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637394
Macro Economics
Descrição
Mapa Mental sobre Macro Economics, criado por adelinaarintha em 15-03-2014.
Mapa Mental por
adelinaarintha
, atualizado more than 1 year ago
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Criado por
adelinaarintha
aproximadamente 10 anos atrás
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Resumo de Recurso
Macro Economics
Key Economic Indicators
Healthy economy - 4 macro goals
sustained economic growth
actual
GDP
GDP = value of all final goods and services produced within a given country during a given period of time
methods of calculation
product approach
adding up the final value of everything produced in the country during the year
income approach
adding up all the incomes for households in the form of wages, profits, rent and interest, generated by the production of goods and services
expenditure approach
adding up all expenditure on final output. = C + I + G + (X-M)
must always give the same answer
fundamental identity of national income accounting : national product = national income = national expenditure
uses
measure economic growth
gauge economic strength of different countries
determine contribution from various sectors of economy
show distribution of income between wage,rent,interest and profit
guide for formulation policies
limitations
in accurately measuring national output
in measuring standard of living
in comparing countries
potential
an increase in the production capacity of the economy
low inflation
inflation = a situation where there is a sustained increase in the general price level
% rate of increase in the CPI/period
keep price stable - aid the process of economic decision making
low unemployment
unemployment of labour = situation where people who are available for work and are actively seeking for work cannot find jobs
unemployment rate
sustainable balance of payments
BOP = record of a country's international transactions, i.e. between its residents and the rest of the world
The circular flow of income
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