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Macroeconomics by Mind Map: Macroeconomics

1. Chapter 1 :macroeconomics

1.1. Macroeconomic performance

1.1.1. definition

1.1.2. the supply side policies(medium and long term) competition entrepreneurship capital goods research and development technology innovation labour education,training,skills performance related pay decreased union power reduced benefits lower income tax immigration

1.1.3. trend output and actual output graph

1.1.4. business cycle

1.1.5. normal rates of capacity utilisation

1.1.6. spare capacity and full capacity

1.1.7. output gap positive output gap inflation and unemployment negative output gap inflation and unemployment

1.1.8. recession

1.1.9. inflation demand-pull inflation cost-push inflation

1.2. the circular flow of income

1.2.1. households and firms monetary flow real flow withdrawal=s+t+m injection=i+g+x

1.3. macroeconomic performance

1.3.1. demand-side policies(short and medium term) fiscal and monetary policies effects on positive output gap and negative output gap

2. Chapter 2: Economic Growth

2.1. introduction

2.1.1. National output=National expenditure=National income

2.1.2. GDP IPD(flow out and flow in) Balance of these inflows of outflows:NPIFA GNP=GDP+NPIFA

2.1.3. income is not the same as wealth

2.2. real and nominal values

2.2.1. real GDP=nominal GDP - inflation

2.2.2. nominal values:expressed in current prices=money terms(compare to real terms) money GDP money wages

2.3. economic growth

2.3.1. definition

2.3.2. long term productive capacity increases Supply side policies

2.3.3. short term(the percentage change in real GDP)

2.3.4. diagram long term: shift outwards short term:move on to the frontier capital goods:shift more consumer goods: shift less

2.3.5. distinction between levels and rates of change GDP growth:in percentage recession

2.4. AD and AS analysis

2.4.1. demand-side policies and supply-side policies

2.4.2. long-term growth(graph)

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

2.4.4. A change in price leads to movement along:1.AD curve 2.AS curve

2.4.5. short run and long run

2.4.6. definition

2.4.7. the diagram

2.4.8. output gap diagram(LRAS doesn't shift)

2.5. GDP per capita

2.5.1. living standard

2.5.2. not measure welfare

2.6. index number

2.6.1. in order to compare numbers

2.6.2. index number=......

3. Chapter 3:Unemployment

3.1. definition

3.1.1. measure Claimant count Labour Force survey

3.2. causes and curing unemployment

3.2.1. Cyclical unemployment negative output gap Demand-side policies

3.2.2. structural unemployment decline in old industries, workers wrong skills supply-side policies

3.2.3. frictional unemployment people in between jobs supply-side plocies

3.2.4. seasonal unemployment regular fluctuations supply-side plocies

3.2.5. classical unemployment real wage above the labour market equilibrium supply-side plocies

3.3. the cots of unemployment

3.3.1. loss of income

3.3.2. lose skills

3.3.3. government pay benefits

3.3.4. low tax revenue

3.3.5. forgone output

3.3.6. runs inside ppc

3.3.7. indicator to full capacity

4. Chapter 4:Inflation

4.1. Introduction

4.1.1. definition

4.1.2. measure CPI or RPI

4.2. Measuring Inflation

4.2.1. CPI(official)

4.2.2. typical basket of goods

4.2.3. RPIX

4.3. Causes of Inflation

4.3.1. demand-pull demand-side graph

4.3.2. cost-push supply-side graph

4.4. Why is inflation a problem

4.4.1. government promote a fair distribution of income

4.4.2. savers to borrowers

4.4.3. higher wages

4.4.4. country less competitive

4.4.5. reduction in investment

4.4.6. menu costs

4.4.7. price signals will become blurred

4.5. curing Inflation

4.5.1. suppress the level of economic growth

4.5.2. supply-side policies

4.5.3. demand-side policies monetary policy bank of england fiscal policy

4.6. Evaluation

4.6.1. monetary policy.......

4.6.2. fiscal policy..

4.6.3. Supply-side policies

4.7. Deflation

4.7.1. definiton

4.7.2. 3 dangers

4.8. Factors that the rate of inflation in real world

4.8.1. wage growth

4.8.2. the exchange rate

4.8.3. immigration

4.8.4. information technology

4.8.5. globalisation

5. Chapter 5:The Current Account

5.1. Introduction

5.1.1. more choices

5.1.2. closed and open economy

5.1.3. international division of labour

5.2. The balance of payments

5.2.1. balance of trade in goods+balance of trade in services+net income inflows+net transfers

5.2.2. current account deficit

5.2.3. visibles and invisibles

5.3. Factors affecting the current account balance

5.3.1. demand side and supply side

5.3.2. chains of reasons

5.3.3. inflation higher

5.3.4. non-price factors

5.4. exchange rate

5.4.1. definition

5.4.2. depreciation and appreciation

5.4.3. SPICED

5.5. Current account and macroeconomic performance

5.5.1. X as a part of AD diagram chain of reasons diagram chain of reasons


5.5.3. A table(summary)

5.6. Improving the economy's external performance

5.6.1. expenditure dampening

5.6.2. expenditure switching

5.6.3. non-price competion

5.6.4. WTO: against protectionist policies