ECONOMICS

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ECONOMICS by Mind Map: ECONOMICS

1. Inflation

1.1. Demand Pull

1.1.1. Demand Increases

1.1.1.1. Bottleneck in production occurs

1.1.1.1.1. Leads to higher prices

1.1.2. Tightening of the labour market

1.2. Cost Push

1.2.1. firms production costs increase

1.2.1.1. Taxes

1.2.1.2. Raw materials

1.2.1.3. Fall Exchange Rate

1.2.1.4. New node

1.2.1.5. Passed onto consumers

1.3. Measures

1.3.1. RPI

1.3.1.1. Excludes Mortgage and Interest payments

1.3.2. CPI

1.3.2.1. Survey

1.3.2.1.1. BAsket of goods

1.3.2.2. Measure in UK

1.3.3. RPIX

1.4. Stagflation

1.4.1. Rise in Prices

1.4.2. Fall in output

1.5. Deflation

1.5.1. Sustained Reduction in Price Levels

1.5.1.1. Causes Recued Demand

1.5.1.1.1. Less Growth

1.6. Problems

1.6.1. Damages disrubution of income

1.6.1.1. Pensioners

1.6.2. Less Saving

1.6.2.1. More Borrowing

1.6.3. Inflationary expectations

1.6.3.1. Higher wages

1.6.3.1.1. Wage price spiral

1.6.4. Nation less competitive

1.6.5. Uncertainty

1.6.5.1. Reduced Investment

1.6.6. Menu Costs

1.6.6.1. Adjustments to lifestyle

1.6.7. Price signal Uncertainty

1.7. Hyperinflation

1.8. Cures

1.8.1. Demand side Policies

1.8.1.1. Reduce Demand

1.8.1.1.1. Less demand Pull

1.8.2. Supply side Policies

1.8.2.1. More supply

1.8.2.1.1. Lower prices

1.8.3. Fiscal Policy

1.8.4. Monetary Policy

2. Factors affecting AS

2.1. Taxation

2.2. Business Confidence

2.3. Exchange rates

2.4. Government Subsidies

2.5. Capital In Investments

2.6. New node

3. Macroeconomics

3.1. SUPPLY SIDE

3.1.1. What effects supply side.

3.1.1.1. Capital Goods

3.1.1.1.1. Innovation

3.1.1.2. Labour

3.1.1.2.1. Education+ Skills

3.1.1.2.2. Incentives

3.1.1.2.3. Decreased Union Powers

3.1.1.2.4. Population Growth

3.1.1.2.5. immigration

3.1.1.3. Entrepreneurship

3.1.1.4. Competition

3.2. Economic Cycle

3.2.1. Peak

3.2.1.1. Positive Output gap

3.2.2. Recession

3.2.3. Recovery

3.2.4. Boom

3.2.5. Trough

3.2.5.1. Negative output gap

3.3. National/global scale

3.4. AD= C+I+G+(X-M)

4. Microeconomics

4.1. Factors of production

4.1.1. Land

4.1.1.1. Rent

4.1.2. Labour

4.1.2.1. Wages

4.1.3. Capital

4.1.3.1. Interest

4.1.4. Enterprise

4.1.4.1. Profit

4.2. Individual scale

4.3. Economic Problem

4.3.1. Infinite Wants

4.3.2. Finite Resources

5. Factors affecting AD

5.1. Incomes of Individuals

5.2. New node

5.3. Interest rates

5.4. Exchangerates

5.5. Taxation

5.6. Quantative Easing

5.7. Government spending

5.8. Consumer Confidence

6. Saving

6.1. Interest Rates

6.2. Assets

6.3. Current Debt

6.4. Attitudes for Risk

6.5. New node

6.6. Age

6.6.1. Young= Moderate

6.6.2. Middle age= More

6.6.3. Old= Less or none

6.7. New node

7. Investment

7.1. Expectations

7.2. Increased Aggregate Demand

7.3. Increased Confidence

7.4. Increased Profits

7.5. External economic factors.

8. Current Account

8.1. Balance of Payments

8.1.1. Balance of Trade goods

8.1.1.1. +exports

8.1.1.2. -Imports

8.1.2. Balance of tarde in services

8.1.2.1. +Exports

8.1.2.2. -Imports

8.1.3. Current Account Balance

8.1.3.1. +/- Net Income FLows

8.1.3.2. +/- Net Tranfers

8.2. Exchange Rates

8.2.1. Strong

8.2.1.1. Imports Cheaper

8.2.1.2. Exports Dearer

8.2.2. Weak

8.2.2.1. Imports Dearer

8.2.2.2. Exports Cheaper

8.2.3. One currency Expressed into another

8.3. New node

9. unemployment

9.1. Part of labour force, actively seeking a job and not in a job

9.2. Types of unemployment

9.2.1. Cyclical

9.2.1.1. Demand Deficient

9.2.1.1.1. Fiscal/Moneary policies

9.2.2. Structural

9.2.2.1. Reallocation or closure of industries

9.2.2.1.1. Increase Mobility

9.2.3. Frictional

9.2.3.1. Movement between jobs

9.2.3.1.1. Increased Immigration, Job centers

9.2.4. Seasonal

9.2.4.1. Lack of jobs due to changes of environment or seasons.

9.2.5. Classical

9.2.5.1. real wages above the labour market equilibrium

9.2.5.1.1. Weaken Unions

9.2.5.1.2. Decrease Minimum Wage

9.3. Costs

9.3.1. Loss of Income to individual

9.3.2. Lose skills

9.3.3. Benefits to unemployed

9.3.3.1. Social costs on taxpayer

9.3.4. Forgone output

10. New node