No More Worries!

image Our orders are delivered strictly on time without delay

Paper Formatting

  • Double or single-spaced
  • 1-inch margin
  • 12 Font Arial or Times New Roman
  • 300 words per page

No Lateness!

image Our orders are delivered strictly on time without delay

Our Guarantees


  • Free Unlimited revisions
  • Guaranteed Privacy
  • Money Return guarantee
  • Plagiarism Free Writing

Aggregate Demand and Aggregate Supply

Toyota Makes Its Move

If you or someone you know bought a new car recently, the odds are pretty good that it was manufactured by one of two Japanese companies, Toyota or Honda. Together, these companies account for about a quarter of total passenger car sales. But this was not always the case. In 1973, the two companies accounted for a mere 2.6% of U.S. auto sales. Over the course of the 1970s and early 1980s, the Japanese share quadrupled. Why?
Toyota did a lot of things right: during the 1960s it had perfected the technique of so-called just-in-time production or lean manufacturing, a production system that yielded lower costs, higher productivity, and higher quality compared to American production techniques. (You may recall our discussion of lean production in the Chapter 2 Business Case.)

But Toyota was lucky as well. During the 1970s, Americans began to switch from enormous sedans to smaller cars, a market that American car companies had neglected. The few choices they did offer were of poor quality, and included the AMC Gremlin and Ford Pinto, among others. In contrast, Toyota, having long produced small, reliable, fuel-efficient cars for Japan, its home market, was ready to fill the gap.
But why the shift to smaller, fuel-efficient cars? One answer is that the United States experienced a series of severe recessions, which could have induced consumers to seek cheaper alternatives to traditional big cars. As it turns out, however, other recessions have not led to major downsizing in car purchases. Figure 12-19 shows the average number of miles per gallon for new passenger cars since 1975, which has generally trended upward, but increased at a much faster rate in the mid to late 1970s and early 1980s, before stabilizing in the early 1990s—this despite the fact that many consumers were buying more fuel efficient cars at that time. And, as you can see, there was only a slight increase in average mileage after 2007, even though the Great Recession that began that year was deeper and more prolonged than any slump since the 1930s.
So what was different in the 1970s? At that time, two bad things were happening: unemployment was rising sharply, but so was the price of gasoline. After 2007, as unemployment soared, gas prices fluctuated but eventually came down to levels well below those before the recession. So people bought fewer cars, but not, by and large, smaller cars.
The point is that Toyota got its big break not just by producing good cars, but also by producing the particular kind of good car that suited consumers during the economic troubles of the 1970s.

  1. Why do you think gas prices rose in the recessions of the 1970s but fell after the Great Recession?
  2. What does this say about the causes of the recessions in each case?
  3. In the 1970s, Toyota was able to increase its American sales despite interest rates on auto loans surging as high as 17.5%. In contrast, after 2007, auto loan rates fell to their lowest levels in history; car sales also declined. Explain why. (Hint: Examine the connection between inflation and interest rates on loans.)

