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Unit 3 AOS 2 - Coggle Diagram
Unit 3 AOS 2
Living Standards
Material living standards
This measure looks at the ability of individuals to access goods and services
Non-material living standards
Looks at a wider range of factors other than purchasing power that affects a persons wellbeing. The factors that affect non-material living standards are looked at in terms of the hard-to-measure concepts like happiness and life satisfaction.
Factors affecting living standards
Access to goods and services
Material
Having access to paid employment is a factor that will influence a persons income therefore their ability to purchase goods and services
Non-material
Services that will influence a persons mental health and their quality of life
Environmental quality
Material
If resources are depleted at an excessive rate then in both the short and long term material living standards might start to decline
Non-material
People know that being in nature is good for them, and so being able to access clean and healthy environments will engerise people
Physical and mental health
Material
A healthy person is able to work longer hours and be able to create new solutions to problems, be entrepreneurial and develop new and innovative technologies
Non-material
The inability to undertake and participate in leisure or work activities can negatively affect a persons enjoyment of life and level of happiness
life expectancy
Material
Longer life expectancy can contribute to more years working
Non-material
Feel more satified with life, knowing that they will be alive for a longer time
Crime rates
Material
Businesses affected by theft will have ti raise their prices so that their costs are covered
Non-material
Victims of crimes will be directly affected because their physical and mental wellbeing has been affected
Literacy rates
Material
Countries with low literacy rates may not be able to offer goods and services that are most valuable in the world economy
Non-material
Enjoyment of life can be significantly improved through the reading of interesting and thought provoking ideas
Macroeconomic goals
Strong and sustainable economic growth
Full employment
Low inflation
Business cycle
Nature
Causes
Aggregate Demand
meaning and importance
Factors that influence the level of AD
Aggregate supply
Meaning and importance
Factors that inlfuence the level of AS
Circular flow model