457466
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Mind Map by hamwl001.312, updated more than 1 year ago
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Created by hamwl001.312
over 10 years ago
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Economics
Unit 4
- Economic growth
- Invest new capital goods (physical)
- Enlarge national capital stock and human capital
- Technical process better?
- Endogenous growth theory: Gov create supply conditions-
favour investment and technical progress
- Infrastructure and judicial system
- Infrastructure and judicial system
- Endogenous growth theory: Gov create supply conditions-
favour investment and technical progress
- Enlarge national capital stock and human capital
- Invest new capital goods (physical)
- Costs and benefits of economic growth
- Aim of econ activity: Improve economic welfare &
standards of living
- Econ growth help achieve this, econ growth
be compatible with econ development
- Economic devolpment
- Improve living standards- reduces poverty &
human suffering
- Access to resources
- Access to human development- education
- Environmental sustainability and regeneration
- Sustainable economic growth
- Finite resources
- Use renewable
- Use renewable
- Resource degration
- Technologies minimise polllution
- Technologies minimise polllution
- Finite resources
- Sustainable economic growth
- Improve living standards- reduces poverty &
human suffering
- Economic devolpment
- Econ growth help achieve this, econ growth
be compatible with econ development
- Aim of econ activity: Improve economic welfare &
standards of living
- Fluctuations in economic actviity
- Speculative bubbles
- Rapid growth in asset prices, far above real value.
Bubble burst & confidence low, fall into recession
- Rapid growth in asset prices, far above real value.
Bubble burst & confidence low, fall into recession
- Demand shocks
- Contract demand and in boom
- Demand management policies
- Monetary Policy
- Fiscal policy
- Need to be accurate timing
- Bad timing destabilise economy and make it more volatile
- Long-term risky investments abandoned for
less risky short-term projects
- Unexpected interest rate/tax changes may affect
competitiveness and long term growth adversly
- Long-term risky investments abandoned for
less risky short-term projects
- Bad timing destabilise economy and make it more volatile
- Monetary Policy
- Demand management policies
- Reflate/ boost in recession
- Contract demand and in boom
- Political business cycle
- Generate a pre election boom & deflate the
economy after election until the next one
- Generate a pre election boom & deflate the
economy after election until the next one
- Seasonal fluctutaions
- Long cycles
- Investments in long run technology progress
- Creating a "new economy"
- Creating a "new economy"
- Investments in long run technology progress
- Supply shocks
- Speculative bubbles
- National Income
- Indicator for living standards?
- Underestimate economic
welfare & living standards
- Non-monetised economy
underrespresented
- DIY and housework
- DIY and housework
- Economic activity (illegal) in hidden economy is ommited
- Positive externalities not seen
- Quality improvements are under- represented
- Non-monetised economy
underrespresented
- Overestimate economic
welfare & living standards
- Negative externalities not seen
- Welfare loss may be seen as increase in national output
- Producing higher output = more strain on workers and get ill
- Extra production & consumption in healthcare seen as welfare gain!
- Extra production & consumption in healthcare seen as welfare gain!
- Producing higher output = more strain on workers and get ill
- Installing regrettables raises national income
- Burglar alarms- but prefer not to need them
- Burglar alarms- but prefer not to need them
- Income distribution
- Welfare loss may be seen as increase in national output
- Negative externalities not seen
- Standard of living made up of
- Economic welfare from goods and services
- Economic welfare from quality of life factors
- Economic welfare from public goods and merit goods
- Economic welfare from goods and services
- Underestimate economic
welfare & living standards
- Comparing between countries
- Statistical sophisitication of data collection
- Statistical sophisitication of data collection
- Indicator for living standards?
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