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Section 4 - Coggle Diagram
Section 4
Chapter 29
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Gross domestic product measures the monetary value of goods and services produces within a country for a given period of time.
Nominal gross domestic product measures the monetary value of goods and services produces within a country for a given period of time.
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Net exports refers to the monetary value of the difference between the nation exports earnings and its import expenditure
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Chap 30
Employment: refers to the use of factors of production in the economy, such as labour
Unemployment: when people who are in working age are both willing and able to work but cannot find employment
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Employment sector: As a country develops the number of people employed in the primary sector falls. The majority of people go to work in the tertiary sector.
Delayed entry to the workforce: Most tertiary jobs require a college education so the age of people entering the workforce rises.
Ageing population: Developed countries have a higher life expectancy and higher birth rates. This leads to a lower supply of labour.
Formal sector employment: This refers to officially recorded employment, where workers pay income tax and contribute to countries GDP
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Labour force survey ( LFS ) : uses the ILO’s standardised household based survey to collect work related statistics
Chap 31
Inflation is the sustained rise in the general level of prices of goods and services overtime, measured by Consumer price index.
Hyperinflation refers to very high rates of inflation that are out of control, causing average prices to the economy to rise quality
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Wage-price spiral occurs when trade union negotiate higher wages to keep income in line with inflation but this causes more inflation as firms raise prices to maintain profit margins
Chap 26
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Tax avoidance is the legal act of minimum payment of taxes such as by avoiding spending on items with a large sales tax
Tax evasion is the illegal act of not paying the correct amount of tax, perhaps due to a firm under-declaring its corporate profits
Fiscal policy is the use of taxes and government spending to affect macroeconomic objectives such as economic growth and employment
Chapter 25
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Balance of payments is a financial record of a country's transactions with the rest of the world for a given time of period.
Redistribution of income refers to the macroeconomic aim of achieving greater equality in the distribution of income in an economy.
Chapter 27
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Monetary policy refers to the use of interest rates, exchange rates and the money supply to control macroeconomic objectives and to affect the level of economic activity.
Chapter 24
Trading bloc is a free trade area which also promotes the free movement of factors of production between member countries
Chap 28
Supply side policy: Long term measures to increase the productive capacity of the economy, leading to an outward shift in the production possibility curve (PPC)