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Economic objectives and the role of the Government - Coggle Diagram
Economic objectives and the role of the Government
Economic Growth
GDP Per Capita
A method of tracking economic growth per person in a country
GDP/Population=GDP Per Capita
GDP
Gross Domestic Income
How much money the economy has made in one country
Total Income = Total Output = Total Spending
Low Unemployment
Unemployment means not having a current working career
Employment means having a current working career
Types of Unemployment
Cyclical
Unemployment due to a decline in the economy
Frictional
Someone switching between jobs or seeking employment
Seasonal
Unemployment due to certain jobs only needing workers at certain times of the year e.g hotel workers
Structural
Long term unemployment due to shifts in an economy e.g less demand for a certain good or service
Claimant Count
The amount of people who claim benefits due to unemployment
Fair distribution of income
Types of income
Wages
Income
Rent
Profit
Intrest
How all money in an economy is divided to each individual
Price stability
Inflation
When the general price level increases over time
Positive inflation rates means that prices have increased
Negative inflation rates means that prices have decreased
Caused By
Too much demand
Known as demand-pull inflation
Rise in costs
Known as cost-push inflation
Consumer Price Index (CPI)
They track the increase or decrease in the cost of essencial items in each country to track inflation rates
Fiscal policy
Monetary policy
Supply side policy
Limitations of markets