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ECONOMICS - Coggle Diagram
ECONOMICS
UNEMPLOYMENT
structural
Structural unemployment occurs when certain industries decline because of long term changes in market conditions
regional
When structural unemployment affects local areas of an economy, it is called ‘regional’ unemployment
classic
Classical unemployment is caused when wages are ‘too’ high. This explanation of unemployment dominated economic theory before the 1930s, when workers themselves were blamed for not accepting lower wages, or for asking for too high a wage. Classical unemployment is also called real wage unemployment.
seasonal
Seasonal unemployment exists because certain industries only produce or distribute their products at certain times of the year.
frictional
Frictional unemployment, also called search unemployment, occurs when workers lose their current job and are in the process of finding another one
cyclical
Cyclical unemployment exists when individuals lose their jobs as a result of a downturn in aggregate demand
voluntary
Voluntary unemployment is defined as a situation when workers choose not to work at the current equilibrium wage rate
ECONOMIC PERFORMANCE
GDP
the monetary value of all finished goods and services made within a country during a specific period
factors of production
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capital
man-made objects like machinery, equipment, and chemicals that are used in production
enterprise
An entrepreneur is a person who combines the other factors of production - land, labor, and capital
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law of demand
as the price of a good increases, quantity demanded decreases
needs and wants
a need is something needed to survive while a want is something that people desire to have, that they may, or may not, be able to obtain
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ECONOMIC GROWTH
an increase in the size of a country's economy over a period of time. The size of an economy is typically measured by the total production of goods and services in the economy, which is called gross domestic product