Week 7 weekly blog post

The article Jordan's economy may grow by 3 percent in 2012, describes how Jordan's Deputy Central Bank Governor Maher Sheikh Hasan expects the Jordan's GDP to grow between 2.8 percent to 3 percent this year compared with 2.6 percent last year. 
The nation's higher energy bill caused the government to look to lower public spending. Sheikh Hasan wants energy rationing, because he says that anything sold at less than its real cost causes more demand of it. If the government does this, Hasan says inflation will rise, which will add to the Jordan's financial issues.


This is good because any increase in GDP will greatly effect the nation's rather small GDP. 

If the government rations the energy bill, it may be a good idea. In the supply and demand curves of this market, there would be a shortage of energy, because there cannot really be a shortage of energy, excess energy is used. If the energy is rationed, it would return the supply and demand curve of this market to equilibrium and lower the energy bill (because excess energy will not be consumed now.