Economics Coursework Essay Example | Topics and Well Written Essays - 1500 words - 1

Economics Coursework - Essay ExampleIn the economic boom many invested in real land and rented houses at a higher price to add consistent income. Such investments were centrally made in the business cities. However, the recession has caused unemployment and therefore demand for the rented houses has declined as hoi polloi on being jobless moved back to their respective cities. In such nerves, cost of retaining empty house increased such as maintenance cost etc. Therefore, the decline in income from rented houses caused by the decline in its demand had a positive trade in the demand of the owner occupation housing.Government to meet the challenge of crisis and budget deficit has been exploiting higher income people. In such case government can identify rental income as an additional source of income for people and therefore increases tax on the rental income. This step of government to increase income would have a positive outward shift in the demand of the owner occupation of h ousing. People will prefer to self occupy houses than renting it out for additional income to benefit from tax escape. The machine can also be in contrast. Such as government reducing the subsidies to people that have been hit by the recession but atomic number 18 living in own houses can have negative shift in the demand of the owner occupation housing. People in such case can would then prefer to live in rented houses and therefore demand of the higher subsidies from government.In contrast to above proposition, in case government takes measure to generate the economic activity in certain areas to deal with affects of global crises. Among such measures can be a scheme of providing business loan at lower interest rate to the people that wishes to start own small business venture in local areas. The scheme also offering subsidisation in the electricity and water bills to such people can have positive shift in the owner occupation in that particular area. Therefore, people to take the