Introduction
The Gross Domestic Product is responsible for production that takes place in a country. Inflation comes about due to an increase in demand. Inflation is also bound to occur if the supply increases. The rate of unemployment is said to increase when the labor market is faced by shifts (Baumol and Blinder, 2008). The Neo-Keynesian theory states that the real Gross Domestic Product should not grow too fast so that price inflation does occur. This is because companies are always in competition and hence to cut cost they employ very few employees leading to unemployment.
Main body
Production of wine is greatly enhanced by technology that is innovative and creativity of individuals. Wine production is successful across the globe because it has integrated the aspects of the economies. The production of wine is related more to the gross domestic product compared to the rates of interest. The import and export of wine is affected by the changes in exchange rate. The wine industry contributes greatly to the economies globally and thus raises the Gross Domestic Product. For example, in New Zealand, it is said to be one of the sectors that has been performing well. The wine industry employs very many people who are estimated to be 16,500 in New Zealand and hence helps to decrease the rate of unemployment. It generates very high revenue of 3.5 billion US dollars. The wine industry also participates in the wine tourism. In the year 2006 the wine industry had 224,000 wine tourists. The wine industry is said to benefit greatly from this tourists in New Zealand (Baumol and Blinder, 2008).
Compared to the daily industry the growing of grapes is said to earn a high export value to the economies in various countries. The wine industry in South Africa ensures that the industry continues to grow and hence the growth in the economy. It said to offer 275,600 people an opportunity to work. In 2008, the wine industry recorded a 2.2% of the Gross Domestic Product. From the agricultural sector the wine is said to lead in the exports. The United States is said to be one of the countries that produces wines that are of quality. In 2006 the United States dollar was weakened and this greatly supported the wine industry in the US. The foreign competitors were affected and the wine exports in the United States did very well to upgrade the economy. Prices set on the wine determine the quality of that wine. In china the wine industry is still growing, however it has recorded a high consumption of wine. It is said to be concentrated when compared to the spirits and beer and it records very high profits.
When the wine industry records a low growth this affects the demand of the consumers on goods. The low income has an effect of substitution to the consumers because their purchasing power is reduced since the budget is low and hence consumers cannot also be able to purchase the wine. This is particularly on wines that are of high quality compared to those of a lower quality. Research on the wine industry is still being enhanced in the whole globe. The wine producers now face the challenge of understanding what motivates the consumers to certain brands of wine. If price stability can be achieved on the economies then inflation fails to occur.
The other industry is the fast food industry.The United States has the highest number of spending on the fast food restaurants in the whole world. People have greatly invested in the first food restaurants due to the high income that it fetches (Challen and Hagger, 2000).Majority of people both in developed and developing countries spend a large amount of their income in restaurants. This gives the fast food industry a very good chance of expansion. During times of recession people are said to eat most of the times in the restaurants because the foods that are traditional are very expensive at that time. This industry offers so many opportunities for people because many fast food restaurants continue to be opened. In the United States the fast food industry is said to contribute a total of $ 1.23 trillion to the economy (Central Intelligence Agency, 2009).
Conclusion
Inflation in the United Kingdom is said to affect the consumer spending in the country. The rise in prices of energy and oil has led to food becoming expensive. The eating out at fast food restaurants has posed danger to the health of many people especially in America. There have been reported cases of heart diseases which are related to the fast food industry. Cancer is also on the rise and obesity too. However in order to keep up with the preferences of the consumers the fast food restaurants have added healthier foods in the menus so that people cannot be discouraged from eating out. Fast foods are still not encouraged due to health reasons. Inflation leads to intervention of prices by the government. Policies need to be implemented to curb inflation so that the economy can be able to achieve full employment.
References
Baumol, W. & Blinder, A. (2008) Macroeconomics: Principles and Policy. London: Cengage Learning.
Central Intelligence Agency (2009). The World Factbook 2008. London Government Printing Office.
Challen, D. & Hagger, A. (2000).Unemployment and inflation: an introduction to macroeconomics. Chicago: Longman Cheshire.