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the economy of the country - Coggle Diagram
the economy of the country
goals
limit unemploynment
keep prices stable
keep the economy growing over time
how is this measured?
GDP
does not include
stocks
one company buying another company
illegal activity
unemploynment rate
frictional
natural unem.
structural unemploynment
natural unem.
cyclical unemploynment
un. due to recession
inflation
percent change of market basket over time
business costs increase as workers demand higher wages. Interest rates increase, harder to buy loans
deflation
"crisis"
significant spending increases GDP
causes expansion
unempl. falls
factories start producing at full capacity to keep up with demand
amount of goods that can be produced is limited, ppl compete over it --> inflation
eventually, production costs increase as ppl demand higher wages
companies let some ppl go
unemployed ppl spend less