Wednesday, November 26, 2008
Macro economy theory and policy adaptation in reality situation
New Keynesian economics could use to explain in this current situation.N.Gregory Mankiw and David Romer who have been improved the previous Keynesian economics theory, when the new classical economist criticize the theory was technically inadequate. The reason is the theory does not include microeconomic foundation which the new classical economics theory does.
The pump price going down, the prices of essential items have not come down. The domestic trade and consumer affairs minister expect all the traders cut down the price as a welcome of pump price going down gradually. Therefore all hypermarket, mini-markets and wet markets should ensure the best prices for consumers.
Hypermarket will easily reduce the goods because their purchase the goods in huge quantities. Whereas the mini market and wet market unable meet the consumer demand regarding price reduction. The wet market selling perishable goods, these kinds of goods can not last long. Therefore the wet market traders charging a bit higher on the goods during the peak hours but incurring loses sell after the times meet reaches 11 a.m. Fresh vegetables and meats cannot keep too long, or in consequence losing the potential consumers.
Mini markets unable reduce their prices because there might be older stores which purchased in higher rate. The perishable goods purchased from the wet market after sold to local residents, the goods have been value added not in the context of quality but the prices gone up. The traders and shoppers are charging shoes leather cost and transportation fee which the journey to wet market. Until now the transportation union does announce they will reduce the transportation charging fee. In simple conclusion transportation charging fee does not reduce, prices of essential goods hardly to reduce. The chain effect will keep going deteriorate the situation.
New Keynesian theory could be apply in this situation, the sticky price (menu cost) models.
Sticky price (menu cost) that mean firm would hold the product prices unchanged even though the demand keep falling. This is because the cost of changing the prices out weight the benefit of prices cut. Example if a restaurant wants to change the prices, they should be really to print new menus. If they do so, they are directly or indirectly incurring several types of costs.
One of the costs is managerial costs which mean costs of gathering the information , communication and negotiation .Cost of gathering the information , firms require to find a optimal price change levels. Next the cost of communication and negotiation, firms unduly persuade the customers who resist the change.
Perfect competition market does not exist but in theory it does .It reality world, firms may engage in monopoly or oligopoly markets. Therefore the new classical theory not completely fitted in reality world because the market render by real rigidities. That has answered the question. Even though money wage are changing, aggregate demand, output and employment not corresponding with the changes.
To be Continue………….
Saturday, November 22, 2008
Part 1: Empty-Promises cannot last forever. This is only hurting the person more deeply.
I have said something that offended the customers, but did with intention. I kept asking myself,” Have I done something wrong “.The customer was so selective; he was using his fingers to pointed the stuffs but ended up a mess for me. An obedient boy followed the customer, brought everything that him have pointed. Almost 10 items which I could counted within my fingers, took those things to landing zone (Counter).The words I have said this items was very expensive but actually was quite cheap.
The lovely cashier Auntie was surprised when the counter stuffed with items, maybe she thought today was her luck day. During morning hour’s we were having less than ten customers that will pay a visit to this small and spacious less sundry shop.
The customer have reached the counter, Auntie welcomed him with a sincerest smiles. Auntie started calculated the amount with looked on price tag which attached on each items. The moves looked liked a robot, calculated the items and putted on the plastic bags. The cash register have shown the amount, the person seem astonished. Customer opened his mouth said: Lao Ban Liang (Chinese word which addresses the lady boss) could account again caused I am not satisfied with amount.
No choice but compromise with the customer request, the cash register generated the same amount. The customer opened up his wallet, founded that the money was short could not paid the bill. Started given invented excuse, could I brought these stuffs to home and paid it later. Dear readers, I guess your guy sure say: the auntie reject it.
Thanks for reading my blog.
Love sensation is coming to reality world
You would better watch out
You would better not reject
You would better evaluate closely
I am telling you why:
Love sensation is coming to reality world.
It is hurting you once
It is hurting you twice
It does not care if you have been careful and wise.
Love sensation is coming to reality world
It is worthless if your hearts have been touched by him or her
It is worthless if you got him or her attention
It is safe when you have confessed to him or her.
So confession is the answers.
The meaning is every single person will be fall in love or love by someone accidentally. Appreciate every single moment, when they are around spending times with you .No matter what they had did, those people were trying to shorten the distance between you.
Created by Keagon
Friday, November 21, 2008
Naza Suria u need be Strong
Today I going to Kia Service center .The car having a fever and need come massages .The oil filter needed to change, at least able to catch the dateline which labour fee absolutely free .However spare parts cost are the major concern before I went to the Kia Service workshop. Hopefully these tWo day I earned enough monies, the car will not suffered any more.After I reach the workshop , I park besides the kia consumer service and payment department. The DoOr with the sign “Please push tHE DoOr “ . After walked in sides, the Casher and cars services consultants was giving welcome sign with smiling non-stop. I have given my car number plat to the Car services consultants, What he had said We only “FOC” (free Of charge) for labour fee but not cost of Changing oli filter and Engine oil. The man was very considerate shown the amount should be paid. I gave the Key with ASIMo KEYRING (Thank LI Chin for accompany me went to One Utama bought that beautiful key ring) to the foreman.
I waited approximately TWo hours.The Naza Suria back to business, William able drive his buddy goes around KULIM , LUnas and Seberang Jaya areas.
Wednesday, November 19, 2008
Tuesday, November 18, 2008
Life is a progress, and not a station.
After came back home.I realized all the atmosphere around my home as well as the Kulim town have been changed.I must work hard to earn some money for my fourth semester.The money that i have earned will gone to "fuel expenditure " .The fuel expenditure is the first priority , RM 400 plus RM 150(family subsidize) will enough for me.Luckily the car (nAZA SuRIA) is fuel efficient but less spacious and without ABS (Anti-lock braking system).
ABS is to prevent the wheels on a motor vehicle from freezing or locking while the car is braking .Therefore wheel rotation allows the driver continuously maintain steering under heavy braking.The car prevent from skid and the wheels continuously interacting tractively with the road surface.
Appreciation for tHe Person really care n concern about U
Thanks Mum.Your present really cool .I never thought the birthday present was a car (Naza Suria).Though the number plat not the one i like.At least the car met some basic requirement, having four tyre , steering , 1.1 liter Single overhead cam , fog lamps and rebadged from KIA picanto.
I managed ended up my third semester with no regrets. Though i have finished exam on 10 Nov 2008 (M0ndAY) .I should been going home to meet "Job period requirement".
Hopefully they very understand .So they given me a couple a day to solved and clarified the huge troubles that i have created on this semester