Tiêu đề TT case 2 ad-as ✅

- The state budget deficit was 56.5 trillion VND, equivalent to 4.95% of GDP, indicating significant public spending beyond the government's income. b. Natural Disaster Natural disasters such as storms, floods, and epidemics had a devastating impact on agriculture and infrastructure in Vietnam. The reported damage included the loss of nearly 350,000 hectares of rice and crops, destruction of over 1 million cattle and poultry, and damage to 68,000 hectares of aquaculture areas. Additionally, floods eroded over 1,000 km of motor roads and caused nearly 5,000 houses to collapse or be swept away. => The total value of damage from natural disasters in 2008 was estimated at nearly 12 trillion VND. 2. External factors a. Global commodity prices - The global prices of crude oil and other essential raw materials surged significantly. - Crude Oil: The world price of petroleum increased by 51.24%. - Steel Billet: Prices increased by 43%. - Fertilizer: Prices increased by 67%. - Corn: Prices increased by 31%. - Soybean: Prices increased by 87%. - Wheat: Prices increased by 130% - Vietnam's economy heavily depended on imports for natural commodities, materials, machinery, and equipment necessary for domestic production. Specifically: - Petroleum: Vietnam imported 100% of its petroleum. - Steel Billet: 65%-70% of steel billets were imported. - Raw Materials for Medicine Production: 60% were imported. b. Rapid Credit Growth - From 2005 to 2007, Vietnam's money supply increased by 135%, while GDP only grew by 27%. This imbalance indicated excessive liquidity in the economy, leading to inflation. In 2007 alone, the total means of payment increased by 46.7%, and outstanding loans grew by 57.53%. - The rise in foreign currency inflow in 2007 (up to 22 billion USD, equivalent to 30% of GDP) led to an increase in the State Bank's foreign reserves, which required injecting large amounts of domestic currency into the market to maintain the USD exchange rate. This further increased the money supply and inflationary pressures.

A. Identify the causes of high inflation in Vietnam in 2008 1. Initially the economy is at equilibrium at E : 1 P = P 1 ; Y = Y 1 Event: Vietnam's accession to the World Trade Organization (WTO) in early 2007.=> Investment increase (This enhanced investor confidence and increased both private and public investments, significantly boosting aggregate demand ) ↑ AE = C + I ↑ + G + NX Aggregate expenditure increase => The IS curve shift to the right => Aggregate demand increase and AD curve shift to the right. The economy reaches the new equilibrium at E 2 : P = P 2 ; Y = Y 2 P Price level increase. (1) 2 > P 1 : Y Total output increase. 2 > Y 1 : Conclusion: Vietnam's accession to the World Trade Organization (WTO) in early 2007 leads to higher price level and higher total output. 2. Initially the economy is at equilibrium at E : 1