Sample Solution

Would it be advisable for us to be permitted to take our very own lives? In numerous societies antiquated and not all that old suicide has been viewed as the best alternative in specific conditions. Cato the Younger submitted suicide instead of live under Caesar. For the Stoics there was nothing essentially corrupt in suicide, which could be normal and the best choice (Long 1986, 206). On the other hand, in the Christian convention, suicide has to a great extent been viewed as unethical, resisting the desire of God, being socially unsafe and restricted to nature (Edwards 2000). This view, to pursue Hume, overlooks the way that by dint suicide being conceivable it isn't against nature or God (Hume 1986). By the by, being permitted to take our very own lives encroaches on the morals of open strategy in an assortment of ways. Here we will quickly look at the instance of doctor helped suicide (PAS) where a person's desire to pass on might be supported by the activity of another. Hume viewed suicide as 'free from each attribution of blame or reprimand' (Hume 1986, 20) and in reality suicide has not been a wrongdoing in the UK since 1961 (Martin 1997, 451). Helping, abetting, guiding or securing a suicide is anyway a unique statutory wrongdoing, albeit couple of indictments are brought. As of late the issue of PAS has realized the discussion 'whether and under what conditions people ought to have the capacity to decide the time and way of their demises, and whether they ought to have the capacity to enroll the assistance of doctors' (Steinbock 2005, 235). The British Medical Association restricts willful extermination (leniency slaughtering) yet acknowledges both legitimately and morally that patients can reject life-drawing out treatment – this that they can submit suicide (BMA 1998). Neglecting to forestall suicide does not establish abetting (Martin 1997, 451) despite the fact that PAS 'is the same in law to some other individual helping another to submit suicide' (BMA 1998). In Oregon, be that as it may, PAS, limited to capable people who ask for it, has been authorized (Steinbock 2005, 235, 238). A qualification ought to be kept up among suicide and (leniency) slaughtering, acts in which the specialists vary, however obviously precisely where the line ought to be drawn is a piece of the issue. The moral contentions in help of PAS include enduring and independence (Steinbock 2005, 235-6). The principal affirmation is that is merciless to draw out the life of a patient who is in torment that can't be medicinally controlled; the second, in the expressions of Dr Linda Ganzini dependent on her investigation in Oregon, includes the possibility that 'being in charge and not subject to other individuals is the most essential thing for them in their diminishing days' (cited in Steinbock 2005, 235). The coherent result of these contentions is that, if PAS can be supported on the grounds of torment or self-governance, for what reason would it be a good idea for it to be limited to skillful people or the critically ill? Surely the judge in Compassion in passing on v State of Washington (1995) expressed that 'if at the core of the freedom secured by the Fourteenth Amendment is this uncurtailable capacity to accept and follow up on one's most profound convictions about existence, the privilege to suicide and the privilege to help with suicide are the right of no less than each rational grown-up. The endeavor to limit such rights to the critically ill is deceptive' (Steinbock 2005, 236). As noted above, religious dissatisfaction with suicide has turned out to be less pertinent an as referee of morals and approach. In fair social orders that may best be depicted as mainstream with a Christian legacy, the perspectives of religious gatherings ought not confine the freedom of people in the public arena (Steinbock 2005, 236). Others contend that the job of the doctor is to mend and help and not to hurt, however supporters of PAS would state that passing isn't constantly destructive and helped suicide is an assistance. Undoubtedly, in a nation where PAS isn't lawful individuals who wish to bite the dust without condemning the individuals who aid their suicide might be driven abroad, as on account of Reginald Crew who was kicking the bucket of engine neurone sickness and made a trip to Switzerland for AS, biting the dust in January 2002 (English et al. 2003, 119). This may cause more damage through the worries of disengagement and stress than enabling the PAS to happen. The two most genuine concerns are that PAS would be mishandled and would prompt negative changes in the public arena. This could occur from numerous points of view through defenseless gatherings, for example, poor people, the elderly and so on, being constrained into picking PAS (Steinbock 2005, 237). The BMA underscores a worry for the message that would be given to society about the estimation of specific gatherings of individuals (BMA 1998). This is a piece of a more extensive concern additionally communicated in a Canadian Senate enquiry of 1995 (BMA 1998) which focuses to a strategy of suicide anticipation among some defenseless gatherings that would be rendered odd by looking to ease suicide among the debilitated. Notwithstanding, the introduction is somewhat deceitful, since there is a distinction in the explanation behind potential suicide that must be examined. For instance, looking to counteract suicide among the adolescent may include projects of social consideration or expanding life prospects, and this style of arrangement isn't appropriate on account of the individuals who may look for PAS. In Oregon in any event, it appears that feelings of dread about PAS have not emerged, and one specialist presumes that the generally low utilization of PAS is characteristic of it being excessively prohibitive (Steinbock 2005, 238). Clients of PAS, as opposed to being poor people and socially defenseless as anticipated, would in general be working class and taught, with more youthful patients bound to pick it than the elderly, and most were selected in hospice care. Issues about PAS and killing should be cleared up and contended independently. With regards to this issue at any rate, the topic of whether suicide ought to be permitted is the wrong one to inquire. A beginning stage is to ask how skilled people can be permitted to satisfy their desires as to life and demise issues without imperiling other individuals, regardless of whether specialists or friends and family and whether widely inclusive enactment is possible.

Price Calculator

Single spaced
approx 275 words per page
Total Cost:

12% Discount


  • Research Paper Writing
  • Essay Writing
  • Dissertation Writing
  • Thesis Writing

Why Choose Us


  • Money Return guarantee
  • Guaranteed Privacy
  • Written by Professionals
  • Paper Written from Scratch
  • Timely Deliveries
  • Free Amendments