Please enable JavaScript.

Coggle requires JavaScript to display documents.

Economics (Macro is the large scale (Federal Reserve (Gold standard vs…

- - - - Demand shifter
        Consumer info
        Taste
        Population
        Income change
        Related good
        Consumer expectation of price
    - - Suppliers shifters
        Technology
        Change in price
        Producer's
        Disasters
  - - - Mortage back security are the banks selling the mortaguaues and then the invetment bankes move the money into other places.
      - Credit defalt swaps are the agreement between the buyer and seller of the mortage back security
      - Ratings agency were the compaines that were rating the bounds and assessing the risk in them. They alsso gave them a score of AAA to BBB.
      - fiscal policy and monetary policy
        
        Fiscal
        
        Tax and what the government spends
        It can also lead to a increase in tax rate.
        This was used in the great rescission.
        
        Monetary
        
        This is changing the interest rates.
      - Keynes vs Hayek
        Keynes believed that the government should bail out the general public during times of need
        Hayek believes that the government should stay out and let the market taken care of itself. It
    - - The human development index
        measures the other factors not in GDP that measures the health of the economy.
        
        This includes like the treatment and lifestyle of people.
      - Inflation is when their is so much money
        that it raises the price on all the goods.
- - - - When people do actions they decrees their own happiness
        because they don't know when to stop
        
        This is called Diminishing marginal
        utility
        
        An example is if you kept eating
        chip you would get less and less happy
- - - - Marginal tax brackets are the way the us calculates tax. If
        you are in the 25% tax bracket you only have to pay 9% on somethings in the category then something in the 15%. And so on.
- - - - Libertarian paternalism is type of decision nudging that
        allows free choice but the way they present it is to make
        you want to choose one thing over another.
        Example: an opt. out instead of a opt. in.
        
        Nudges dont change the price or anything else.
        They are only meant to make you choose the
        best option by making it the most accessible.
        
        Anchoring Heuristic is when you based your second
        answer off of your first even if they are not at all related.
        
        Availability Heuristic is what comes to you mind when
        you think of a topic that changes your view on it.
        
        Loss aversion means that it is better not to lose five dollars
        then to gain five dollars.
        
        Status quo bias is that people don't like change
        even if it would be to their benefit.
        
        Overconfidence/ optimism bias is when people think
        they are less likely at risk of something compared to
        other people.