Macroeconomics

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Macroeconomics by Mind Map: Macroeconomics

1. Negative Output Gap

1.1. Unemployment

1.2. Deflationary Pressure

1.3. Govt. imposes Expansionary Policies

1.3.1. Lower Tax

1.3.2. Lower Interest Rates

2. Supply Side Policies

2.1. Investment in capital goods

2.2. R&D

2.3. Innovation

2.4. Skills, Education and Training

2.5. Competition

2.6. Lower Income Tax

2.7. Immigration

2.8. More Women in Labour Market

2.9. Population Growth

2.10. Less Union Power

3. Positive Output Gap

3.1. Lower Unemployment

3.2. Inflationary Pressure

3.3. Govt. imposes Contractionary Policies

3.3.1. Higher Tax

3.3.2. Higher Interest Rates

4. Govt. Policies

4.1. Fiscal Policy

4.1.1. Government Spending

4.1.2. Taxation

4.2. Monetary Policy

4.2.1. Interest Rates

4.2.2. Supply of Money

5. Consumption

5.1. Employment

5.1.1. Job Insecurity = Less Spending

5.1.2. No Wages = Less Spending

5.2. Personal Income

5.3. Food, Petrol Prices

5.4. Housing Market

5.5. Natural Disasters (Drought)

5.6. Confidence

5.7. Exchange Rate

6. Government Spending

6.1. Interest Rates

6.2. Government spending on stimulus

6.3. Tax Rate - Lower Taxes = Lower Government Income

7. Investment

7.1. Confidence

7.2. Job Security

7.3. Financial Market Performance

8. Saving

8.1. Interest Rates

8.2. Risk Tolerance of Individual

8.3. Trust in Pension Funds

8.4. Stick Market Performance

8.5. Bank Performance

8.6. Economic Climate

8.6.1. In a recession people save more

8.7. Knowledge About Saving

9. Inflation

9.1. Cost Push

9.1.1. Rise in raw material costs

9.1.2. Rise in wages

9.1.3. Rise in taxes

9.2. Demand Pull

9.2.1. AD higher than AS

10. Unemployment

10.1. Classical

10.1.1. When wage level too high for employers to afford

10.2. Cyclical

10.2.1. Due to recession

10.3. Seasonal

10.3.1. Eg. ski instructor, hotel worker

10.4. Frictional

10.4.1. Time between changing jobs

10.5. Structural

10.5.1. When industry changes eg. textiles in north of England

11. Current Account

11.1. Exports - Imports

11.2. Transfers

11.2.1. People sending money home from abroad

11.3. Investment Income

11.3.1. BP Angola