Please enable JavaScript.
Coggle requires JavaScript to display documents.
Economics LINKS (Cost push inflation (Imports Increase [lower NX]…
Economics LINKS
Cost push inflation
Recession
Cyclical Unemployment
Recession
Imports Increase [lower NX]
Recession
Cyclical UE
Increase in supply of currency
Depreciation
Cost push inflation [Expensive imports] {Imported Inflation}
Current Account Surplus
Higher NX; Higher GDP Cyclical employment
Access to foreign assets
Demand-pull inflation
Economic growth
Increase in revenues
Investment expeniture
#
Increased productivity in LR
EoS: Average Costs decrease
Prices decrease
Exports/NX increase
Increased foreign demand for domestic goods
Current account deficit [net lender]
Economic Growth
Cyclical Employment
Living standards improve
Industrialisation
Negative externalities
Trade protectionism
Retaliation
Exports/NX decrease
Current Account Deficit
Domestic firms sales are low
domestic employment low
If more imports of capital goods then higher potential output in LR
Imports decrease NX increases
Decease in supply of local currency
Economic Growth
Current account surplus
Appreciation in ER