thus, to create a mode of emergency, it is essential to form business management requirements only. Developing the mode of creation is essential so that it could manage the scope efficiently. There are several modes of operation that is essential for maintaining economic upliftment. If data based on that can be managed then the chances of growth will increase in future.

4. Conclusion

It can be concluded that managing different modes of economic factors is essential for understanding the growth rate of the UK is essential to be managed for creating a need and emergence for business upliftment. In this report, the data based on policies of macroeconomics and contribution towards the role and development of business can be for better opportunities for economic growth. The sustainability measures are also provided in this project so that it can be managed more effectively.

Improving the form of economic development are also essential for contributing to a growth structure. The data collection method based on the quantitative method is shown that helps to develop business in a better way. Creation of the mode of operation is essential so that it can improve the kind of emerging operation and also helps to understand the effectiveness of business. The main objective of the project is to highlight the growth measures of the business and how it is managed in a better way.

Reference list

Chetty, R., Friedman, J.N., Hendren, N., Stepner, M. and The Opportunity Insights Team, 2020. How did COVID-19 and stabilization policies affect spending and employment? A new real-time economic tracker based on private sector data (Vol. 27431). Cambridge, MA: National Bureau of Economic Research.

Cifuentes-Faura, J., 2021. Analysis of containment measures and economic policies arising from COVID-19 in the European Union. International Review of Applied Economics, 35(2), pp.242-255.

Daly, M., Sutin, A.R. and Robinson, E., 2020. Longitudinal changes in mental health and the COVID-19 pandemic: Evidence from the UK Household Longitudinal Study. Psychological medicine, pp.1-10.

Deloitte.com, 2022, United Kingdom economic outlook, Available at: https://www2.deloitte.com/us/en/insights/economy/emea/uk-economic-outlook.html, [Accessed on: 05^th September 2022]

Ding, D., del Pozo Cruz, B., Green, M.A. and Bauman, A.E., 2020. Is the COVID-19 lockdown nudging people to be more active: a big data analysis. British Journal of Sports Medicine, 54(20), pp.1183-1184.

Exeter.ac.uk, 2022, business Economics – 2023 entry, Available at: https://www.exeter.ac.uk/undergraduate/courses/economics/busecon/, [Accessed on: 05^th September 2022]

Froud, J., Hayes, S., Wei, H. and Williams, K., 2018. Capabilities and habitat in industrial renewal: the case of UK textiles. Cambridge Journal of Economics, 42(6), pp.1643-1669.

Gamage, D.K., Sevilla, A. and Smith, S., 2020. Women in economics: a UK perspective. Oxford Review of Economic Policy, 36(4), pp.962-982.

Hickel, J., 2019. The contradiction of the sustainable development goals: Growth versus ecology on a finite planet. Sustainable Development, 27(5), pp.873-884.

Lambert, P. and Van Reenen, J., 2021. A Major Wave of UK Business Closures by April 2021?: The Scale of the Problem and what Can be Done. Centre for Economic Performance, London School of Economics and Political Science.

Lea, R., 2019. The UK economy in a global context: an important second tier economy. Arbuthnot Banking Group, 8, p.2018.

lse.ac.uk, 2022, Centre for macroeconomics, Available at: https://www.lse.ac.uk/CFM, [Accessed on: 05^th September 2022]

Malik, A., Adekoya, O.D., Ajonbadi, H.A. and Jimoh, I., 2019. Investigating the potential economic impact of Brexit decisions on business performance in the United Kingdom: a case study of the UK construction industry. International journal of management, accounting and economics, 6(4), pp.347-367.

Mayhew, K. and Anand, P., 2020. COVID-19 and the UK labour market. Oxford Review of Economic Policy, 36(Supplement_1), pp.S215-S224.

Ons.gov.uk, 2022, Understanding the UK economy, Available at: https://www.ons.gov.uk/economy/nationalaccounts/articles/dashboardunderstandingtheukeconomy/2017-02 —-22#:~:text=UK%20gross%20domestic%20product%20(GDP,in%20UK%20GDP%20on%20record, [Accessed on: 05^th September 2022]

Ponkratov, V.V., Karaev, A.K., Silvestrov, S.N., Kuznetsov, N.V., Smirnov, D.A. and Kotova, N.E., 2019. Graphical analysis of the growth rate of national economies by considering the supply chain strategy in 25 countries over the period from 2000 to 2016. International Journal of Supply Chain Management, 8(6), pp.1027-1034.

Saputro, G.E. and Prakoso, L., 2021. Implementation of Economic Policies Facing Covid 19 in Supporting Nonmilitary Defense. International Journal of Social Science And Human Research, 4(4), pp.634-642.

Su, C.W., Dai, K., Ullah, S. and Andlib, Z., 2022. COVID-19 pandemic and unemployment dynamics in European economies. Economic Research-Ekonomska Istraživanja, 35(1), pp.1752-1764.

Tassinari, A. and Maccarrone, V., 2020. Riders on the storm: Workplace solidarity among gig economy couriers in Italy and the UK. Work, Employment and Society, 34(1), pp.35-54.

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